QUESTION 6If we write possible outcomes as (Utility of A, Utility of B), which of the following outcomes would a Rawlsian social welfare function select:(0, 13)(20, -1)(10, 2)(3, 3)QUESTION 7In the hotelling model, suppose firm 2 locates at 25 meters. Which of the following location choices for firm 1 gives highest profits?85 meters24 meters25 metersQUESTION 8Player 1 chooses between Up and Down. Player 2 observes this, then chooses between Up and Down herself. If both players choose thesame action, they both get a payoff of 1. If they choose different actions, the player with Up gets 1 and the player with Down gets -1. Howmany (pure strategy) Nash equilibria are there in this game?134O O O O O

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QUESTION 6 If we write possible outcomes as (Utility of A, Utility of B), which of the following outcomes would a Rawlsian social welfare function select: O (0, 13) O (20, -1) O (10, 2) O (3, 3)

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Chapter1: Making Economics Decisions

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