1) a. Briefly describe the "tit-for-tat" strategy? Suppose two players play theprisoners' dilemma game a finite number of times, both players are rational, andthe game is played with complete information, is a tit-for-tat strategy optimal inthis case? Explain using your own words.b.Using your own words, explain the backward bending labor supply curve?C.Using your own words, explain the production contract curve. What is therelationship between the production contract curve and the productionpossibilities frontier? Explain using your own words.d.You graduate from UCI with a 3.8 GPA. Is your GPA a strong signal tofuture employers that you will be a productive worker? Explain why orwhy not?

game is played with complete information, is a tit-for-tat strategy case? Explain using your own words. Using your own words, explain the backward bending labor sup Using your own words, explain the production contract curve. ionship between the production contract curve and the producti ibilities frontier? Explain using your own words. You graduate from UCI with a 3.8 GPA. Is your GPA a stro re employers that you will be a productive worker? Explain w y not?

game is played with complete information, is a tit-for-tat strategy case? Explain using your own words. Using your own words, explain the backward bending labor sup Using your own words, explain the production contract curve. ionship between the production contract curve and the producti ibilities frontier? Explain using your own words. You graduate from UCI with a 3.8 GPA. Is your GPA a stro re employers that you will be a productive worker? Explain w y not?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.3P

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10. Which one the following represents a theory for the long-term?a. Theory of factor endowmentsb. A theory of comparative advantagec. A theory based on the product cycled. An overlapping demand theory
a) Suppose that in the production of computer software, the marginal rate of technical substitution between engineers and marketer is 5 for IBM and 3 for Microsoft. Explain why this outcome violates the condition for efficiency in production and how a voluntary exchange could make both companies better off. b) Ignoring rationing problems and black markets, under rent control (or any price ceiling that produces a shortage) the price paid by consumers equals the marginal cost of producing the good. Does this mean the output level is efficient? Explain. c) What does the contract curve in an Edgeworth production box signify? Why do competitive markets generate equilibriums that lie on the contract curve?
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In terms of Adam Smith’s concept of the invisible hand, an efficient overallallocation of resources is likely to result from:(2)(1) The behaviour of public-spirited people, who consider the benefits theiractions will have on others;(2) The behaviour of self-interested individuals striving to maximise their ownwell-being;(3) The regulation of markets by economic planners;(4) The operation of command rather than market economies.
THIS IS FOR MATHEMATICAL ECONOMIC CLASS Question (2): The market for disposable cell phones: Q = 2300 – 16p and Q = 1850 + 14p. Suppose that more consumers prefer the disposable cell phone over the smart phone because the disposable cell phone is more durable than the smart phone. This latest news comes after the fact that firms that manufacture disposable cell phones have the latest technology integrated into their production facilities. What will be the market effect? Going back to question (d), suppose that the price of a disposable cell phone is now set at $11.75. How many disposable cell phones will be demanded by consumers? Whichever curve you’ve determined should be shifted, derive the new function.
“Because all points on a contract curve are efficient, they are all equally desirable from a social point of view.” Do you agree with this statement? Please explain why
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Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. Students in group A are given food (F) when they walk in, and students in group B are given a drink (D). Refer to Scenario 1. Suppose that all members of both groups have identical preferences where food and drink provide utility U = FαDβ. The contract curve in the Edgeworth box using a student from each group would be (a) a right angle connecting the lower left corner with the upper right corner.(b) a curve (not necessarily a line) connecting the lower left corner with the upper right corner. (c) a line connecting the lower left corner with the upper right corner.(d) a right angle connecting the upper left corner with the lower right corner.
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