Bill and Mary sell ice-cream on the boardwalk in Atlantic City. They are competitors. There are two spots available to set up shop on the boardwalk: spot A and spot B. Spot A gets more foot traffic than B. The amount of foot traffic at a spot determines the payoffs of the ice-cream sellers. If one seller chooses A and the other chooses B, then the seller on A gets a payoff of $1500, while the seller on B gets a payoff of $800. If both sellers choose A, then they each get $700. If they both choose B, then they each get $600. Suppose Mary gets to choose her location first and that Bill observes this choice before making his own choice. Which of the following is not consistent with a Nash Equilibrium of this game? 1) Mary chooses A, and Bill chooses B. 2) Mary chooses B, and Bill chooses A. 3) None of the above.

Q: why can't food be used as a form of money?

A: Money is anything which is generally accepted by the people in the economy and used for the purchase…

Q: What are some currencies of great value in a workplace that is in high demand? List at least 3 and…

A: Commonly, the value of different currencies around the global financial market keeps on changing…

Q: Transactions money is sometimes referred to as

A: Transaction money is the amount of money people hold to conduct the day to day transactions like…

Q: Logan has $2,000 in a checking account and wants to buy a new MacBook for $1,100. Logan decides he…

A: Economic rationality suggests that people behave in a rational way, consider all the alternative…

Q: An item that is used as money, but which also has value from its use as something other than money…

A: A commodity has the intrinsic value that can be used as money  and also used as store of value over…

Q: Currency (C) =  800 Reserves (R) =  400 Deposits (D) = 1600   What is the value of the monetary…

A: Monetary base is either held by public as currency or held by the banks as reserves

Q: Q:7 a,b and c

A: We are going to solve for Pure Strategy Nash Equilibrium to answer this question.

Q: Why might it be necessary to reduce consumer spending in order to attain faster economic growth?…

A: Economic growth refers to the increase in an economy's real output derived from an increase in its…

Q: K Uncoventional monetary policy: financial policy and quantitative easing Suppose that the IS and LM…

A: Given information IS function: Y=C*(Y-T)+I*(Y, r+x)+G LM: r=r* C= consumption Y= income level Y= tax…

Q: Consider a bank that has made a large number of loans at a fixed interest rate of 4% and pays 3%…

A: Interest rate on loans = 5% Interest rate on deposits = 4% Net margin = 1%

Q: What would be the value of APS if savings is half that of income.

A: The data presented is that the savings of the household is half that of income.  So if income is Y…

Q: How does the existence of money simplify the process of buying and selling?

A: Money: It is a medium used for exchange.

Q: Calculate the value of APS if Savings is $320 million and income is $420 million

A: The information being given to us is as follows:- Savings = $320 million Income = $420 million We…

Q: In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both…

A: If the CDC announces that tuna causes bacterial infection, it will alter the preferences of the…

Q: What are the key taxes levied which can be collected by state, territory, and local government in…

A: There are the key taxes levied by which can be collected by the state government in Australia that…

Q: One In the News article titled "CDs Not Paying Much" suggests that Multiple Choice O Interest rates…

A: Interest rate:Interest is the amount that you get on the deposits. it can be fixed or compound,…

Q: Which type of lending institute is either federal or state chartered?   Credit unions   Mutual…

A: A financial institution is an institution that gives services that people need to manage their…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.