3) Use the table below to answer the following questions. Table 1 Bud Light Offer Don't Offer New Ads New Ads B: $100 B: $50 Offer New Ads M: $100 M: $200 Miller Lite Don't Offer B: $200 B: $120 New Ads M: $50 M: $120 Table 1 The marketers of Budweiser Light beer and Miller Lite beer must decide whether or not to offer new advertising campaigns promoting their products. The payoffs in the table are the economic profit made by Bud and Miller. Answer the following questions? a. What is Bud Light Dominant Strategy? b. What is Miller Lite Dominant Strategy? c. Is this game has an equilibrium? what is it? what we usually call this type of equilibrium? d. Is this game can be described as a prisoners' dilemma, chicken or tit-for-tat? 4) Refer to the table below to answer the following questions.

3) Use the table below to answer the following questions. Table 1 Bud Light Offer Don't Offer New Ads New Ads B: $100 B: $50 Offer New Ads M: $100 M: $200 Miller Lite Don't Offer B: $200 B: $120 New Ads M: $50 M: $120 Table 1 The marketers of Budweiser Light beer and Miller Lite beer must decide whether or not to offer new advertising campaigns promoting their products. The payoffs in the table are the economic profit made by Bud and Miller. Answer the following questions? a. What is Bud Light Dominant Strategy? b. What is Miller Lite Dominant Strategy? c. Is this game has an equilibrium? what is it? what we usually call this type of equilibrium? d. Is this game can be described as a prisoners' dilemma, chicken or tit-for-tat? 4) Refer to the table below to answer the following questions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. The role of brand names and advertising Which of the following statements about expenditures on advertising is true? When a firm spends a small amount of money on advertising, this signals that the quality of the good is high. If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising. O When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality. Read the following example and determine whether it illustrates a common critique or defense of advertising. While shopping for soft drinks, Charlotte is trying to determine whether to purchase the generic seltzer or the brand La Crosse. Although she could not notice the difference between the two in a taste test, she buys the higher-priced La Crosse because she has seen it advertised as being "La drink of La Summer." This illustrates a common of advertising.
3. If the price in a market is increased above that at the mid-point along the demand curve, total revenue to the firm will decreases.
6. A fast-food restaurant determines that each 10¢ inc «ase in the price of a hamburger results in 25 fewer hamburgers sold. The usual price for a hamburger is $5.00 and the restaurant sells 300 hamburgers each day. a) Write an equation to model the daily revenue for the restaurant. b) Find the optimal price for a hamburger. c) What is the optimal revenue?
2) Stan bought a car three years ago for $20,000. Recently he got a promotion and is deciding whether to keep his old car or to buy a new one. His dealer told him that the current market price of his old car is $15,000. The car maintenance costs are $1,000 now, and they are going to increase each year by at least $500. Stan compares his old car with a new one that, he calculates, would have an equivalent annual cost of $4 ,100. What is Stan's optimal decision if his current interest rate is 7%?
17. How might advertising lead to a shift in the demand curve? By increasing the popularity of inferior goods By increasing awareness and changing the elasticity of demand By causing demand to become much more elastic By allowing the law of demand and law of supply to reach the market equilibrium
1. Suppose a firm sells a luxury and a budget version of a good. Why might that firm make the budget version of the good extremely low quality?
Please help answer the following questions
6. The role of brand names and advertising Which of the following statements about expenditures on advertising is true? O When a firm spends a small amount of money on advertising, this signals that the quality of the good is high. O when a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality. O If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising. Read the following example and determine whether it illustrates a common critique or defense of advertising. Yakov sees a commercial for a Brand X clothing company that depicts the wearers of the clothes out having a good time with friends. Although he doesn't particularly need new clothes, the commercial prompts him to buy a Brand X t-shirt. This illustrates a common ▼ of advertising.
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3. The effects of price changes on total revenue Edison's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Edison produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Edison faces. As you can see, to sell the additional engine, Edison must lower his price from $105,000 to $90,000 per fire engine. Note that while Edison gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. (Note: Area is shown in thousands.) ICE (Thousands of dollars per fire engine). 150 135…
1. There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 - 2p Qy = 60 - 0.5p Assume that the marginal cost of producing cigarette X is $10, the marginal cost of producing cigarette Y is $8, and that the market for both cigarettes is perfectly competitive. Assume that each pack of cigarette X smoked does $5 worth of health damage to the smoker, and a total of $4 worth of health damage to the smoker’s neighbors via second-hand smoke. Each pack of cigarette Y smoked does $6 worth of health damage to the smoker, and $5 health damage to the smoker’s neighbors. (a) Explain why the public supply curves differ from the private supply curves, and how this represents the externality from second-hand smoke. Highlight the area(s) of your diagram that represents a social loss. (b) Calculate the social loss for both. (c) Suppose the government decides to pursue a Pigouvian solution to eliminate social loss. What's amount of tax or subsidy would the government…