The president of a remote island nation has closed the borders of this country to international trade because of the COVID-19 pandemic. Prices of goods and services in this country will be governed by what principle? A. Autarky. B. Oligopoly. C. Autonopoly. D. Bertrand collusion equilibrium.
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The president of a remote island nation has closed the borders of this country to international trade because of the COVID-19 pandemic. Prices of goods and services in this country will be governed by what principle?
A. Autarky.
B. Oligopoly.
C. Autonopoly.
D. Bertrand collusion equilibrium.
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- If you add more money to the economy, you might expect to see: More suppliers to meet the demand unleashed by the extra cash A move to oligopoly from the free market as big companies become bigger Fewer suppliers to meet the demand unleashed by the extra cash Drmand move to other products; the extra cash won't affect this supply-demand relationship.You and your rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of GH¢3. If you charge different prices, the one charging the higher price loses GH¢5 and the one charging the lower price makes GH¢5.i. Find the equilibrium when there are no repeated transactions.You and your rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of GH¢3. If you charge different prices, the one charging the higher price loses GH¢5 and the one charging the lower price makes GH¢5.i. Find the equilibrium when there are no repeated transactions.ii. Now suppose there are repeated transactions. How would that change the results?
- Suppose OPEC has only two producers, Saudi Arabia and Nigeria, Saudi Arabia has far more oil reserves and is the lower-cost producer compared to Nigeria. The payoff matrix in the table to the right shows the profits earned per day by each country. "Low output" corresponds to producing the OPEC assigned quota and "high output" corresponds to producing the maximum capacity beyond the assigned quota Which of the following statements is true? OA. The Nash equilibrium is a cooperative equilibrium. OB. The Nash equilibrium is a noncooperative, dominant strategy equilibrium OC. The Nash equilibrium is a collusive equilibrium. D. There is no Nash equilibrium in this game because each party. pursues its dominant strategy. Low output Nigeria High output Low output Nigeria earns $20 million Saudi Arabia Nigeria earns $30 million Saudi Arabia earns $100 million Saudi Arabia earns $80 million High output Nigeria earns $12 million Saudi Arabia earns $75 million Nigeria earns $20 million Saudi Arabia…Question 6 Assume Eric and Kenny control all the Oil in the world. They have agreed to divide the world market with Eric selling 1,200 Barrels and Kenny selling 1,400 Barrels. They have found through experience that the Demand Curve for Oil has the following values, and the following total revenues: Eric Quantity 2,600 Barrels 3,200 Barrels 3,400 Barrels 4,000 Barrels 1,200 Barrels 2,000 Barrels Price $77.75 $56.00 $47.75 $20.00 1,400 Barrels Total Revenue $202,150 $179,200 $162,350 $ 80,000 $93,300 $108,850 $95,500 $66,850 The Missing Value for Kenny is: [Select] Kenny Is there a short-term incentive for Kenny to Cheat? [Select] Is there a short-term incentive for Eric to Cheat? [Select] 2,000 Barrels $67,200 $40,000 $112,000 ?Missing Value? Over the Long-Run are they Likely to Overcome any Hurt Feelings and return to the Agreement? [Select]Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning. a. Cournot oligopoly. b. Stackelberg oligopoly. c. Bertrand oligopoly.
- 1. How would you characterize the strategy for competing internationally that Ford was pursuing prior to the arrival of Alan Mulally in 2006? What were the benefits of this strategy? What were the costs? Why was Ford pursuing this strategy? 2. What strategy is Mulally trying to get Ford to pursue with his One Ford initiative? What are the benefits of this strategy? Can you see any drawbacks? 3. Does the One Ford initiative imply that Ford will now ignore national and regional differences in demand?As the number of firms in an oligopoly industry decreases, the market moves closer to a __________ market. Over the last 60 or so years, the percentage of women with paid jobs has increased significantly. Is this increase in female employment associated with an increase in the demand for labor, or is it associated with an increase in the supply of labor? How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?Assume that the countries of Irun and Urun are the only two producers of crude oil. Further assume that both countries have entered into an agreement to maintain certain production levels in order to maximize profits. In the world market for oil, the demand curve is downward sloping. Refer to Scenario 16-1. The fact that both countries have colluded to earn higher profit shows their desire to keep production levels above the monopoly level of output. below the Nash equilibrium level of output. equal to the Nash equilibrium level of output above the Nash equilibrium level of output.
- Aspen is in house arrest and is not allowed to buy stuff online. She wants a new iPhone and is willing to pay up to $5000 dollars for it. You and I both pay $1000 to buy an iPhone (Assume she only has the option to buy from one of us). Which one of the following statement is true about how much Aspen will pay for the iPhone? Competition between us will lead Aspen to pay 1200 dollars for the iPhone Competition between us will lead Aspen to pay $5000 dollars for the iPhone Aspen will pay exactly $1350 for the iPhone because her demand is inelastic Aspen will pay $5000 dollars for the iPhone, only if we can colludeEconomics Remove flag Anna, Bill, and Charles are competitors in a local market, and each is trying to decide whether it is worthwhile to advertise, If all of them advertise, each will earn a profit of $5000. If none of them advertise, each will earn a profit of $8000, If only one of them advertises, the one who advertises will earn a profit of $10,000 and the other two will each earn $2000. If two of them advertise, those two will each earn a profit of $6000 and the other one will earn $1000. If all three follow their dominant strategy, what will Anna do, and how much will she earn? Select one: a. Anna will advertise and earn $5000. b. Anna will advertise and earn $6000. C. Anna will not advertise and will earn $8000, d. Anna will advertise and earn $10,000.a. In an oilgopoly, the price effect is: the Increase in price from lowering the quantity sold. the increase in total revenue due to the money brought in by the sale of additional units. the Increase in output that comes from raising the price. the decrease in total revenue that occurs because the increase in quantity will push the market price down. b. In an oligopoly, the quantity effect is: the increase in price from lowering the quantity sold. the decrease in total revenue that occurs because the increase in quantity will push the market price down. the increase in output that comes from raising the price. the increase in total revenue due to the money brought in by the sale of additional units. c. In an oilgopoly, when the quantity effect outweighs the price effect: a decrease in output may Increase the firm's profits. an increase in output may increase the firm's profits. keeping output constant and raising price will increase the firm's profits. keeping output constant and…
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