Which of the following is FLASE for an extensive form game with perfect information? O A. All Nash equilibria has the property of non-credible threat B. Subgame perfect equilibrium eliminates non-credible threats O C In a Nash equlibrium strategy, each agent's strategy is a contingent plan
Q: Suppose a perfectly competitive industry can produce a product with total cost TC = 302 and the…
A: Monopoly is a single seller in the market selling unique good. It gives the monopolist to charge…
Q: Q-7: Given the three games table. Solve the game assuming mixed strategy. b1 b2 b1 b2 al 3 -2 ii al…
A: Introduction Here we have different mixed strategy given. i) b1 b2 a1 3-2-30 a2…
Q: In a closed economy, if households expect future income to be lower than expected and firms expect…
A: The answer is - d. rises, rises
Q: Suppose that the monopolist can produce with total cost: TC = goods in two different markets…
A: Given; Total cost; TC=10Q Demand function:- Market 1; Q1=120-P1 Market 2; Q2=240-4P2 Mailing cost=…
Q: You decide to purchase a tractor for a net cost of $350,000. You finance this tractor for 5 years at…
A: Loan amount = $350,000 Interest rate = 5% Number of payments = 5 Payment frequency = Annually (1…
Q: According to the Islam (2000) article "Comparative Advantage and Trade Balance in U.S. Agricultural…
A: the term comparative advantage means the ability of the producer to produce goods at a lower…
Q: 26,000 HEOM in 3% co.yearly 40,000
A: Introduction We have given a cash flow. Average value of 26,000 = 26,000/6 = 4,333.33 Present value…
Q: A report announces that people who golf at least three hours a day live longer. Soon after, demand…
A: In a market, two or more goods are related to each other when the change in price, demand or supply…
Q: 3. When firms are price searchers, why will marginal revenue (MR) be less than price? 4. Is price…
A: The answer is as follows:-
Q: NX rc S,I The graph shows the relationship between Savings (S), Investment (I) and w It is given…
A: *Answer: At world interest rate r, the saving is more than the investment, so the country is a net…
Q: Assume that in 2016 the folowing prevals in the Republic of Nurd Govemment spending (G)= 50 Net…
A: Aggregate expenditure is the sum of consumption investment in government spending in a closed…
Q: small beach are shown below. Market for Sunscreen Price (dollars per bottle) Quantity of…
A: Equilibrium is achieved at a point where quantity demanded is equal to quantity supplied.
Q: Suppose a perfectly competitive industry can produce a product with total cost TC = 302 and the…
A: In monopoly inefficient quantity is produced so it leads to deadweight loss in the society. When a…
Q: You operate a cafe which generated total revenue was $60,000. Your costs for rent and supplies were…
A: Opportunity cost refers to foregone income that could have been earned if resources were invested…
Q: Money cost and the real cost don't coincide"? Comment on this statement
A:
Q: Suppose that the monopolist can produce with total cost: TC = 200. Assume that the monopolist sells…
A: Price discrimination is the practice of a monopolist of charging different prices for the same good…
Q: Which of the following are signs of inflation? A.The price of a house in a high-demand market…
A: Inflation refers to a decline in the purchasing power of the currency of a country over given period…
Q: What are the “Country Factors” critical to attracting FDI to a host country?
A: Foreign direct investment(FDI): When some country invested directly in another country then it is…
Q: If the price index rises from 100 to 145, then the purchasing power of the dollar will fall by about…
A: The purchasing power of a dollar measures the number of goods and services one dollar can buy.…
Q: Consider the following data on two fictional countries:1 and 2.. Country 1 Country 2 Output per…
A: Production function : Akah1-a Where the data for two countries is : Let the productivity of country…
Q: 4. Consider the case where countries are free to specialize and trade. In the table below calculate…
A: Opportunity cost is the next best alternative choice.
Q: 1. Suppose the economy has fallen into a recession (output level ?0), and the federal government…
A:
Q: The full employment output level is the maximum amount of output that the economy can produce when…
A: Equilibrium in the goods market occurs at the intersection of AD and AS curves.
Q: At the economy's natural rate of unemployment Multiple Choice there is only a relatively small…
A: Natural rate of unemployment is that unemployment that occurs when the economy is in the long run.…
Q: Consider the following payoff matrix, where the first entry in each cell is the row-player's payoff.…
A: Introduction In payoff matrix each player choose best strategy so that he can get maximum payoff.…
Q: an increase in the expected real interest rate tends to raise desired saving, but lower desired…
A: The change in the expected real interest rate affects the level of saving and investment in the…
Q: Which of the following statements is correct? ____ If supply increases and demand decreases,…
A: Demand curve is a downward sloping curve that shows a negative relationship between price and…
Q: First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value. The…
A: Annual values is uniformly equal AW of all computed income and costs during the duration of a…
Q: Dinotopia's Balance of Payments Account, 2014 (billions of S) CURRENT ACCOUNT Exports of products…
A: Current account balance = Export of good and services – import of goods and services + Net transfer…
Q: The IS relation implies that the taxes increase leads to output decrease. Explain
A: It's difficult to quantify the economic effects of tax changes on economic growth, as measured by…
Q: In the Keynesian short-run macro model, a fall in the money supply will a)move the economy to the…
A: Aggregate expenditure is the sum of consumption spending, investment spending, government purchases…
Q: 2. Short-run Aggregate Supply and the Phillips Curve Suppose that the economy is populated by two…
A: As per the given information Firms set their prices as per sticky price and flexible price θ…
Q: onsider the following short-run production function, where bor (L) is the variable input and capital…
A: Given Q(L) =(6L2 −0.4L3) We need to calculate maximum value of labor (L),
Q: A recessionary gap exists when the macro economy is in equilibrium at less than the potential output…
A:
Q: What are the benefits and costs of land-use regulations such as inclusionary zoning for urban growth…
A: All federal, and municipal laws, rules and regulation, and plans pertaining to or controlling the…
Q: What is then the use or relevance of the purely competitive model?
A:
Q: What is the function and use of the supply in the market? What are the causes that are responsible…
A: Supply shows the functional relationship between supply and the factors that affects willingness and…
Q: Which of the following best represents a fixed cost: а. payroll b.rent Oc. cost of merchandise sold…
A: Cost refers to all the expenses occur in the process of production. Mainly there are two types of…
Q: Define Total Revenue and Marginal Revenue. What is Marginal Revenue equal to for a firm in a…
A: Cost refers to the amount of money required to produce the given amount of output by the firm. Costs…
Q: IS curve: r = 30.30-0.0015Y LM curve: =Y - 500(r + n°) SRAS curve: Y = Y + 100(P – P°) The nominal…
A: The IS-LM model describes how aggregate markets for real goods and financial markets interact to…
Q: According to Richard Thaler, economics is the sum of two parts. One is Optimization. What is the…
A: Richard Thaler was an American economist who won the Nobel Prize in Economics in 2017 for his…
Q: 2.The shoe company in Marikina have decided to increase to 18% per pair of shoes to due to its high…
A: Elasticity helps in determining the change in quantity demanded when there are changes in product…
Q: If households from a small open economy expect future income to be lower than expected, then the…
A: The compensation that is being received by the workers or employees through fulfilling various types…
Q: If a household experiences an $880 increase in consumption with a $1,100 increase in disposable…
A: Marginal propensity to consume shows the fraction of additional income that is spent on consumption.
Q: Roger's Lobsters serves buy-by-the-pound lobster dinners every Monday night. In order to attract…
A: Profit maximization is the means by which a firm determines the pricing, input, and production…
Q: Critically compare the principles of the IRR and net present value methods including their…
A: B. Compare the principles of the IRR and net present value The net present value rule states that…
Q: What is inter-temporal efficency and what are the equilibrium conditions for how resources are…
A: It refers to how current actions impact future options.. In theory, not consuming now may result in…
Q: Answer the following questions about country A. a) What was GDP equal? b) What was the value…
A: Calculation is as follows:
Q: There are two firms in a homogenous product market described by the demand function…
A: Initial calculation The quantity produced by firm1=q1 The quantity produced by firm2=q2 the inverse…
Q: How profit is different from the incorporating normal profit and when the normal profit is into…
A:
Step by step
Solved in 2 steps
- Does each individual in a prisoners dilemma benefit more from cooperation or from pursuing self-interest? Explain briefly.Consider the game with the payoffs below. Which of the possible outcomes are MORE efficient than the Nash Equilibrium (NE)? Note, they do NOT need to be Nash equilibria themselves, they just need to be more efficient than the NE. Multiple answers are possible, but not necessary. You need to check ALL correct answers for full credit. JILL High Medium LowMAGGIE Left 3,4 2,3 2,2Center 4,8 9,7 8,7Right 7,6 8,5 9,4Group of answer choices (Left, Low) There is no strategy combination that is more efficient than the Nash equilibrium for this game. (Right, Medium) (Left, High) (Center, Medium) (Center, High) (Center, Low) (Left, Medium) (Right, Low) (Right, High)What is the Nash Equilibrium in a game?A. A situation where all players cooperate for maximum gainB. A situation where no player can improve their outcome by changing their strategy unilaterallyC. A situation where players always choose the same strategyD. A situation where players randomly select strategies
- Consider the strategic form game shown. a. Assume that both players are rational. What happens?b. Assume that both players are rational and that each believes that theother is rational. What happens?c. Find the strategies that survive the ISDS.1. Ten commuters must decide simultaneously in the morning to use route A or route B to go from home (same place for all) to work (ditto). If a of them use route A, each of them will travel for 10a + 40 minutes; if b of them use route B, each of them will travel for 10b minutes. Everyone wishes to minimize his/her commuting time. a) Describe the pure Nash equilibrium (or Nash equilibria) of this ten-person game. Compute the corresponding profile of commuting times. Explicitly list all equilibrium conditions that are satisfied.Consider Bernard \ Mary Left Center Right Top 0,5 1,0 2,2 Bottom 1,0 0,3 2,2 The first number in a cell denotes the payoff to Bernard and the second number denotes the payoff to MaryForexample: πB(B,L)=1and πM(T,L)=5. a Give all pure strategy Nash equilibria of this one-shot game, if any. Briefly explain.Let Bernard play Top with probability p and Bottom with probability 1 − p; let Mary play Left with probability qL , Center with probability qC and Right with probability qR = 1 − qL − qC . b Give all mixed strategy Nash equilibria of this game.
- answer the ff: Suppose that each company cancharge either a high price for tickets or a low price. Ifone company charges $300, it earns low profit if theother company also charges $300 and high profit ifthe other company charges $600. On the other hand,if the company charges $600, it earns very low profit ifthe other company charges $300 and medium profitif the other company also charges $600.a. Draw the decision box for this game.b. What is the Nash equilibrium in this game?Explain.c. Is there an outcome that would be better than theNash equilibrium for both airlines? How could itbe achieved? Who would lose if it were achieved?Game Theory Consider the entry game with incomplete information studied in class. An incumbent politician's cost of campaigning can be high or low and the entrant does not know this cost (but the incumbent does). In class, we found two pure-strategy Bayesian Nash Equilibria in this game. Assume that the probability that the cost of campaigning is high is a parameter p, 0 < p < 1. Show that when p is large enough, there is only one pure-strategy Bayesian Nash Equilibrium. What is it? What is the intuition? How large does p have to be? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Answer all the questions, show all the working. Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40 What is Nash equilibrium? Is it efficient? Why? What needs to be complied with so that the players would like to cooperate? What happens when one of the players does not cooperate? Why? Define trigger strategy. Calculate the discount factor (δ) that would make both players decide to cooperate.
- on 8.1 Consider the following game: Player 1 A C D 7,6 5,8 0,0 Player 2 E 5,8 7,6 1, 1 F 0,0 1,1 4,4 a. Find the pure-strategy Nash equilibria (if any). b. Find the mixed-strategy Nash equilibrium in which each player randomizes over just the first two actions. c. Compute players' expected payoffs in the equilibria found in parts (a) and (b). d. Draw the extensive form for this game.Consider the following game, where M > 0: The matrix payoff is shown below Gill Left Right James Accept 0, 0 2, −2 Reject ?, −? 1, −1 a) Do players have a dominant strategy? (b) What is the Nash equilibrium (or equilibria)? (c) Are there any values of M such there is no Nash equilibrium in pure strategy? ( d) Find the mixed strategies Nash equilibrium?Consider the extensive form game portrayed below. The top number at aterminal node is player 1’s payoff, the middle number is player 2’s payoff,and the bottom number is player 3’s payoff.a. Derive the strategy set for each player. (Note: If you do not want to listall of the strategies, you can provide a general description of a player’sstrategy, give an example, and state how many strategies are in thestrategy set.)b. Derive all subgame perfect Nash equilibria. c. Derive a Nash equilibrium that is not a SPNE, and explain why it isnot a SPNE.