Consider the following two-player game. S₁ = [0, 1], for i = 1, 2. Payoffs are as follows. U₁(S1, S2) = 200 if S1 S2, and -100 otherwise and U2(S1, S2) 200 [$2 - S1 - (1/8)18 (a) Describe B₁. Explain. (b) Describe B₂. Explain. Hint: it's not necessary to use calculus to answer any part of this question.
Q: Question 2 Using supply and demand analysis, explain the effects of the following on the equilibrium…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 4. Elastic, inelastic, and unit-elastic demand The following graph shows the demand for a good.…
A: The elasticity of demand quantifies how the quantity of a good is desired in response to changes in…
Q: #6
A: We know that The real business cycle theory is a new classical macroeconomic theory that advocates…
Q: Question 2 According to the circular flow model, households work and receive payment from firms in…
A: Circular flow diagram shows that how money transfers among household and firms.
Q: 4. ) James' income was $67,000 in 2010, $72,000 in 2014, and $78,000 in 2017. The Canadian CPI was…
A: Given The below table shows that James' income and CPI in year 2010, 2014 and 2017 Year Jame's…
Q: Andres and David each own a restaurant. The preferred menu item by customers is their sandwich-salad…
A: Opportunity Cost is the cost of next best alternative that is being sacrificed in order to select…
Q: There are over 30 million firms in the U.S., of which about 5.8 million are corporations. A mere…
A: In the United States, there are more single proprietorships, partnerships, and small businesses.…
Q: A university spent $1.6 million to install solar panels atop a parking garage. These panels will…
A: given that, Solar panels capacity = 700 KW The electricity purchase price per kWh = $ 0.30
Q: Serita and Tyler decide to form a partnership after discussing it for a few days. They have…
A: One individual started a business but lacked the personal cash to own the companies he ran, so he…
Q: -A mechanical engineer borrowed the amount of P10,000.00 for 80 days at 12% per annum simple…
A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…
Q: x(p",w" Bp'w' x(p',w') Bp"w" X₂ Bpw' x(p",w"x(P,w') Bp"w"
A: The idea of weak axiom of revealed preference states that if a bundle lets say X is directly…
Q: Given the following model: Y = C + lo + Go C = a + b(Y-T) T= d+tYdt (a>0, 00, 0<t<1) [t: income tax…
A: Introduction We have given a model of a closed economy. Here are certain variables exist in the…
Q: Costs that were incurred in the past and cannot be recovered are called Select the correct answer…
A: There are different terms for different types of cost such as variable cost, sunk cost, marginal…
Q: How much is it likely that the economy will be the primary outside factor affecting the success of…
A: Business economics is an area of applied economics that focuses on the problems that businesses have…
Q: Why is Strategy so important for global business? Please explain.
A: An international market is any geographical region where a company conducts business that is outside…
Q: Question: A decrease in today's price of chicken will result in an increase in the quantity of…
A: Demand is the number of consumers who are able and willing to purchase goods at a range of prices…
Q: The following graph shows Sarah's budget line. Suppose the bus fare is $2.00. What is Sarah's weekly…
A: Opportunity cost is the foregone income which could have been earned if resources were invested in…
Q: 91) The market for an industrial chemical has a single dominant firm and a competitive fringe Price…
A: The market demand curve is obtained by adding together the demand curves of the individual…
Q: Large budget deficits __________. a.) reduce the value of domestic currency b.) help alleviate the…
A: When government expenditures are greater than its receipts, we can say that the government is…
Q: Price (dollars per ice cream cone) $3.50 3.00 2.50 0 A $6.50 B $5.50 1 C) $2.50 2 Figure 4-1 shows…
A: Consumer Surplus is also termed Social Surplus, Consumer Surplus is the difference between what the…
Q: Required information Consider the following factors. 1. (F/P,19%,34) 2. (A/G,23%,45) nd the…
A:
Q: We are both consumers and producers as individuals. What does this mean? What would be the correct…
A: All other factors remaining constant, the law of demand establishes an inverse relationship between…
Q: How long will it take money to double itself if invested at 10% compounded annually?
A: Compound interest formula: F = P (1 + r)n Where F is the future value P is principal value r is…
Q: Below table shows the production possibilities for the country of Emilon: Rice Beef A 0 60 B 70 54 C…
A: Production possibilities frontier shows different combinations of two goods that can be produced…
Q: if q new shirt cost $34.99 and the sales tax is $2.10 the sales tax rate is Answers: A. 2% B. 4% C.…
A: Given q new shift cost=$34.99 the sale tax =$2.10 Sales tax is levied by the government, it is some…
Q: A closed corporation is one that A. Sells stock, but is taxed as if it were a corporation B. Has…
A: Closed corporations are personally owned businesses with a limited number of stockholders, including…
Q: Consider the market for corn. Suppose that right now, the equilibrium price is considered “too low”…
A: Price floor is the established minimum price for a commodity below which is not allowed to fall in a…
Q: Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price…
A: Here it is given that if there is no government intervention the market price of chair is $130. For…
Q: You just invested $5,000 in Apple's stock that will yield 10% per year. Assumed that your annual…
A: Answer..
Q: Show complete solution. Consider a teacher depositing an amount P into a savings account and then…
A: P = F/ (1 + R)^t Where P : Present value F: Future value R : Per annum compound interest rate T :…
Q: following question that I posted is considered as a one question
A: expected rise in future prices has direct impact on current demand of a product . for example when…
Q: A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive…
A: Annual Payment = 325,000 n = (15+1 Years) i.e. 16 years r = 10%
Q: When the local grocery store puts cereal on sale, reducing its price from $4.40 per item to $3.40…
A:
Q: Calculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage…
A: An interest rate is the amount of interest due per period, as an extent of the amount lent,…
Q: F4
A: We know that Foreign Direct Investment is akin to the promoter's investment, where the investor…
Q: Question 16 The following graph shows Sarah's budget line. Suppose the bus fare is $2.00. What is…
A: Budget constraint shows the different combinations of goods that can be purchased by a consumer with…
Q: Refer to Figure 4-1. If the market price is $3.00, what is Kendra's consumer surplus? A $6.50 B…
A: Demand curve shows inverse relationship between price and quantity demanded.
Q: Q4. Suppose two firms (firm 1 and firm 2) sell differentiated products and compete by setting…
A:
Q: A. How much money should be deposited each year for 12 years if you wish to have $25,200 in the…
A: The future worth formula is FV=PV(1+i)n , where the PV rises for each period into the future by a…
Q: 1. A company's sales (in dollars) appear to be increasing linearly. In 2015 the company's sales were…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Question 11 Intra-industry trade between similar trading partners allows the gains from of a…
A: Intra-industry trade might be extensively characterized as the circumstance where countries…
Q: Manual tasks are now replaced by automation where technologies are used to produce and deliver goods…
A: Automation refers to the use of technology to do some manual activities. It is simply the…
Q: If there is inelastic demand for your labor, how does that influence individual (or union)…
A: The elasticity of demand for labour measures the responsiveness of labour demand to a change in the…
Q: Need help with this. I tried to do the graph and I think I got it. Please double check it and answer…
A: When we are deriving the market supply when the individual supplies are given. And for that we do…
Q: Any company in the U.S. that plans to issue stocks or bonds is required by the Securities and…
A: Companies must present their balance sheet and income statement because the Securities and Exchange…
Q: Years Bank Loan advance 2018 STANBIC 2,584,735 2019.…
A: The Herfindahl-Hirschman Index or HHI refers to the common measure for market concentration and it…
Q: Increasing demand from China has made New Zealand the world's biggest exporter of dairy products .…
A: Economies of scale occur when the price per unit drops as production volume rises. In other words,…
Q: Fill out the entries in the table below. Quantity Total Cost Fixed Cost Variable Cost Average…
A: Total cost is the total expense a company incurs to produce a particular level of production. The…
Q: 10 . Consider a consumer with a utility function U = x1 + x2. Initially, the consumer was only…
A: We are given a perfectly substitute utility function: U = x1 + x2 - Consumer is purchasing only…
Q: Which term refers to a legally established maximum price that firms may charge? A a price ceiling B…
A: Price floor is a minimum price at which a seller can sell a commodity. Subsidy is the amount of…
Hand written plz asap please ....i'll upvote if hand written plz asap.....
Plz solve full question
Step by step
Solved in 2 steps
- 8) Three decision makers have assessed utilities for the problem whose payoff table appearsbelow.s1 s2 s3d1 500 100 -400d2 200 150 100d3 -100 200 300probability.2 .6 .2Indifference Probability for PersonPayoff A B C300 .95 .68 .45200 .94 .64 .32150 .91 .62 .28100 .89 .60 .22-100 .75 .45 .10a. Plot the utility function for each decision maker.b. Characterize each decision maker's attitude toward risk.c. Which decision will each person prefer?8) Three decision makers have assessed utilities for the problem whose payoff table appearsbelow. probabilities and payoffs. S1 S2 S3 D1 500 100 -400 D2 200 150 100 D3 -100 200 300 Probability .2 .6 .2 Indifference Probability for Person Payoff A B C 300 .95 .68 .45200 .94 .64 .32150 .91 .62 .28100 .89…Lela must decide to go on a winter trip to norway with the hope of seeing northern light would yield a utility level of 2,000 but she has only a 50% chance that they will show during the days of her trip. making the trip without seeing the lights would yield a utility level of 100 and there is 50 % chance of this happening. what is lela's expected utilty if show goes on the trip? a. 2,100 b.1,050 c.42 d.950
- 6) For the payoff table below, the decision maker will use P(s1) = .15, P(s2) = .5, and P(s3) = .35. s1 s2 s3 d1 -5000 1000 10,000 d2 -15,000 -2000 40,000 (a) What alternative would be chosen according to expected value? (b) For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1-p), the decision maker expressed the following indifference probabilities. Payoff Probability 10,000 .85 1000 .60 -2000 .53 -5000 .50 Let U(40,000) = 10 and U(-15,000) = 0 and find the utility value for each payoff. (c) What alternative would be chosen according to expected utility?1.4. Suppose you are against one of two alternatives but 90% of theelectorate disagrees with your position and favors that option. Is there avoting method that is anonymous, neutral, and monotone that preventsthat option from being selected as the winning alternative?At a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how many dollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute dd dollars for every dollar that an employee contributes. The payoff to employee ii who makes contribution of xixi dollars is bi(1+d)xi−xi, where bi>0.bi(1+d)xi−xi, where bi>0. Assume that d=4d=4, bi=0.25bi=0.25 for i=1,2,…,10i=1,2,…,10, andbi=0.5bi=0.5 for i=11,12,…,20i=11,12,…,20 What is the best contribution level of any employee ii for i=1,2,…,10i=1,2,…,10. At a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how many dollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute dd dollars for every dollar that an employee contributes. The payoff to employee ii who makes contribution of xixi dollars is bi(1+d)xi−xi,…
- 8. Two states, A and B, have signed an arms-control agreement. This agreementcommits them to refrain from building certain types of weapons. The agreement is supposed tohold for an indefinite length of time. However, A and B remain potential enemies who wouldprefer to be able to cheat and build more weapons than the other. The payoff table for A (player1, the row player) and B (player 2, the column player) in each period after signing thisagreement is below. a) First assume that each state uses Tit-for-Tat (TFT) as a strategy in this repeated game.The rate of return is r. For what values of r would it be worth it for player A to cheat bybuilding additional weapons just once against TFT? b) For what values of r would it be worth deviating from the agreement forever to buildweapons? c) Convert both values you found in parts a and b to the equivalent discount factor dusing the formula given in lecture and section. d) Use the answers you find to discuss the relationship between d and r:…[Adverse Selection] Each of the two players receives an envelope, in which there is anamount of money that is equally distributed from $0, $1, $2, ..., $100. The amounts in twoenvelopes are independent. After receiving the envelope, each individual can check exactlyhow much money is put in his/her own envelope. Then each player has the option to exchangehis/her envelope for the other individual's prize. The decisions are made simultaneously. Ifboth individuals agree to exchange, then the envelopes are exchanged; otherwise, if at leastone player chooses not to exchange, each individual keeps his/her own envelope and receivesits attached sum of money.a. Model this game as a static Bayesian game (write the normal formrepresentation) and find the Bayesian Nash equilibrium.b. Consider a new game where the probability distribution of money in eachenvelope is changed. The amount is equal to $100 with probability 90%, and is equalto each number in $0, $1, $2, ... ,$99 with probability 0.1%.…ONLY SOLVE D An investor with a total wealth of $100 is faced with the following opportunities. First, he may invest $100 now and receive $144 if there are good times, but receive $64 if there are bad times. The investor estimates that good times happen with 50% probability.He can also buy an investor newsletter whether good times or bad times will occur. (a) Draw the decision tree that illustrates the options available to the investor and the payoffs to the different options. Define P as the price of the newsletter. (b) If the investor is risk-neutral with U(M) = M, where M is income, how much would he be willing to pay for the subscription to the newsletter? (c) If the investor is risk-averse with utility U(M) = M0.5, where M is income, how much would this investor be willing to pay for the subscription to the newsletter? (d) Suppose that the owner of the newsletter estimates that there are 75 risk-averse investors like those of part (c) and 25 investors like those of part(b). If…
- 6) For the payoff table below, the decision maker will use P(s1) = .15, P(s2) = .5, and P(s3) =.35. S1 S2 S3 D1 -5000 1000 10,000 D2 -15,000 -2000 40,000 What alternative would be chosen according to expected value?b. For a lottery having a payoff of 40,000 with probability p and -15,000 withprobability (1-p), the decision maker expressed the following indifferenceprobabilities. Payoff Probability10,000 .851000 .60-2000 .53-5000 .50 Let U(40,000) = 10 and U(-15,000) = 0 and find the utility value for each payoff. c. What alternative would be chosen according to expected utility?4.25 The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. Use a decision tree to recommend a decision.Recommended decision: Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand.EVPI: $* Please be advised this is for practice preperation only ** i just really need help on this - I dont undertsand X is an arbitrary number Suppose the stage game was played for 3 rounds. Consider the following strategy: Round 1: play C. Round 2: play C if both players played C in round 1. Otherwise, play E. Round 3: play D if both players played C in rounds 1 and 2. Otherwise, play E.Ignore discounting (that is, δ = 1). Suppose that both players pick the strategy above. What condition on x is needed to make this strategy profile a SPNE? Hint: remember to check for possible deviations separately for rounds 1 and 2.(a) 5 ≥ x(b) 7 ≥ x(c) 9 ≥ x(d) 11 ≥ x(e) 13 ≥ x