Music Chairs 5 players are playing a new game of musical chairs with the following rules: There are 7 black chairs and 1 red chairs. When the music stops, everyone must immediately pick a chair. If a chair is picked by only one player, this player will sit on the chair and get 1 point if it's a black chair, and 5 points if it's a red chair. If two or more players picked the same chair, they all get 0 points (no one can sit). All players want to maximise points. Is there a Nash equilibrium with the following outcome? "1 players pick red chairs. The rest of the guys pick black chairs."
Q: Wanda works as a waitress and consequently has the opportunity to earn cash tips that are not…
A: A pooling equilibrium is a situation in game theory where all players choose the same strategy,…
Q: Johnson Electronics manufactures a power supply used in a variety of electronics products, including…
A: The quantity of goods that can be produced in a given amount of time is referred to as production…
Q: Distinguished carefully between the members of each of the following pairs of properties: a.…
A: A regression model is a statistical tool concerned with finding out the dependence between a…
Q: 3) The market for paper in a particular region in the United States is characterized by the…
A: Under competitive equilibrium, the demand curve is equal to the private cost curve (supply curve).…
Q: When a bank is failing, it may sell off some of its assets to try and keep its equity (net worth)…
A: Banking refers to the business of accepting deposits from customers and using those deposits to make…
Q: In real life perfect competitive market does not exist. However there are some markets that are just…
A: Perfect competition is a theoretical market structure in which there are many small firms producing…
Q: How does Natural Capitol impact the world?
A: Natural resources such as air, water, soil, minerals, and biodiversity that offer a variety of…
Q: Q2. For Cairo Dream House, a company that manufactures doors, the combined cost for labor and…
A: Profit is the financial gain or benefit that a business or individual receives after deducting all…
Q: Draw the graph. Highlight consumer surplus, producer surplus, and deadweight loss.
A: A measure of the consumer benefits brought about by market competition is called consumer surplus. A…
Q: A firm has the production function f(x,y)=x0.90.8. This firm has O constant returns to scale.…
A: The production function is:- f(x,y) = (x^0.9) * (y^0.8)
Q: A. Calculate an expression for the IS, MP and AD curves ( r= ?, IS Y= ?, AD Y=?) B. Let AS curve be…
A: A. To calculate the IS, MP,and AD curves , we need to use the following equations: IS curve…
Q: Use the demand and supply model to explain the following situations: 1. Coca-Cola has been producing…
A: Demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: could you add me some differences or clarification
A: An economic model called the Ramsey model examines the ideal amount of spending and saving over time…
Q: 1. Assume you are the Project Manager of a construction company going to prepare the tender for a…
A: The term "market condition" describes the status of the market at a specific time, including the…
Q: Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation Mining sells 10% of…
A: An equilibrium is defined as a state of rest. It is determined at a point where the market forces of…
Q: "After the epidemic wiped out the economy in March of 2020, the central bank has purchased assets…
A: The "Fed," commonly referred to as the Federal Reserve System, is the nation's central bank. In…
Q: Your company has just signed a three-year nonrenewable contract with the city of New Orleans for…
A: Year Initial Cost Annual Operating Cost Salvage Value 0 -191000 1 -60000 2 -60000…
Q: What are the consequences of this restriction on quantity? (surplus/shortage) Explain.
A: Quantity refers to the amount or number of something that is present, used, or produced. It can…
Q: Answer the given question with a proper explanation and step-by-step solution. 3. Use monopoly…
A: Monopoly is a term used to describe a situation where a single company or individual has control…
Q: The percentage markup of prices over marginal cost is (P-MC)/P. For a profit maximizing monopolist,…
A: Price elasticity of demand measures the responsiveness of the quantity demanded of a good or service…
Q: According to the U.S. BLS November and December 2021 price index data, What do you predict will…
A: Export refers to the process of selling goods or services produced in one country to buyers located…
Q: investigate how the assumption of a binding borrowing constraint can lead to a violation of…
A: Ricardian Equivalence suggests that changes in government spending have no effect on the overall…
Q: Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the…
A: Production possibility frontier is an economic tool that is used to graphical represent the ability…
Q: b. The following model is a simplified version of the multiple regression model used by BEST…
A: A multiple regression model explains linear relationship between a dependent variable and one and…
Q: Assume the following demand curve: Q = 50,400 1,200(P). Variable costs are estimated to be $25.06.…
A: Total revenue and variable costs: Total revenue is the total value of the commodities produced and…
Q: Explain the Bertrand paradox. How does it inform our explanations of market power in industries with…
A: Bertrand Competition refers to the competition where two firms compete on the basis of the price. It…
Q: Pizzeria would likely also experience diminishing returns to labor as more workers are added to work…
A: The diminishing marginal returns to labor implies means that as the firm would keep on hiring more…
Q: In a survey of 250 households regarding the ownership of desktop and laptop computers, the following…
A: The total number of households = 250. Number of households that own only desktop computer = 130…
Q: True/ False In real life perfect competition market does not exist.
A: A market system characterized by perfect competition has a large number of customers and sellers,…
Q: B. Consumer Price Indexes (CPI) are index numbers and are used to compare the evolution of prices…
A: Consumer Price Index refers to weighted price index of consumption goods which is a very widely used…
Q: Suppose that in a small town, the market for cement had five companies with market shares 0.3, 0.2,…
A: Herfindahl–Hirschman index or HHI index measures the market concentration by summing the square of…
Q: How would you describe the elasticity of mable's demand for milk
A: Price elasticity of demand is a measures the quantity of change in demand with respect to the change…
Q: Demand curve is Q=42-1.5P. The supply curve is Q=5+2P. a) What is the equilibrium price and…
A: Equilibrium in the market is reached where quantity supplied is equal to quantity demanded.
Q: The graph below refers to a significant increase in individual income taxes, taking them to their…
A: Equilibrium in the economy occurs at the intersection of aggregate demand (AD) and aggregate supply…
Q: Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts…
A: Initial Investment = 5000 R-E = 1200 per year
Q: Assume two firms with the same constant average and marginal cost, AC = MC = facing the market…
A: Given information: There are two firms, i.e., Firm 1 and Firm 2. Both firms have the same constant…
Q: Using Excel: Please prove Ernst Engel's law by using Lao data ( the share of agricultural productsin…
A: The GDP is the production of goods and services that is not used in the production process but are…
Q: 4) Price Level Pa P4; Q4. OP2; Q4. LRAS P4; Q2. OP5; Q3. OP3; Q3. SRAS, None of the above SRAS 0₁ 0₂…
A: In economics, inflation is the term use for continuously rise in prices of all goods and services in…
Q: The monetarist equation of exchange is: a. MQ = VP. b. VQ = MP…
A: Monetarists assume that the velocity is relatively stable. According to them the changes in the…
Q: If Standard Oil was a natural monopoly, what would happen to the average cost of producing gasoline…
A: In economics, the long run is the period that leads to change in all the factors of production such…
Q: 1. You have been asked to assess a proposed project to buy a new automated assembly machine that…
A: NPV stands for Net Present Value. It is a financial measure that calculates the difference between…
Q: 1. In the Keynesian model, suppose that the economy has the following values : C = 100 + 0.75*Y G =…
A: The expenditure-output model, widely known as the Keynesian cross graphic, analyses the position in…
Q: Is the India Rupee an safe haven? Why the India Rupee could not act as safe haven?
A: The Indian Rupee (INR) is generally not considered a safe haven currency. Safe-haven currencies are…
Q: Multiple Choice b O MC Q ATC er to the diagram for a purely competitive producer. If product price…
A: In perfectly competitive market, firms are price takers. Firms sell identical goods so they do not…
Q: 9. The efficient effort allocation and the maximum sustainable yield effort allocation EM for…
A: Efficient effort refers to the level of effort that maximizes the total economic benefits from an…
Q: Receive 120 USD in two years
A: To compare the present value of these four options, we need to calculate their present values using…
Q: Label axis and curves. Determine if the situation is a Demand or a Supply and specify which…
A: The demand curve is the graphical representation of the relationship between the quantity demanded…
Q: Yield curve: a) The US Treasury yield curve provides clues about the future direction of: 1)…
A: An inverted yield curve is a reliable prediction of an impending economic recession.
Q: Table 24-7 The table below lists the prices of chips and salsa for the year 2018, 2019, 2020. Assume…
A: Inflation rate is the rate at which the price level increases over the period of time. CPI is the…
Q: Consider the simple quantity theory of money. Which variables are exogenous? (Choose one or more.) A…
A: Equation for the quantity theory of money is given as: MV = PY Where : M : Stock of money V :…
Typed plzzz ...Asap
Step by step
Solved in 2 steps
- Cameron and Luke are playing a game called ”Race to 10”. Cameron goes first, and the players take turns choosing either 1 or 2. In each turn, they add the new number to a running total. The player who brings the total to exactly 10 wins the game. a) If both Cameron and Luke play optimally, who will win the game? Does the game have a first-mover advantage or a second-mover advantage? b) Suppose the game is modified to ”Race to 11” (i.e, the player who reaches 11 first wins). Who will win the game if both players play their optimal strategies? What if the game is ”Race to 12”? Does the result change? c) Consider the general version of the game called ”Race to n,” where n is a positive integer greater than 0. What are the conditions on n such that the game has a first mover advantage? What are the conditions on n such that the game has a second mover advantage?You and a rival are engaged in a game in which there are three possible outcomes: you win, your rival wins (you lose), or the two of you tie. You get a payoff of 50 if you win, a payoff of 20 if you tie, and a payoff of 0 if you lose. What is your expected payoff in each of the following situations? (a) There is a 50% chance that the game ends in a tie, but only a 10% chance that you win. (There is thus a 40% chance that you lose.) (b) There is a 50–50 chance that you win or lose. There are no ties. (c) There is an 80% chance that you lose, a 10% chance that you win, and a 10% chance that you tie.18. Choose the correct answer from the given below.
- You and your friend will divide $4. You have agreed to use the following procedure.Each of you will name a number of dollars, either $0, $1, $2, $3, or $4. You will chooseyour numbers simultaneously. If the sum of the amounts is less than or equal to $4, theneach of you receives the amount you named and the rest of the money is thrown away.If the sum of the amounts is greater than $4 and the amounts named are different, thenthe person who named the smaller amount receives that amount and the other personreceives the remaining money. If the sum of the amounts is greater than $4 and theamounts named are the same, then each receives $2. (a)Draw the payoff matrix of this game. Let “you” be the row player and “yourfriend” be the column player.(b) Derive the best reply functions of all players.(c) Find the Nash equilibrium (or all of the equilibria) of this game using thebest reply functions you found in part (a).Nn3 Suppose an incumbent monopoly firm currently earns a profit of $50,000 per period. A potential entrant could enter and make a profit of $15,000 per period while also lowering the incumbent’s profit to $20,000 per period. The monopoly firm could seek to engage in predatory pricing, which would lead to both firms earning a loss of $5,000 per period. (a) Is there a Nash Equilibrium in this game? If so, what is it? (b) Discuss how this game might play out in the real world?Consider a situation of after-match penalty shoot-out. The striker can target either East or West side of the goal. If he targets West, with 80% chance he shoots on target. If he shoots East, he is accurate with 75%. The goalkeeper has to choose the corner to jump to. If he does not guess the corner correctly and the shot is on target, then the striker scores. If the striker shoots West, the shot is on target and the goalkeeperjumps West, then with 75% chance he saves the goal. If the striker shoots East, the shot is on target and the goalkeeper jumps East, then with chance of 2/3 he saves the goal. Suppose, that it is a zero-sum game and if the striker scores his payoff is 1, otherwise it is 0.1. Formulate this situation as a strategic game and Find all Nash equilibria of the game.
- 6 Two people will select a policy that affects both of them by applying a "veto" in a sequential and alternate manner, that is: person 1 begins to veto a policy and then person 2 exercises his "veto" with the remaining policies; the process repeats until only one policy remains. Assume that there are 3 policies: X,Y,Z, and that person 1 prefers X to Y to Z and person 2 prefers Z to Y to X. a. Represents the game extensively b. Give the number of subgames C. Indicate the total strategies of the players d. find all subgame perfect nash equilibria e. Find all Nash Equilibriums.In the coin game, two players begin with 13 coins. Players take turns to remove coins. At each turn each player is allowed to remove one, two, or three coins. The winner is the last player to remove coin(s). Suppose there are 9 coins remaining and it is your turn to remove coin(s). Your best strategy is to remove how many coins? a. 0 b. 1 c. 2 d. 36 7 8 answer only
- 5.Each of Player 1 and Player 2 chooses an integer from the set {1, 2, ..., K}. If they choose the same integer, P1 gets +1 and P2 gets -1; if they choose different integers, P1 gets -1 and P2 gets +1. (a) Show that it is a NE for each player to choose every integer in {1, 2, ..., K} with equal probability, K1 . (b) Show that there are no NE besides the one you found in (a).Exercise 6.1Suppose that two airlines decide to collude. Analyse the game between these two companies. Suppose that each of them can charge for tickets a high price or a low price. If one of them charges 100 euros, it gets few profits if the other also charges 100 euros and high profits if the other charges 200 euros. On the other hand, if the company charges 200 euros, it obtains very little profit if the other charges 100 euros and an average profit if the other also charges 200 euros. a) Represent the matrix of results of this game. b) What is the Nash equilibrium in this game? Explain your answer. c) Is there an outcome that would be better than the Nash equilibrium for the two airlines? How could it be achieved? Who would lose out if it were reached?A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spend C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (36 + J )C - 2C 2 and the profits of the jeweler will be (30 + C )J - 2J 2. The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be Group of answer choices $17. $34. $51. $8.50. $25.50.