Answer all parts... 2 Suppose hwo oil-producing countries, Country A and Country B, in a $4 bil market are interested in forming a cartol with the goal of colluding -a signedagroement to raise oil prices (and protits) by limiting quantity supplied to a low lovel. Suppose, in oach play of the game, their individual options are eitherto collude (Co)-stick to the low quantity agreement-or to cheat (Ch)-and produce a high quantity, looding the market and capturing additionalrevenues The matrix form is shown in the folowing figureCountry BCoChCo$2,520,54Country ACh$4,50$1,$1a What is Country A's best response to Country B's choice to limit supply (collude)?b. What is the (Pure Strategy) Nash equilibrium of this game if played only one period (be specific as to why)?.c What famous form does this game take?.c is there a Pareto efficient outcome of the game?d. If this game is commonly expected to last for exactly 3 periods, will the two firms be able to sustain collusion? Why or why not?e If this game were commonly expected to last indefinitely, would the two firms be able to sustain collusion? Why or why not?

Nash equilibrium is a concept within game theory where the optimal outcome of a game is where there…

Country A Ch $4,50 $1,$1 a What is Country A's best response to Country B's choice to limit supply (collude)? b. What is the (Pure Strategy) Nash equilibrium of this game it played only one period (be specific as to why)? .c What famous form does this game take? c is there a Pareto efficient outcome of the game? d. If this game is commonly expected to last for exactly 3 periods, will the two firms be able to sustain collusion? Why or why not? e If this game were commonly expected to last indefinitely, would the two firms be able to sustain collusion? Why or why not?

Country A Ch $4,50 $1,$1 a What is Country A's best response to Country B's choice to limit supply (collude)? b. What is the (Pure Strategy) Nash equilibrium of this game it played only one period (be specific as to why)? .c What famous form does this game take? c is there a Pareto efficient outcome of the game? d. If this game is commonly expected to last for exactly 3 periods, will the two firms be able to sustain collusion? Why or why not? e If this game were commonly expected to last indefinitely, would the two firms be able to sustain collusion? Why or why not?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Marketers attempt to measure what are often hidden aspects of a consumer's buying habits in order to determine why the person tends to buy the same brand over repeated purchases rather than competing brands. A person's toward a brand thus consists of the individual's beliefs (the cognitive component), his emotions (the affective component) and finally, the individual's behaviors during the purchase stage. A motivation В attitude C personality D social class
Can you explain how imcome has a negative impact?
A seller can sells 3 diamond rings at a price of $12000 each . If he sells 4, his MR will be $10500. Calculate the price at which he can sell 4 rings.
A T-shirt shop discovers that the WTP of its customers varies by time of day that they arrive at the shop. It conducts further research and gathers the data in the table. Then it decides to sell the T-shirts for $6 and $5 at different times of the day. What are the highest Sales $ that it can make this way? $ type your answer... Time of Day Evening WTP $5 Demand (Units) 100 Afternoon Morning $6 500 $7 50 Nav
ammm. 11
Mililani business owner Selina runs a small hair salon and does laundry on a regular basis to clean uniforms, hair cloths, client robes, and other washables. Selina is running low on detergent and saw the same-sized boxes of Arm & Hammer laundry detergent on sale at two different stores. Sale price of detergent Regular price of detergent Store Store 1 Store 2 $9.98, limit 4, with additional boxes at regular price Buy two get one free, limit 1 free box, with additional boxes at regular price If Selina only has time to go to one of these stores and needs 3 boxes, whose advice is correct? Select the cost of 3 boxes of Arm & Hammer Laundry detergent at Select $15.99 Selina's friend Kimo said that Store 2 would be cheaper and noted that Store 1's regular price is cheaper than Store 2's regular price. Selina's other friend Lani said that it would be cheaper to go to Store 1, pointing out that Store 2's sale price is still higher than Store 1. Would the situation change if Selina needs 5…
A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
Does supply increase/decrease? No, the change in the price of landline phoneservice does not affect any of the nonprice determinants of supply. The supplycurve stays where it is.
As an economist how will you evaluate the income effect on the technology
I A consumer's Marshallian demand for y is given by gy(Pa, Py, I) = —— 3. The price of Py = good y is py 4 and the consumer's income is I = 15. What is ey,py, the consumer's own price elasticity of demand for y? (a) −15 (b) -5 (c) -5/12 (d) −1 (e) -15/16
The regular air fare between Boston and San Francisco is 419. An airline using planes on this route observes that they fly with an average of 236 passengers. Market research tells the airlines’ managers that each $7 fare reduction would attract, on average, 3 more passengers for each flight. How should they set the fare to maximize their revenue?