Q: Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $ 40,000 2 30,000…
A: Net present value refers to the difference between the PV of cash inflows and the PV of cash…
Q: Suppose that the govern- ment imposes a producer tax. That is, the firm pays t units of consumption…
A:
Q: A 20-yr loan is being negotiated with a savings and loan company. $50,000 is to be borrowed at 8%…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: A consumer consumes two goods: wraps and tea, with respective quantities x1 and x2. Suppose the…
A: Indifference curve is the curve in which satisfaction of consumer on different combination is…
Q: What factors might explain why states pass minimum wages higher than the federal level? There are…
A: A national minimum wage is founded on the premise that every worker has an equal right to the same…
Q: Which of the following is true about competitive firms? A firm with fixed/sunk costs receiving a…
A: Competitive market is the one with large number of sellers and buyers in the market with each seller…
Q: Given the endowments and preferences below X1 X2 Alex 5 3 Zoe 5 4 U(x1, x2) min{X1, X₂} X1 + X₂ (a)…
A: The endowment is the availability of resources with a nation, a person, or an identity. A higher…
Q: Suppose the economy is in a recession. The output gap is negative $1 trillion. The AE function reads…
A: MPC is the marginal propensity to consume. MPC can be found out from the AE function. As , AE = a…
Q: Consider an individual who initially works T-Lo hours per week, where (T-Lo)>0. They earn an hourly…
A: The work-leisure choice model: Individuals need to trade-off between how many hours to work and…
Q: write it out please
A: An indifference curve is a graphical representation that shows various combinations of income and…
Q: Consider an individual who lives in an economy without a welfare program. They initially work T-Lo…
A: Every worker in the economy works to earn some monetary benefit for livelihood. Generally, the…
Q: In the Grossman model, health, H, is a variable. variable and home good, Z, is a (
A: Grossman's Model of health is a model that studies the demand for health and medical care. It seeks…
Q: Question: Which of the following statement(s) will be the most persuasive for Ben to encourage him…
A: Ben is faced with a decision of whether to accept a promotion that involves moving to Lagos,…
Q: Consider the three stocks in the following table. Pt represents price at time t, and represents…
A:
Q: 3. The quantity of a commodity demanded by a consumer is influenced by the price of the commodity. O…
A: A consumer refers to a person or organization that uses goods and services to satisfy their wants…
Q: Structural disequilibrium in BOP does not occur due to Select one: Change in Income Change in…
A: Balance of payment (BOP) records all the transactions between the home country and rest of the…
Q: You are considering buying a piece of industrial equipment to automate a part of your production…
A: The discounted present value of the upcoming periodic payments, which is computed over n years and…
Q: A low exchange rate results in Select one: a. The imports of a country increasing b. Cheaper imports…
A: Exchange rate refers to the rate at which two countries make exchange of goods and services. The…
Q: 2. A friend has started a business selling software. The software is a great hit, and the firm…
A: Present value of an annuity is given as: => P = C *{1 - (1+r)-tr}P : Present value C : per year…
Q: q 0 1 2 3 4 5 6 7 8 9 10 tr 30 58 84 108 130 150 168 184 198 210 tc 10 23 30 41 56 75 98 125 156 191…
A: b) The assessment of the associated costs and potential rewards of specific firm operations or…
Q: 45 40 35 30 25 20 15 10 5 a. Price 20 Show Transcribed Text $1,900. b. $1,600. 40 C. $2,000. 60 d.…
A: Total surplus is the sum of consumer surplus , producer surplus and government revenue. Consumer…
Q: Unsure where to plot equilibrium
A: Demand curve plots the quantity demanded by the consumers at different prices during a given period…
Q: Dick Durbin's website: America now owes over $14 trillion to our creditors. Referring to the above…
A: Economics is a subject that deals with how to utilize scarce resources that have alternative uses in…
Q: Suppose that the movie theater can identify which students are domestic and which students are…
A: The movie theater wants to maximize the number of tickets sold, so it will charge the price that…
Q: viting this editorial? Alexi and Tony own a food truck that serves only two items, street tacos and…
A: Output per hour Street Taco Cuban Sandwiches Alexi 80 20 Tony 100 30
Q: Which of the following would be included in the gross domestic product (GDP) of the United States?…
A: Introduction GDP is a measure of the total value of products and services generated inside a…
Q: How many years will it take an investment to triple if the interest rate is 8% compounded annually…
A: When an amount is compounded annually, interest keeps added on for the compounding year after year.
Q: You have eaten two bowls of ice cream at Sundae School Ice Cream store. You consider eating a third.…
A: A sunk costs is a cost you can't recover. An illustration of this would be a non-refundable pass to…
Q: Suppose X~N(168,10), and Z~N(0,1). Then x = 159, is equivalent to z = ______. (Round your answer to…
A: Given information: X follows a normal distribution with a mean equal to 168 and a variance equal to…
Q: Category Institutionalized Full-time workers Less than 16 years of age Armed forces (noncivilian)…
A: Introduction In economics, employment refers to the condition of being employed or being employed.…
Q: A bank account pays 4.5% annual interest, compounded monthly. How much must be deposited now so that…
A: Here, given information is: Interest rate (r): 4.5% annually Compounding period (m): 12 (monthly)…
Q: key economics of a retail market (mall) in new york ? explain in 2 paragraph
A: Market structure defines and distinguishes diverse industries depending on the degree and type of…
Q: c. Next, create a table showing marginal revenues, marginal costs and marginal profits. Indicate in…
A: Profit is the difference between the total revenue and total cost. Profit = TR - TC Marginal…
Q: Consumer surplus is equal to the difference between
A: Introduction: Consumer is a term used to describe an individual or group of people who purchase…
Q: A commercial bank has capital of 5000 and a leverage ratio of 10. If the value of the banks assets…
A: Increment by 0.5% to keep up with the leverage ratio of 10. The capital increment required can be…
Q: 1. The supply of paper is described by the following equation: Qs = 5,000P where Q is tons supplied…
A: Corrective tax is used by government to correct the externality being created. It is charged by the…
Q: Consider how an appreciation of the concept of opportunity cost may be of use in explaining why it…
A: Opportunity cost refers to the cost of the opportunity foregone by not choosing it. It occurs when…
Q: Your 13-year old cousin knows that you are in college and learning corporate finance. She is very…
A: Compounding is the process of generating earning on an investment's earnings.Finding the present…
Q: Referring to this table, calculate the marginal propensity to consume. Output Consumption Investment…
A: In economics, the MPC is a metric that quantifies induced consumption, the concept that the rise in…
Q: a) Which costs are fixed and which are variable? b) For the first through the fifth customers,…
A: a) Now here the protection money of $500 has to be paid irrespective of the chicken plate that is…
Q: Lucia owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on…
A: Given:- Lucia marginal cost=0 Lucia charges price=$4 No. of market=2 i.e Market A and Market B…
Q: Assume that Elike raises $5,000 in cash from a yard sale and deposits the cash in his checking…
A: Money supply is defined as all the currency held by the public and other financial instruments in…
Q: Dana's utility function is U(x,y) =3.2 x³.7y7.⁹. It follows if she has 2.4 units of good X and 1.1…
A: Marginal Rate of Substitution As long as the new good is equally fulfilling, a customer will consume…
Q: Consider a Ricardian model with two countries, the United States and Ecuador, producing two goods,…
A: Production is the process of creating goods or services using various resources like labor, raw…
Q: 3. The EPA wants to reduce emissions of sulfur dioxides from electric power-generating plants by 20…
A: 3) The cost of meeting EPA regulations would be achieved wherein each plant would be required to…
Q: The demand function for bicycles in Holland has been estimated to be Q = 2,000+ 15Y - 7.5P where Y…
A: Elasticity measures the change in quantity due to change in price. The price elasticity of demand…
Q: 5. The quantity of a commodity demanded by a consumer is influenced by the number of consumers in…
A: A consumer is a person or an organization that purchases goods and services to meet their needs and…
Q: Provide a law of demand type explanation for why women with more education and high-paying jobs have…
A: The demand for having children can be influenced by the perceived price of having children, which…
Q: Q1) Given the following economic identities: GDP = C+I+(X-M)……………………………...…………………………………………….…
A: a) Macroeconomic policy is defined as a set of federal government rules and guidelines adopted to…
Q: The exchange rate is 1 £ = 3 $. Which action would be undertaken if a fixed regime is followed, and…
A: Exchange rate is the rate at which currency of one country can be expressed in terms of the other…
Step by step
Solved in 2 steps
- 1. Consider the one-sided model with linear payoffs. Fix n = 10. Derive the conditions on decay and cost of link parameters under which a single hub with 9 spokes and a hub with windmill network with equal size three petals is a Nash equilibrium. 2. Consider the one-sided model with decay. Show that a Nash equilibrium network is either connected or empty.County 2 Left Right -100, -100 Left -10, -10 County 1 Right -100, -100 -8, -8 The numbers in each cell represent traffic deaths experienced by the citizens of two adjacent counties when the counties choose to let drivers drive on either the left or right side of the road. The minus signs indicate that these deaths are costs. Deaths in County 1 are listed first (in bold), then County 2. How many Nash equilibria are there for this decision problem? Select one: О а. 1 O b. 0 Oc. 2 O d. 4In the film Batman the Joker proposes a prisoner's dilemma. There are two ships A and B. The ships can either cooperate or detonate. The matrix of the model is: C. D C. 2,2 2,1 D 1,2 0,0 Assuming that players play this game infinitely repeatedly, so that after every round the probability that the game is repeated is m with 0 ≤ m ≤ 1. Devise at least two strategies that can be played in this indefinitely repeated game, find their expected payoffs, and find its Nash Equilibrium/Equilibria and the Subgame Perfect Nash Equilibria assuming that only available strategies are the ones you devised. Summarise the main insights from your analysis of the modified game
- please discuss the separation eqilibrium in details 1. Assume that two players play the Tinder game. There are two types of potential boyfriends: the gentleman (25% of the population) and the douchebag (75% of the population), and they can decide on the different level of effort: low, medium, and high. For the first type, the respective costs are 30, 50, and 80. For the second type, the respective costs are 50, 75, and 120. For the potential boyfriend, the payoff from being in relationship is 130, and the payoff associated with being dumped is 70. The girl can get 60 if she stays single, 100 if she is in relationship with the gentleman, and 25 if she dates the douchebag (credits to Owen Sims) a) Present the game in the extensive form b) Calculate the expected pay-off for the girl. Should she date at all? c) Discuss whether the game has a separating equilibrium1. Consider the two-player game with the following matrix form representation a 3.2 y -1.0 b 1,3 1,-1 с -1.1 4.2 where player 1 is the "row player,” player 2 is the “column player,” and, for every cell, the left-most number is the utility that player 1 obtains from the corresponding (pure) strategy profile and the right-most number is the utility that player 2 obtains from the corresponding (pure) strategy profile. (a) Find the pure-strategy Nash equilibria of this game. (b) Find the other Nash equilibria of this game.1) Define Cartel and give an example. 2) Thelma and Louise are being charged for a murder/robbery. They are separated by police and interrogated. They are given the choice to confess or not to confess. The payoff matrix below identifies the years that they will each spend in jail, for the various outcomes. Louise Confess Don't Confess Confess (2 10,10 15.2 Thelma Don't Confess 2,15 3,3 a. Identify the Dominant Strategy for either player, or state that there isn't one. Remember, a "Strategy" is the players move. In this example, state "Confess" or "Don't Confess" for each player, not the payoff. b. Identify the Nash Equilibrium.
- 10. Here's another game that has interested researchers, especially those of the type who work in the Max Gluskin House on campus at UofT. It's also a two-player game, but this time the payment is integral to describing the game. There is no direct Researcher involvement in the game, other than potentially as the source of a payout. For the sake of describing the game, imagine that Anson and Kanav are our two players and that they are playing the game virtually via Zoom for bitcoins, denoted B. There are always two piles of bitcoin in play: a larger one and a smaller one. Ahead of the game Anson and Kanav decide the maximum number 2n of turns, for some n E N greater than or equal to 1. • During the first turn the large pile of bitcoin has 4 Band the smaller pile of bitcoin has 1 B. Anson can either take the bitcoin or pass. If Anson (4 B) takes the bitcoin he gets the larger pile, Kanav gets the smaller pile (1 B) and the game ends. If he passes, the size of each pile is doubled. • Now…Assume that Facebook and Linkedin Companies have to decide whether to invest in the development of application. If they both develop successfully the new application, their profits will increase by 10 million a year. If only one develop the application, it will make 50 million a year in additional profits, whereas the profits of the other firm will drop by 15 million a year. If no firm develops the screen, the profits of the companies remains same which is 10 million. Based on given information, construct Matrix Representation of Facebook and Linkedin Companies game. In addition, based on given information, construct decision tree (Facebook choosesfirst)Boeing and Airbus have to decide whether to invest in the development of a Super Jumbo for long distance travel; if they both develop successfully the new plane, their profits will drop by 50 millions a year; if only one develop the Super Jumbo, it will make 80 millions a year in additional profits, whereas the profits of the other firm will drop by 30 millions a year; if no firm develops the plane, nothing changes. Based on giveninformation, construct Matrix Representation of Boeing and Airbus Companies game
- Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. If Megan offers a discount, Martha should ________. If Megan offers no discount, Martha should ________. A-not discount; discount. B-not discount; not discount. C-discount; not discount D-discount; discount. E-indeterminateC D C D 2, 2-3, 3 3, -3 1, 1 For the following parts, suppose this game is played for infinitely many times with discount factor for both players & € [0, 1). 6. Let both players adopt the following strategy: start with cooperation; cooperate if both players cooperated or both players defected in the previous period; defect if one player defected and another player cooperated in the previous period. In other words, the punishment for deviating from cooperation only lasts for one period, and both players revert to cooperation immediately after. What is the condition on d for this strategy profile to be a SPNE? (a) 8 > 0 (b) 8 ≥ 1/4 (c) 8 > 1/3 (d) 8 > 1/2 (e) There is no d underwhich an SPNE can be supportedConsider the following network representation of a transportation problem. 60 60 Des Moines 25 15 Jefferson City 9 8 Kansas City 20 8 10 40 Omaha 26 St. Louis 55 Supplies Demands The supplies, demands, and transportation costs per unit are shown on the network. What is the optimal (cost minimizing) distribution plan? Amount Jefferson City-Des Moines 0 0 Jefferson City-Kansas City 5 45 Jefferson City-St. Louis 55 440 Omaha-Des Moines 25 Omaha-Kansas City 15 Omaha-St. Louis Total 0 0 Cost ×