(b) Suppose T = 2, and 8 = 1. Can the path ((10, 10), (10, 10)) be implemented in a SPNE?(c) Suppose T = 2, and 8 = 1. Can the path ((10, 10), (4, 4)) be implemented in a SPNE?(d) Suppose T = ∞0, and 8 € (0, 1). For which 8 can the path ((10, 10), (10, 10), ...) be implemented in a SPNE grim triggerstrategies? 3. Consider the same game as in the previous question and suppose both firms choose between three price levels 3, 4, and 10.(a) Suppose T = 2, and 8 = 1. Can the path ((4, 4), (4, 4)) be implemented in a SPNE?

Answered: Image /qna-images/answer/7c5d4a8a-c59f-497f-aa9b-ac2676c2cdc8.jpg

Answered: (b) Suppose T = 2, and 8 = 1. Can the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You are going to earn ωt = $200,000 when working (age 21 and 60), and thenyou are going to live for the next 20 years with ωt = $0. Find the constant level ofconsumption C during years (21-80) that can be financed by your income (Interestrate is 5%). Find the level of savings St = ωt −C for periods t ≤60 and for t > 60
A) State whether the following statement(s) are true/false with justification i) If the model is linear in parameters, but there is non-linear relation between dependent and independent variables, OLS cannot be used. ii) OLS can be applied to estimate a multiple linear regression model, and each slope coefficient shows the full effect of an individual variable on the dependent variable iii) Both slope and intercept will change if dependent and independent variables are divided by factor k (=1000). B) In a left-tailed test where you reject Ho only in the lower tail, what is the p-value if Z = (-) 1.00?
given Q=2P-500 what is P? write down P as a fuction of Q
Your work-out seems different then mine, Is my work-out correct or yours? Greatly Appreciated!!
If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000, what is the maximum profit that can be expected from selling smart phone screen magnifiers? Question 1 options: $ 0, no profit $ 5,617,681 $ 1,717,764 -$ 8,004,171
Assume the relationship between the growth of a fish population and the population size can be represented as g= 8S – 0.2S2, where g is the growth in tons and S is the size of the population (in thousands of tons) a. Given a price of $100 a ton of fish, what is the marginal benefit of smaller population sizes? b. Estimate the population size that is compatible with the maximum sustainable yield. What would be the size of the annual catch if the population were to be sustained at this level? c. If the marginal cost of additional catches (represented in terms of the population size) is MC= 3(120-S), what is the population size that is compatible with the efficient sustainable yield? d. Is there a difference between the maximum sustainable yield you calculated in part (b) and the efficient sustainable yield in part (c)? Why or why not? Explain briefly (in 1 paragraph or less)
Problem 2 Archibald Architecture and Erin's Engineers are two firms that are working together to build a new li- brary for the local community. They must each contribute some amount of resources to the build: Archibald will contribute a units of resources at a cost of a², and Erin will contribute e units at a cost of 2e². The final value of the build is 10(a + e -ae), which Archibald and Erin split equally, so that each receives a revenue of 5(a + e - ae). (a) Write down Archibald and Erin's payoff functions. (b) Suppose that the only resource contribution options available are 0,1 and 2. Archibald and Erin must make their decisions simultaneously without consulting one another. i. Compute the payoffs that correspond to w, x, y and z in the matrix below. Erin 1 5,3 Archibald 0 1 2 0 0, w 4,5 4,3 6,10 y, 3 2 10, x 4, -3 2,-8 ii. Is (0,0) is a Nash equilibrium in this game? Justify your assertion in no more than 25 words. iii. Is a resource contribution level of 2 rationalisable for…
5) Given the following information: Q = 100 * /KL TC = 200L + 50K a) Calculate Q* at both K=10 and K=15. b) Compute AC at Q*.K=10 and AC at Q*, K=15.

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