ASAP Please! High Price Low Price Player 2 Player 1 High Price 70,70 20,80 Low Price 75,10 30,35 Consider the table above with respective payoffs to players 1 and 2. The Nash equilibrium is given by Group of answer choices 1.Low Price; Low Price 2.High Price; High Price 3.High Price; Low Price 4.Low Price; High Price
Q: Economics as a course is referred to as "Social Science". Is the term used, Social Science, valid?
A: Economics is considered as science, arts as well as social science based on its characteristics and…
Q: Assuming that the inflation rate frum 2015 through 2017 is 6% per year, whai would be a $50,000…
A: Here we calculate the real values in all three years , real value means inflation adjusted nominal…
Q: Use the Interest Parity Condition and the Law of one price to answer questions 1 to 4. What wo happe…
A: In the international market, the interest rate parity condition will be true if the market is in…
Q: ) Suppose that the figure below shows the returns to skills in a source and destin ountry. Discuss…
A: The labor economics aspect is the investigation of the workforce as a component during the time…
Q: Which of the following is an example of a Variable Cost? A. an employee who makes $40,000 a year B.…
A: Fixed cost is the cost that remain same at all levels of output. Variable cost is the cost the…
Q: A new machine is to be purchased for $200,000. The company believes it will generate $75,000…
A: A firm might compare a project's IRR to the hurdle rate or the lowest allowable return to decide…
Q: What do Levitt and Dubner mean by the term "pimpact"?(choose right answer) a:an analysis of the data…
A: The answer is - d. The analysis of data gathered from street prostitutes indicates that the payment…
Q: Consider a remote town in which two restaurants, All-You-Can-Eat Café and GoodGrub Diner, operate in…
A: Answer is given below
Q: I know Sarah said Spider-Man: No Way Home was just okay... But I think she's wrong and plan to see…
A: Introduction Its answer is c) false analogy because here she has given false analogy to go to see…
Q: 18 16 14 12 P=MR: 10 Po MRo 6 4 2 O2 4 68 10 12 14 16 18 20 22 24 26 28 30 32 34 Quantity Utilize…
A: In perfectly competitive market, firms produce identical goods so they do not have market power.…
Q: All of the following are examples of protectionism except most favored nation treatment…
A: Protectionism refers to the government policies that create a specific restriction on international…
Q: 14) An analyst has found that a company's cost and revenue functions for a particular product are…
A: Marginal cost is the additional cost incurred to produce an additional unit of output. Marginal…
Q: Jill bought a $680 rocking chair. The terms of her revolving charge are 1.5% on the unpaid balance…
A: Jill bought a 680 rocking chair.
Q: According to Vladamir Propp, which "sphere of action" (which 'change' agent in the story) restores…
A: The answer is - D. The hero
Q: 2. Consider the following two player game in normal form: Player 2 R 2, 3 0, 5 0, 5 2, 3 Player 1 M…
A:
Q: Which of the following arguments for limitations on trade is more controversial among economists?…
A: In an open economy, government generally intervene in the international trade by using its policies,…
Q: 1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several…
A: Oligopoly markets are those that are dominated by a small number of suppliers.Oligopoly is a type of…
Q: A person has 80,000 in a savings account that earns interest at 7% per year, compounded annually. If…
A: Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate 80,000=12000[1-(1.075)^-time…
Q: e effects of rent controls in San Francisco w to regulate industrial pollution w the Fed can…
A: Macroeconomics alludes to the investigation of an economy - normally a country's economy - overall.
Q: Question 8 Fiscal policy is: a change in the money policy to solve domestic problems. the use of…
A: Answer 8. The way the central government generates money through taxation and spends it is…
Q: What is the Definition of Local and Global communication in multicultural settings and their…
A: The term "multicultural" refers to anything that integrates ideas, beliefs, or individuals from a…
Q: Define first, second, and third degree price discrimination and give one example for each. Which of…
A: Price discrimination basically refers to a marketing strategy in which a firm/company charges…
Q: Average variable cost is always increasing as output increases whenever... Group of answer choices…
A: Variable cost refers to the cost that changes as output or production changes. Average variable cost…
Q: Imagine you have a bank account as your only source of income. It has a balance of $300,000 and the…
A: Interest rate is the percentage of interest amount that is earned against the principal amount i.e.…
Q: Explain the historical connection between evolutionary biology and long-run competitive markets.
A: A perfectly competitive market refers to the market in which there is a large number of sellers and…
Q: Gendered Economic Geography mainly focuses on the gendered nature of the workforce, emphasizing how…
A: Gender equality would mean treating males and females same, as women also had right to be part of…
Q: A university student recieved $1,000 upon graduation at age 20 years. This person was hired by one…
A: The average propensity to consume (APC) refers to a metric that evaluates how much of one's income…
Q: 3. Does it matter that increased govemment debt/GDP ratios place a higher tax burden on future…
A: According to the Ricardian equivalence theorem, the impact of higher debt-financed government…
Q: oved on trade among membe h nation retains its own barrier ith non-members. preferential trade…
A: There are a few phases during the time spent economic integration, from an exceptionally free…
Q: Given that the maginal propensity to consume (MPC) is 0.50, what is the change in equilibrium output…
A:
Q: 5. To advertise or not to advertise Suppose that Fizzo and Pop Hop are the only two firms that sell…
A: If Fizzo decides to advertise he will it will earn a profit of 8 million if Pop decides to advertise…
Q: A country’s per-capita nominal GDP is growing at 5%, its price level is growing at 3% and its…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: Which of the following describes an advantage of the government supporting research and development…
A: The reduction in taxes for firms depending on the R&D activities will motivate firms to invest…
Q: At the current starting salary of $18,000 per year, the number of new business school graduates…
A: The markets are the place where the buyers and the sellers tend to interact with each other, as they…
Q: What is economic
A: Types of Economics Microeconomics and macroeconomics are inextricably linked. Microeconomics…
Q: 5. Elisa goes shopping to buy face coverings. The masks are available at her local store and are…
A: The term tender means the general invitation to bid for any government project related works or bids…
Q: 1. A manufacturing company is considering two alternative locations for a new facility. The fixed…
A: 1. a) New jersey Delaware Variable cost 15 25 Fixed cost 1,000,000 1,000,000 The fixed…
Q: Which of these does NOT cause shifts in short run aggregate supply (SRAS Nominal wages O Firms'…
A: Short run aggregate supply curve shows a positive relationship between price and output. It slopes…
Q: Consider the following tax structure: Income Bracket Marginal Tax Rate - $6,000 $6,000 $25,000 $0 -…
A: Answer; a. Tax = $ 29,800 b. Average Tax Rate = 33.11% c. Highest marginal Tax Rate =…
Q: Suppose that demand curve for apple in Brooklyn is as the followings: Qu = 72 – 12P where Qu is for…
A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price level.
Q: The demand curve that a monopoly faces is Qp = 1,102 - 9P. Rearranging this yields the inverse…
A: Answer; Here, marginal revenue is: MR=MC 1,102/9-2QD/9 = 6 => Q = 524 Price is: P = 1102/9 -…
Q: 2. Suppose that the demand curve for cigarettes is given by y(p) = 50 - P and the supply curve is…
A: y(p)=50-P y(p)=P
Q: When they act as a profit-maximizing cartel, each company will produce cans and charge $ per can.…
A: Introduction When they act as a profit - maximizing cartel, each company will produce 40 cans and…
Q: Suppose that solar energy panel and electric car are the only two goods produced in an economy. The…
A:
Q: 2) Using the figure below: explain why fishermen will expend more effort fishing if they find a new…
A: The marginal cost of production is the difference between the overall cost of production and the…
Q: a) If a regulator could force a natural monopoly firm to sell the socially optimal level of output…
A: Natural Monopoly is the type of monopoly firm where the entry barrier is because of the higher setup…
Q: Comment on the free rider problem in the context of global climate agreements.
A: Free rider problem in the context of global climatic agreements according to economists is treated…
Q: Ginger has agreed to a lawsuit settlement of S700,000 with a certain pharmaceutical company. The…
A: Answer;
Q: 3. Write a normal form representation of the game shown in the figure below and derive all pure…
A: "A pure-strategy nash equilibrium is an action profile with the property that no single player can…
Q: Assume that the typical menthol-cigarette smoker has a mean, disposable weekly income of $700 per…
A: We have two goods A and C for the given consumer with cobb Douglas utility function.
Step by step
Solved in 2 steps
- 1. Assume this game is played 2 times and there is no discounting. The whole payoff for two periods is the sum of payoffs of each period. Draw a tree of the game and solve it with subgame prefect Nash equilibrium. Explain clearly, handwritten is preferable.QUESTION 1: Game theory a) What is the pure strategy Nash equilibrium outcome if there is one? b) Is this a socially optimal outcome? If not, which outcome is preferred? c) Do all three solution approaches for simultaneous games work independently (not together)? If not, which do not? d) Draw the game as a game tree (extensive form). e) Switch the payoffs in cells (A, A) and (D, D). What is the pure strategy Nash equilibrium outcome if there is one?Question 1 Consider a first-price sealed bid auction of a single object with two biddersj = 1,2 and no reservation price. Bidder 1′s valuation is v1 = 2, and bidder 2′s valuation isv1 = 5. Both v1 and v2 are known to both bidders. Bids must be in whole dollar amounts.In the event of a tie, the object is awarded by a flip of a fair coin.(a) Find an equilibrium of this game.(b) Is the allocation of your answer to (a) efficient?
- Question 2 This is game theory. (c,c), (c,d), (d,c) are efficient, why? Definition:An outcome is Pareto efficient if there is no other outcome that increases at least one player's payoff without decreasing anyone else's Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineSuppose that the University of Alabama and Clemson are making spending decisions for theupcoming year. Assume that Alabama is currently spending $15 million on their recruiting andfacilities, and Clemson is spending $10 million. Each team has an additional $5 million to spendor keep as profits. If they both choose to not spend the additional $5 million then Alabama hasa 60% chance of getting the highest quality quarterback recruit to commit to them (getting thecommitment of the player is the goal). However, if they both choose to spend the additional $5million then there is a 57% chance that Alabama gets the high quality quarterback to commit. IfAlabama spends the additional $5 million but Clemson doesn’t then there is a 67% chanceAlabama gets the recruit. However, if Alabama does NOT spend the additional $5million butClemson does then there is a 50% change either team gets the recruit’s commitment. Setup thepayoff matrix and label the players, their strategies, and their payoffs, and…12. Consider a game where each player picks a number from 0 to 60. The guess that is closest to half ofthe average of the chosen numbers wins a prize. If several peopleare equally close, then they share theprize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers 13. Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30; (C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization. Can you help me answer number 13 please?
- Please no written by hand solution A local KFC franchisee is evaluating the number of fried chickens to produce each day. The following table shows the 4 alternatives, the states of nature and their payoffs Daily Supply 40 50 60 70 Daily Demand 40 $80 $0 -$80 -$160 50 $80 $100 $20 -$60 60 $80 $100 $120 $40 70 $80 $100 $120 $140 What would your decision be if the following rules are applied? (show your calculation) Maximax Maximin La Place Minimax-regretRefer to the Ultimatum Game in Figure 17.7. Recall that the payoffs are monetary payoffs. a. Suppose that players only care about monetary payoffs, with $1 = 1 util. Find the subgame– perfect equilibrium. b. Suppose that players are imperfectly altruistic. They receive 1 util for each dollar they earn but = util for each dollar the other player earns.Write down the extensive form reflecting the new payoffs. Find the subgame–perfect equilibrium. c. Suppose that players are perfectly altruistic, receiving 1 util for each dollar in the sum of their earnings. Write down the extensive form reflecting the new payoffs. Find the subgame– perfect equilibrium. d. Suppose that players are perfectly selfless, getting 1 util for each dollar the other player earns but no utility for their own earnings. Write down the extensive form reflecting the newpayoffs. Find the subgame–perfect equilibrium. Does player 1 end up choosing the outcome that player 2 prefers?…a)Find the Nash equilibrium b)Find subgame Nash equilibrium c) Explain why all Nash equilibrium are not subgame perfect. Please see the image The term in image are A,B b,c and w,a and 1,2,7,9 and 7,3,4,8
- 1) What are the Nash equilibria? Which one is unreasonable/non-credible threat? 2) What are the subgame perfect Nash equilibria? Does SPNE concept eliminate the unreasonable Nash equilibrium?5 WHILE USING GAME THEORY METHOD EXPLAİN CLİMATE CHANGE STRATEGIES PLAYERS PAYOFFS AND OUTCOMES IN 200 WORDSConsider the following coordination game: Player 2P1 Comedy Show Concert Comedy Show 11,5 0,0 Concert 0,0 2,2 a. Find the Nash equilibrium(s) for this game.b. Now assume Player 1 and Player 2 have distributional preferences. Specifically, both people greatly care about the utility of the other person. In fact, they place equal weight on their outcome and the other person’soutcome, ρ = σ = ½. Find the Nash equilibrium(s) with these utilitarianpreferences.c. Now consider the case where Player1 and Player2 do not like each other. Specifically, any positive outcome for the other person is viewed as anegative outcome for the individual, ρ = σ = -1. Find the Nashequilibrium(s) with these envious preferences.