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- Economic efficiency is optimal when the dead weight loss is positive True FalseIf x~y: x is preferred strictly to y. Select one: True FalseNo written by hand solution Cooperation between players in a finitely repeated game is difficult to maintain. Why is this the case? Group of answer choices Each player has an incentive to deviate from the cooperative strategy during the last period of the game. A Nash equilibrium is not possible in finite repeated games. Finite games only work if there are more than 20 periods. Both players are likely to be discovered by the authorities before the end of the game.
- Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…A chemical manufacturer uses chemicals 1 and 2 to produce two drugs. Drug 1 must be at least 80% chemical 2 and drug 2 must be at least 75% chemical 1. Up to 70,000 ounces of drug 1 can be sold at $40 per ounce; up to 50,000 ounces of drug 2 can be sold at $15 per ounce. Up to 65,000 ounces of chemical 1 and up to 42,000 ounces of chemical 2 can be purchased. Formulate this problem as a linear programming model (using algebraic notation) to determine how to maximize the manufacturer's revenue. (You only need to formulate this problem as an algebraic model. No Excel spreadsheet model. No need to solve the model.)If a good is valued at $55,000 by the buyer and $47,000 by the seller, what amount of tax would result in an unconsummated transaction? Group of answer choices the transaction would never take place even if there wasn't a tax a tax of $7,999.99 a tax of $1,500 a tax of $9,000
- The Company wants to level the production mix at the pacemaker. The average daily demand and their variance for the five products in this product family is as shown in the following Table. Product ID A1 A2 B1 B2 B3 C Daily Demand ~ N(mean,variance) (144, 400) (120,400) (48,100) (48,100) (48,100) (24,25) A day is 432 minutes (after excluding paid breaks and lunch) and a pallet holds 12 units of any part. Items A1 & A2 are ordered daily, items B1, B2 & B3 once every three days and item C occasionally. The company keeps finished good stock for products A&B (with a buffer stock to cover 97.7% of demand surges) and produces C on demand. How would you schedule the average daily orders? How many units of stock are you going to keep in the finished goods supermarket? Consider the following demand for Monday: Product ID A1 A2 B1 B2 B3 C1 Monday Orders 168 108 156 0 0 36 Do you have enough stock and the…Given attribute cutoffs of Price = 5, Quality = 5, and Weight = 4, which of the following would be chosen using the disjunctive decision rule? Price Quality Ease of Use Multiple Choice HP HP 5 3 3 Dell Dell Samsung 4 4 3 3 Samsung 5 ны Samsung and Dell would be considered further. 1 Samsung and HP would be considered further.Assume that two collectors, X and Y are in a first prize sealed bid auction for a batch of vintage comic books. X and Y have different valuations (V) for this batch of comic books e.g. VX And VB are between $2000 and $4000. Both collectors know their own V but does not know the V of the other collector. All they know is that the other collector’s V is a uniformly distributed number between $2000 and $4000. Assume risk neutrality for X and Y e.g. expected payoff for X is: (VX – bX)Pr(bX) and expected payoff for Y is (VY – bY)Pr(bY). These collectors will make their bids strategically. Show how X’s bidding strategy is bX = ½ Vx + 1 and Y’s is bY = ½ Vy +1 in a Nash equilibrium.
- No written by hand solutionEXAMPLE 18.3 Micro Pizza Heater: Market Demand A factory renovation is needed to build a compact microwave with a new shape, which will be called the Micro Pizza Heater. The low sales-volume prediction (20,000 heaters per year) has a subjectively estimated probability of 30%. The most likely market prediction is 30,000 units sold per year. The optimistic market prediction (30,000 sold the first year, with annual increases of 5000) has a subjectively estimated probability of 10%. In all cases, the factory equipment and the market will last 5 years. The net revenue will be $10 per microwave. What is the probability distribution for the net revenue?true or false If profit (∏=TR−TC∏=TR−TC) is equal to zero, the entrepreneur has earned nothing for his talent and risk taking.