For the following pay off matrix of firm A, determine the optimal strategies for both the firms and the value of the game: Firm B B, B2 Ba BA B5 A, 3 -1 6 Firm A A2 -1 8. 4 12 Ag 16 6 14 12 A4 1 11 -4 1
Q: The demand function for a truckload of firewood for college students in a small town is Qc = 400-p. ...
A: Given:- Qc=400-p p=400-Qc Qr=400-2p To calculate:- Inverse demand function,Firewood purchase by stud...
Q: The Solow model without exogenous productivity growth predicts that rich countries with more capital...
A: If the other economic variables are same, the Solow model predicts that over the long run, the devel...
Q: Question 1: Suppose the economy's PPF is given by Y=100-X²/100 and that there are oy cn people in th...
A: PPF equation : Y = ( 100 -X2)/100 (Represents productive capacity ) U(t) = Xt*Yt (For thomas ...
Q: Consider an economy with the following features Consumption, C= 100 + 0.9 Y, Income tax, t=-Y 3. Inv...
A: Answer: Therefore the IS equation is Y=2500-75i
Q: An increase in the expected price of commodity would likely to follow the current supply and demand ...
A: Demand shows the quantities of goods that a customer is willing to buy at various prices over a part...
Q: a. Apple faces competition from many other firms in the world market for mobile phones; therefore, A...
A: Perfect competition is a market structure where there are many sellers of a product and all the sell...
Q: 9. In general, elasticity is a measure of a. the extent to which advances in technology are adopted...
A: When talking about elasticity in economics, it is the measurement tool used at the marketplace to an...
Q: Consider a monopoly market with demand curve Q(P) = $. Suppose that producing a good costs $1 per un...
A: Monopolist will produce the goods where marginal revenue is equal to marginal cost .
Q: 3. Attach a complete solution. Draw the cash flow diagram. A manufacturing plant installed a new boi...
A: On a financial statement, a capitalised cost is an item that is allocated to the cost base of a fixe...
Q: The Economic Service Life ( ESL ) for an the number of years at which the highest cost occurs . O. T...
A: Answer a. The Economic Service Life ( ESL ) for an the number of years at which the highest cost occ...
Q: Which of the following best describes Relative Purchasing Power Parity? A basket of goods should cos...
A: The amount of goods and services that can be bought with given income is referred to as purchasing p...
Q: 1. You want to earn extra money to take your family to Disney Land so you debate whether you should...
A: Given Data, sells 800 units per month at $20/unit. product loses 5% . Calculation is shown below....
Q: The following table shows Farmer Parker's revenue, cost, and profit from wheat farming Quantity (bus...
A: Total cost is a sum of fixed cost and variable cost. Fixed cost remains constant and does not depend...
Q: Consumer has utility function In(c1)+beta"In(c2), where beta=1. Interest rate i=50%. Income y1-10 an...
A: Utility function : ln(c1) + ln(c2) (As Beta = 1 ) y1 = 10 , y2 = 50 Budget Constraint in peri...
Q: Suppose on an average month you sell 1200 specialty donuts at $2.50 each. For every $0.10 increase i...
A: Here, it is given that, Selling price of donuts: $2.59 each Monthly sales: 1200 Change in price: $0...
Q: (constant dollars) Proouctvty uing 2010 chogy $120,000 00.000 60.000 Productty using 1H6 technsingy ...
A: The production function depicts the technical association between the quantities of output (Q) that ...
Q: The price elasticity of demand measures The slope of the demand curve O The rate of change of the de...
A: ELASTICITY of demand help in many ways in economic decision and give valuable information such as it...
Q: 1 Francesca buys pencils and erasers at 10$ and 9$ per amount. Francesca has an income of 90$. There...
A: Tax refers to the money collected by the government from the firms and individuals for spending on v...
Q: Determine the interest rate per period for each of the following annual interest rates. A. 12% inter...
A: The given values are as follows: Interest rate = 12% Number of interest periods = 2
Q: Cobb-Douglas functions with constant returns to scale can be used to model A technological chang...
A: Answer: Constant returns to scale: constant returns to scale occur when due to an increase in 10 in ...
Q: Using the Heckscher-Ohlin model with two countries, trade will A increase the skilled-unskilled ...
A: The answer is - D. decrease the skilled-unskilled wage gap in both countries.
Q: The table below shows the production of tobacco in the US, in millions of pounds. Tobacco production...
A: The average rate of changes has to find out on the basis of given data of year and production of tob...
Q: Suppose the reserve requirement for the United States is 8%. Instructions: Round your answers to the...
A: Reserve requirement for the US state =8% This implies reserve ratio is 0.08
Q: A purchased a small condominium. He paid P350,000 as down payment and agreed to pay P35,000 every 3 ...
A: Down payment amount = P350000 Annuity or the installment amount = P35000 Interest rate = 12% Three m...
Q: Mark all the correct results for perfect competition 8 correct 5 incorrect O in long run P is at the...
A: A theoretical market structure is referred to as perfect competition. There are no monopolies under ...
Q: Price S1 20 18 16 14 SO 10 Demand 300 400 500 1000 Quantity Suppose that the market in the graph abo...
A: Taxes are unintended fees placed on individuals or companies and levied by a government agency – reg...
Q: Suppose Sky would like to spend Php 1000 to rent the badminton court (C) and study area (S) on a wee...
A: We have given that Rent of badminton court (P1)= Php 100 per hour Cost on study area (P2) =Php 150 ...
Q: How does climate change affect Switzerland and what is the approach for Switzerland on this issue?
A: Switzerland's strong economy allows them to address more difficult environmental challenges. Howev...
Q: Supya 2. Suppose we have an economy characterised by the following functions: 100 +0.8 Y C = 100 %3D...
A:
Q: Now draw a supply-and-demand diagram for the liquor market with the tax. Show the price paid by cons...
A: Answer -
Q: You borrowed money today to be paid in 8 equal payments at the end of 8 quarters. If the interest ra...
A: In the financial world, "principal" is a term that can mean various things. When referring to a loan...
Q: $21 $18 Supply $15 $12 $9 $6 $3 Demand 100 200 300 400 500 600 700 Quantity of Key Lime Pies Part 1:...
A:
Q: Discuss what is meant by the long run in economics. When does the long run occur?
A: A long run is a span of time during which a manufacturer or producer can make manufacturing decision...
Q: Assume that Canadian government taxes away $0.15 of each dollar of new income, that 35% of the remai...
A: The quantity of money received by a person, organization, or corporation over a period of time is re...
Q: A price floor is: O the maximum price that a seller can charge in a market. the minimum price that a...
A: Price floor is a situation when the price charged is more than or less than the equilibrium price de...
Q: 5. Anna is the mother of twins. For two years after her children were born, she was able to stay hom...
A: An economic system is a way for governments or communities to distribute and organise resources, goo...
Q: What is the approach of Switzerland on its fragile relationship with the EU?"
A: Switzerland's economic and trade ties with the EU are primarily managed by a series of bilateral agr...
Q: Task 3 Direction: Determine the price and quantity equilibrium in the market of the given equation: ...
A:
Q: In 2006, the Federal Reserve System decides to lower the money supply and raise interest rates in or...
A: Equilibrium in the goods market is reached at the intersection of AD and AS curves.
Q: Which of the following can expand a nation's production possibilities boundary (curve)? [select all...
A: The curve that depicts various quantities of goods and services that could be produced using the giv...
Q: (Figure: Market) A quota of 25 units is placed on the market that is shown in the figure. The quota ...
A: A quota is a type of limit imposed on the quantity in the market. It is generally imposed to restric...
Q: 1. How does the demand curve faced by a pure monopolist seller differ from that confronting a purely...
A: We know that There are many customers and sellers fighting against each other in a perfect competiti...
Q: Suppose a manager is faced with the following demand curve for a new software application in a monop...
A: Profit maximization in the monopoly market occurs at a point where MR=MC. We will calculate the inve...
Q: Explain one negative impact of the 2007–2009 Global Financial Crisis and ONE approach that was used ...
A: 2008 crisis was the great financial crisis in the world where it was started from US and spreaded ...
Q: 3. The effect of negative externalities on the optimal quantityof consumption Consider the market fo...
A: Equilibrium quantity and price is where the demand(private value) is intersecting with supply(privat...
Q: Q Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of ...
A: We show that deadweight loss from the tax given below
Q: Does a change in technology lead to a shift in the demand curve? Why, or why not? Your answer cannot...
A: Actually in the given question the change in technology or the technological progress always allows ...
Q: r=0% on deposits. Consumer needs to borrow $50 loan and the consumer has uncertain income of y=50,80...
A: expected income and rate of return are calculated as shown below...
Q: a. Based on the macro workhorse model, explain the 'journey' (mechanism) how an initial disequilibri...
A: The fiscal policy is decided by the government of the country. It means taxes or government expendit...
Q: In Ergonia, 4 million workers produce a real output of $520 billion in 2018 and the same number of w...
A: Labor productivity refers to the output produced by per unit of labour. It is also known as Average ...
Step by step
Solved in 3 steps with 3 images
- 14. Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. The government imposes a new $5 million tax to open retail outlets. What is the expected outcome of the new payoff matrix, given the tax? The Nash equilibrium is for Company A to not open retail outlets and for Company B to open retail outlets. The Nash equilibrium is for Company A to open retail outlets and for Company B to not open retail outlets. The Nash equilibrium is for both Company A and Company B to open retail outlets. The Nash equilibrium is for both Company A and Company B to not open retail outlets. There is no Nash equilibrium after the change given in the scenario.…Economics - Game Theory & Business Strategy Inverse Market Demand for tires is P = 200 - .01Q We assume the manufacturer sets a Price, 'X', for the tires and the manufacrturer moves first, selecting 'X' before any sales decisions are made. In this variation, we assume there are 3 retail firms, each with Market Power. The firms (1,2,3) make their sales decisions (q1,q2,q3) simultaneously, taking the manufacturer's price X as given. Total market sales, Q, then equal q1 + q2 + q3. We assume the only cost for the retailers is the cost 'X' for each tire. Additionally, the manufacturer produces the tires at a Marginal Cost of $10 a tire. **** Write out the Extensive form of this game ****For questions 32 - 35 consider the following "research and development" game. Firms A and B are contemplating whether or not to invest in R8D. Each has two options: "Invest" and "Abstain." A firm that invests will invent product X with a probability of 0.5, whereas a firm that abstains is incapable of invention. Investment costs $6. If a firm doesn't invent X. it makes 50 in revenue. If a firm invests and is the only one to invent X. it becomes a monopolist and generates $20 in revenue. If both firms invent X, each firm becomes a duopolist, and generates $8 in revenue. Revenues are gross figures (i.e. they are not net of investment costs), and there are no costs besides investments costs (i.e. no variable cost of production etc.). The firms are risk-neutral entities, and are uninformed of each other's investment decisions. Find the Nash Equilibrium (or Equilibria) of the "research and development" game. A. There are no Nash Equilibria B. Invest/Invest C. Invest/Abstain, and…
- For questions 32 - 35 consider the following "research and development" game. Firms A and B are contemplating whether or not to invest in R8D. Each has two options: "Invest" and "Abstain." A firm that invests will invent product X with a probability of 0.5, whereas a firm that abstains is incapable of invention. Investment costs $6. If a firm doesn't invent X. it makes 50 in revenue. If a firm invests and is the only one to invent X. it becomes a monopolist and generates $20 in revenue. If both firms invent X, each firm becomes a duopolist, and generates $8 in revenue. Revenues are gross figures (i.e. they are not net of investment costs), and there are no costs besides investments costs (i.e. no variable cost of production etc.). The firms are risk-neutral entities, and are uninformed of each other's investment decisions. Find the Nash Equilibrium (or Equilibria) of the "research and development" game. There are no Nash Equilibria Invest/Invest Invest/Abstain, and Abstain/Invests…1 \ 2 a b c A 2,2 2,1 0,0 B 3,1 3,0 1,3 C 1,3 3,2 3,1 a) Eliminate iteratively all strictly dominated strategies. b) Find all Nash equilibria. c) What is the player 1’s best response to the strategy σ2 = (z , ½ , ½ - z) of player 2, where z is a parameter that lies in the closed interval [0, ½]. d) Compute the payoffs to player 1 and to player 2 for their respective strategy profiles σ1 = (0,½,½) and σ2 = (½,0,½).1. Consider an industry with inverse demand given by p = 8 – q, where p is the price, and q is the quantity. There is one incumbent firm and one potential entrant. In the first stage of the game, the incumbent chooses its quantity qi. In the second stage, the potential entrant observes qi and chooses its quantity Ce. The potential entrant can also decide not to enter the market. The production technology of both firms are represented by the cost function C = 2q. To enter industry implies a fixed entry cost of F. (a) Find the equilibrium of the game, assuming that the potential entrant enters the industry. What are the profits of firms? (b) Assume that entry is not blockaded. For which values of F does the incumbent firm prefer to deter entry? (c) For which values of F, entry blockaded?
- This activity has 4 theorical and practical exercises for which you will have to describe the representation of each proposed game and its solutions.1. Consider the following game in strategic or normal form.A2 B2 C2A1 1,0 1,2 -2,1B1 6,2 0,3 2,3C1 2,2 -2,1 2,3▸ Use the iterative elimination of strictly dominated strategies to reduce the game as much as possible.▸ What is the set of rationalizable strategies for each player? Microeconomics (code ECO2023)Actividades 2© MIU City University Miami ▸ What is/are Nash equilibrium(s) in this game?▸ Explain the differences between cooperative and non- cooperative games. What are the fundamental hypotheses about the behavior of the persons in Game theory?2. Two hunters may choose, individually and simultaneously, to go deer hunting, as the deer can provide abundant and appetizing food, or to go hare hunting, also appetizing, but scarce. Deer hunting represents a challenge and requires mutual coordination. Hunting a…Consider a bankruptcy game with two risk-neutral players where V = $600,000, C1 = $400,000, and C2 = $800,000. What is the Nash bargaining solution?The value of x is 0<x<90. For what value of x is (D, R) a risk dominant equilibrium. Game Bob L RAnn U 100,100 0, 0 D x, x 90, 90 Select one: a.none of the other answers. b.It is never risk dominant. c.For all x, where 0<x<50 d.For all x, 0<x<90. e.It is always risk dominant
- 10) Consider a repeated game in which the following one-shot game between two players is repeated "infinitely." Denote by "d" the discount factor. (Assume both players have the same discount factor.) Player 2 Cooperate Defect Player 1 Cooperate 5, 4 0, 5 Defect 6, 0 1, 1 The two players try to support cooperation by using "grim trigger strategy" as discussed in class. Answer YES or NO to each of the following three questions. (a) Can they support cooperation if the common discount factor, d, is equal to 0.23? (b) Can they support cooperation if the common discount factor, d, is equal to 0.4? (c) Can they support cooperation if the common discount factor, d, is equal to 0.15?Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and C2=$800,000 a) What is the Kalai-Smorodinsky bargaining solution?Analyze the pure Nash equilibrium and mixed Nash equilibrium strategies in the following manufacturer–distributor coordination game. How would you recommend restructuring the game to secure higher expected profit for the manufacturer?
