Row Player E C O N G 15, 28 0,2 7,23 92,4 Column Player A 110,0 31, 33 16, 1 40, 181 M 47,68 0, 1 48, 29 7,2 R 169, 133 11, 10 84, 55 3, 16 S 115, 74 1, 17 28, 57 33, 10 In game ii, strategy C is dominated for Row by strategy... E. O. N. O and N, when they are mixed so that each is played with probability 1/2. In game ii, strategies G and M are dominated for Column by strategy... A only. R only. S only. R or S.
Q: As we hire more workers why does our marginal cost (MC) increase? a. Out of jealousy (of our growing…
A: Marginal cost is the ratio of change in the total cost and change in the output. MPL is the ratio…
Q: When a quota is imposed on a market with a negative externality, the market is: Multiple Choice not…
A: Not efficient, because the net benefits individuals receive from the amount set by the quota are…
Q: A firm in a competitive market should hire workers up to the point where the value of the marginal…
A: Competitive market refers to a market scenario in which there are large/huge number of buyers and…
Q: binding (effective) price floor will
A: Here the price floor is the minimum price that a producer should receive for its product. A binding…
Q: If you are traveling in China and you purchase a meal that costs 140 yuan and the current exchange…
A:
Q: 1- Compute the value of D in the diagram, assuming a 10% interest rate. C₂ P D D ↓ p₁ 200 300 400…
A: Given, Interest Rate (r) = 10% Cash Flow for Year 1 and 2 = D Cash Flow for Year 3 = 200 Cash Flow…
Q: Should the USA support a global economy or a closed economy?
A: An open economy or a global economy is a type of economy that trades products, services and…
Q: Figure: Pilot Hots Price OANE ORIA Supp Refer to Figure Pilot Hots. An increase in the price of…
A: Increase in supply means there is an increase in supply without any change in price. Increase in…
Q: In the short run, the average total cost curve is U-shaped because of Oooo diminishing marginal…
A: In general, when talking about a competitive firm, it can be seen that a firm is facing a U-shaped…
Q: Use simple exponential smoothing with a = 0.3 to forecast bike sales for September throu December.…
A: given that,
Q: Consider the following information for the U.S. economy in 2003 (figures in billions). Personal…
A: The expenditure approach of GDP measures: Gross domestic product is calculated as the sum of…
Q: The consumers in the economy buys only two general types of products: Apples, and Bananas. Price…
A: CPI is the consumer price index. It is calculated as :- CPI = (Cost of basket in current year ÷…
Q: Suppose there is a remote stretch of highway along which two restaurants, Last Chance Café and…
A: Nash Equilibrium The Nash equilibrium is a constant state in game theory where no player can gain…
Q: Calculate the correlation coefficient for the following ordered pairs. 62 66 D r= 3 y 7 9 5 5 6…
A:
Q: Consider perfect competition and monopolistic competition. In which market structure(s) will we see…
A: In a perfect competition market structure, there are large numbers of firms producing homogenous…
Q: Explain the difference between capitalism and socialism.
A: The different laws and ordinances that comprise the economy are referred to as its economic system.…
Q: Question 5 Part c A tsunami hits the island of Leavey and destroys the whole crop of coconuts. What…
A: The country is said to be in equilibrium when the total demand of good is equal to total supply of…
Q: 6. Suppose that there are two identical firms in the silver mining industry. The cost curve of each…
A: Since you have given multiple sub-parts questions, we will solve the first subpart for you. If you…
Q: Consider how the people in the United States benefit from trade. Explain how it affects people and…
A: International trade refers to the purchase and sale of goods and services between/ among different…
Q: Due to the diminishing marginal returns in the short run production, for a typical firm, in the…
A: Diminishing marginal returns refers to the situation when firm is facing an increase in marginal…
Q: QUESTION 2 Assume the following: • Change in output = 50 units • Change in labor = 1 unit • Price of…
A: The value of marginal product of labour is defined as: VMPL = P * MPL Where P is price, MPL can be…
Q: Product OA $3,320 OB. $3,690 OC. $6.360 OD. $7,035 Movies Burgers Bikes 2017 Quantity 20 100 3 Price…
A: Real GDP is GDP measured in the prices of the base year. Real GDP in 2020 = Quantity of Burgers in…
Q: Marianne owns a dairy farm near Fresno, CA. She is currently producing cheese at an output level…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Define economic conditions in iran
A: An economy is a large group of linked trade, consumption, and production activities that help…
Q: John has the following utility function U(C₁, C₂) = min{c₁ + ac2,c2}, where C₁ and c₂ are his…
A: Given Utility function U=min{C1+aC2,C2} Y1=100 Y2=105
Q: A firm pays a price w for each unit it employs of its labor î. It also incurs fixed costs equal to…
A: We use the following formulas to solve the above question: Total Profit = Total Revenue - Total…
Q: a comparative advantage in orange production. an absolute advantage in orange production. a…
A: Mexico can produce either 200 bushels of oranges per acre or 200 bushels of bananas per acre.…
Q: 14) Calculate the real change in the income in $. B D 1 An iron mining company sells three grades of…
A: Real change income is calculated by evaluating the change in the income of a firm on a basis of the…
Q: After studying the impact of price controls, how would you justify the imposition of a price floor…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Which of the following represents the short-run effect of an increase in government spending? The…
A: Inflation refers to a phenomenon of sustained increases in the prices of an economy. The primary…
Q: Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of bananas is Group of answer…
A: Opportunity cost is the cost of producing one good in terms of other good. Opportunity cost shows…
Q: 2. The inflation-unemployment relationship The following graph shows the combinations of…
A: Two economic indicators of unfavourable economic conditions are unemployment and inflation. These…
Q: Below data shows the economies of Gotham and Metropolis. Gotham…
A: Inflation rate measures the rate at which price rises over time, which leads to fall in the…
Q: The amount of time producers and buyers have to adjust to price changes will do what to price…
A: Price elasticity measures the degree of responsiveness of demand or supply with respect to change…
Q: If a monopoly firm can price discriminate, it will charge a _______ price to consumers that have a…
A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…
Q: Interest Rate (percent) 14 #2086TNO 10+ 4+ I Money Market 1 1 20 40 60 I Ms1 % 140 100 120 160 Mp…
A: The proportion of deposits, commercial has to keep with themselves is known as RR(reserve ratio) .RR…
Q: If production happens when MC-ATC, then average variable cost is minimized. marginal cost is…
A: Marginal cost (MC): When there is addition to total cost because of the production of one more unit…
Q: The following payoff matrix shows the various profit outcomes for 3 projects, A, B, and C, under 2…
A: Probability theory's expected value is a more generalized version of an average with weights. The…
Q: 6. Suppose that there are two identical firms in the silver mining industry. The cost curve of each…
A: Firms engages in price and quantity competition to raise their profitability .Firms lowers their…
Q: Muriel Evans writes the following note on the back of an envelope: "I, Manuel Evans, promise to pay…
A: We show that a negotiable instrument is a signed contract that promises an amount of payment to a…
Q: When Nicole's income increases by 10 percent, her demand for tickets to professional hockey games…
A: Elasticity is a phrase used to describe how demand and supply can alter as a result of shifting…
Q: What are the economic benefits of perfect competition compared to a monopoly?
A: When we talk about a perfect competitive market structure, we're talking about a market system where…
Q: Suppose that there is an increase in the equilibrium price (=rent) and quantity (=units rented) of…
A: Equilibrium price: The price at which the quantity demanded is equal to the quantity supplied is…
Q: Suppose demand conditions in industries X and Y are identical but that productivity increases by 5%…
A: Option - decrease in industry X and increase in industry Y.
Q: BPO Services is in the business of digitizing information from forms that are filled out by hand. In…
A: Given information Cost of the digitalization of each form A 25 0.25 B 25 0.10 C 25 0.15 D 25 0.50…
Q: 17-4 Your company has a customer who is shutting down a production line, and it is your…
A: Profit-maximization pricing implies setting prices so that total revenue is as large as possible…
Q: How does the cost of “saving” jobs in protected industries compare to the workers’ wages and…
A: International Trade: The term international trade explains the transfer of products, services, and…
Q: A firm is considering the purchase of a new machine to increase the output of an existing production…
A: Alternative A Alternative B Initial Investment 14000 65000 Annual Cost 14000 9000 Market…
Q: Safeway sells water for $2 a bottle or $18 for a box of 12 bottles. This is an example of third…
A: Third degree price discrimination: the price varies according to consumer attributes such as age,…
Q: The long-run equilibrium quantity in a perfectly competitive structure is productively efficient…
A: A firm produces productively efficient output when price and ATC are equal at an optimal level of…
2 questions refer to the games above. (Fun fact, as an aside: the payoffs reflect the frequencies of the letter pairs formed by the names of the strategies in the English language, per 10,000 words.)
Step by step
Solved in 3 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?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?efer to the following table showing the probability distribution of payoffs from an activity to answer the question below: Units Payoff Probability 1 $30 10% 2 40 25% 3 60 30% 4 50 20% 5 10 15% What is the expected value?
-  Time remaining: 01 :51 :45 Economics A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $900. There are two bidders. The dealer believes that there are only three possible values, $7,200, $3,600, and $900, that each bidder’s willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other’s valuation. Assuming that the two bidders bid rationally and do not collude, the dealer’s expected revenue from selling the car is approximately Group of answer choices $3,600. $2,500. $3,900. $5,400. $7,200.** Please be advsed that this is practice only from previous yeasr *** Answers: (a) There are no Nash equilibria.(b) There are two pure strategy Nash equilibra, one with (H,H) and another with (L,L), and no mixed strategy Nash equilibria.(c) There are two pure strategy Nash equilibra, one with (H,H) and another with (L,L), and one mixed strategy Nash equilibria with p = 1/2 and q = 1/2.(d) There are two pure strategy Nash equilibra, one with (H,H) and another with (L,L), and one mixed strategy Nash equilibria with p = 1/2 and q = 3/4.(e) There are two pure strategy Nash equilibra, one with (H,H) and another with (L,L), and one mixed strategy Nash equilibria with p = 3/4 and q = 1/2.4.25 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: $
- 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?Many decision problems have the following simplestructure. A decision maker has two possible decisions, 1 and 2. If decision 1 is made, a sure cost of c isincurred. If decision 2 is made, there are two possibleoutcomes, with costs c1 and c2 and probabilities p and1 2 p. We assume that c1 , c , c2. The idea is thatdecision 1, the riskless decision, has a moderate cost,whereas decision 2, the risky decision, has a low costc1 or a high cost c2.a. Calculate the expected cost from the riskydecision.b. List as many scenarios as you can think of thathave this structure. (Here’s an example to get youstarted. Think of insurance, where you pay a surepremium to avoid a large possible loss.) For eachof these scenarios, indicate whether you wouldbase your decision on EMV or on expected utilityYou and a coworker are assigned a team project on which your likelihood or a promotion will be decidedon. It is now the night before the project is due and neither has yet to start it. You both want toreceive a promotion next year, but you both also want to go to your company’s holiday party that night.Each of you wants to maximize his or her own happiness (likelihood of a promotion and mingling withyour colleagues “on the company’s dime”). If you both work, you deliver an outstanding presentation.If you both go to the party, your presentation is mediocre. If one parties and the other works, yourpresentation is above average. Partying increases happiness by 25 units. Working on the project addszero units to happiness. Happiness is also affected by your chance of a promotion, which is depends on howgood your project is. An outstanding presentation gives 40 units of happiness to each of you; an aboveaverage presentation gives 30 units of happiness; a mediocre presentation gives 10 units…
- you and a friend decide to run a three mile race. If you agree to run together, you keep up with himfor the first mile, but you overexert yourself and run the last two miles at slower paces on your own. Tomake up for lost time, your friend runs the last two miles at a faster pace. Your mile times are 6:30, 7:00,and 7:30. Your friend’s times are 6:30, 6:00, and 6:00. If you both agree to run on your own, you run aconstant pace of 7:05 while your friend runs at a constant pace of 6:05. If you want to run together butyour friend wants to run solo, he runs his constant pace of 6:05. You, on the other hand, want to showhim that you can run faster, but you end up overexerting yourself after the first mile. You run times of6:20, 7:05, and 7:30. If he wants to run together but you do not, you both run at your pace of 7:05. Thissituation can be turned into an economic game, with the payoffs the overall race times. You each wantto run the fastest time you possibly can.(a) Who are the players in…64. (This problem assumes knowledge of the basic rulesof baseball.) George Lindsey (1959) looked at boxscores of more than 1000 baseball games and foundthe expected number of runs scored in an inning foreach on-base and out situation to be as listed in the fileP09_64.xlsx. For example, if a team has a man on firstbase with one out, it scores 0.5 run on average untilthe end of the inning. You can assume throughout thisproblem that the team batting wants to maximize theexpected number of runs scored in the inning.a. Use this data to explain why, in most cases,bunting with a man on first base and no outs isa bad decision. In what situation might buntingwith a man on first base and no outs be a gooddecision?b. Assume there is a man on first base with one out.What probability of stealing second makes an attempted steal a good idea?There are N women that all share the same toilet every day in an office building. Each sits on the toilet to use it and must decide whether to put down toilet paper on top of the toilet or sit directly on it. The toilet is cleaned just once a day at a random time and no one knows when this is done. It takes time and effort to put down toilet paper so if she knew the toilet was clean (either because she is the first to use it after it was cleaned or if all previous users after it was last cleaned put down toilet paper) she would rather not put down toilet paper. However, if she believes the toilet is dirty she would rather put down toilet paper. a) Is this game best described as simultaneous or sequential move? b) How many equilibria are there in this game? c) Briefly provide a general description of the equilibria. Which equilibrium/equilibria provide the highest social payoff?