Refer to the table. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from operating as a monopoly. Which of the following is correct? Maria and Miguel each sell 3 gallons of milk at the price of $12 per gallon once they reach a Nash equilibrium. Maria and Miguel each sell 4 gallons of milk at the price of $8 per gallon once they reach a Nash equilibrium. Maria and Miguel sell 8 gallons of milk at the price of $0 per gallon once they reach a Nash equilibrium. Maria and Miguel sell 6 gallons of milk at the price of $12 per gallon once they reach a Nash equilibrium.
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- Mary and Raj are the only two growers whoprovide organically grown corn to a local grocery store.They know that if they cooperated and produced lesscorn, they could raise the price of the corn. If theywork independently, they will each earn $100. If theydecide to work together and both lower their output,they can each earn $150. If one person lowers outputand the other does not, the person who lowers outputwill earn $0 and the other person will capture the entiremarket and will earn $200. Table 10.6 represents thechoices available to Mary and Raj. What is the bestchoice for Raj if he is sure that Mary will cooperate? IfMary thinks Raj will cheat, what should Mary do andwhy? What is the prisoner’s dilemma result? What is thepreferred choice if they could ensure cooperation? A =Work independently; B = Cooperate and Lower Output.(Each results entry lists Raj’s earnings first, and Mary'searnings second.)Dr. Heinz Doofenshmirtz and Perry the Platipus have decided to venture into farming. They both participated in the venture eqully well, so at the end of the year, their farm produced five geese, each laying golden egs. Perry and Dr. Doof have to decide how to divide these five geese among themselves -- there are no market where they could sell them and there is not sharing or time-share arrangements possible. In other words, either they use the goose or loose it. Evidently, they cannot split an egg-laying goose in half.(a) Give an example of economically efficient allocation of golden egg laying geese between Perry and Dr. Doof. Briefly explain why the allocation you provide is efficient. (b) Give an example of an allocation of geese between the two that you think is fair (equitable). Briefly explain why it is fair in your opinion. (c) If the allocation in (a) is not the same as the one in (b), is it possible to come up with an allocation of geese that would be both efficient and…Suppose there are four villagers who can either raise sheep or bake bread. A sheepherder must buy a sheep for $200, raise it on the common and then sell it at the market in a nearby town. The table below shows how much a sheepherder can sell a sheep for. In the same time it takes to bring a sheep to the market, bread bakers can make a profit of $35. You will need to copy the table and fill it in as you answer the questions. A. Assuming each villager acts independently, how many sheep will be raised on the common? B. What is the total income of all four villagers? $ Part 2 Suppose you are the village elder. You no longer raise sheep or bake. Instead you sit around all day contemplating the meaning of life. One day you realize that the total profit of the village would be higher if fewer sheep were on the common. How many sheep should be on the common in order to maximize the village's profit? _______ sheep Part 3 Suppose there are two sheep on the common. A villager is…
- Hi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly ElasticConsider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. 2. The market for concession tickets (C)f) Calculate the inverse demand, write the profit maximizing condition,…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. Q) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…
- Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. j) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. j) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. 2. The market for full fare tickets (F)f) Calculate the inverse demand, write the profit maximizing condition,…
- Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. q) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. j) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P.The market for concession tickets (C) f) Calculate the inverse demand, write the profit maximizing condition, compute…