Answer in step by step with explanation.Don't use Ai. tionTable B. A Smalltown has 150 residents and two pizza stores: domino's pizza andpizzahut. Each firm's costs: FC = $0, MC = $10. The market demand is representedby the following table.PriceQuantityProfit (Price - MC) x Quantity40303545306025752090151051012051350150Refer to Table B. What is the Nash Equilibrium?each store makes 75 pizza and charges $25each store makes 45 pizza and charges $20each store makes 90 pizza and charges $20each store makes 35 pizza and charges $25

Answered: Image /qna-images/answer/66e0199a-b174-414e-a90f-37a124467138.jpg

Answered: tion Table B. A Smalltown has 150…

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elasticity And Its Application

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.edu/courses/54719/quizzes/73384/take/questions/1152078 B Use the Payoff Matrix below to answer the question that follows. 1. Two coffee shops: Café A and Café B, located in opposite corners of a college town, are evaluating two strategies: to spend low on advertising or to spend high on advertising. The payoff Matrix below shows the daily profits associated with each strategy for each firm. The lower entry in each cell indicate Café B's daily profit and the upper entry in each cell indicate Café A's daily profit. Low Spending Café B High Spending Low Spending $220 $200 Café A $200 $170 $90 $180 High Spending $300 (a) Does Café A have a dominant strategy? If so, identify it and explain. (b) Does Café B have a dominant strategy? If so, identify and explain. $250 Time Running Attempt due: Ma 1 Hour, 0 Mir
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10
May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)
Food prices in sports stadiums are notoriously high because there is a limit on the numberof vendors that can operate in the stadium, which is a barrier to entry. In 2017, the AtlantaFalcons, an American football team, lowered the barriers to entry by allowing more foodvendors into their stadium. If the market for food in the stadium follows our perfect marketassumptions, what might you expect happened after this change? Do not worry about theunderlying facts of each statement, only whether it makes economic sense given our model.(Select one or more.)(a) The price of food in the stadium decreased because of an increase in supply.(b) The price of food in the stadium decreased because of an increase in demand.(c) The quantity of food sold decreased because of a movement of the supply curve.(d) The quantity of food sold increased because of a movement along the demand curve.(e) Profit per vendor decreased because of lower food prices.(f) Profit per vendor increased because of greater…
You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What is BurgerDeals TFC?
un x SCC PortalGuard -SCC Portal Lo X Assignments: Microec onomics Chapter 12 HW ect.mheducation.com/flow/connect.html Saved In the News: What's Behind Starbucks' Price Hike? The Coffee Company Will Raise Drink Prices in October, Even as Other Chains Crowd the Market with Similar (and Cheaper) Products Starting on Cctober 3, the prices on lattes, cappuccinos, drip coffee, and other drinks will go up 5 cents at company-operated stores in North America. Starbucks is also jacking up the price of its coffee beans by roughly 50 cents per pound, or an average of 3.9 percent. The timing is certainly odd. For a while now, Starbucks has been struggling with labor disputes. Rivals McDonald's, Dunkin' Donuts, and Canadian restaurant chain Tim Horton's are steaming into its turf.... A Confident Company If Starbucks were really worried about any of these issues, the last thing its senior execs would consider is a price hike. In fact, Starbucks' dominant market position gives it unique pricing…
a The firm represented here produces an identical product (bagels), in which entry and exit into its market is very easy. If the current equilibrium price is $1.80, the firm will produce. charge a price of c. Its profit or loss will be price of bagels fall to $1.00. Now, the firm will produce. equilibrium price of $1.00 will be. the firm will produce. bagels. b. The firm will d. Suppose the equilibrium bagels. e. Its profit or loss at the bagels. f. Suppose the equilibrium price of bagels fall to $0.25. Now, g. Its profit or loss at the equilibrium price of $0.25 will be The firm represented here produces an identical product (bagels), in which entry and exit into its market is very easy. Total Output/Day Cost 0 $1.00 1 2.50 2 3.50 3 4.20 4 4.50 5 5.20 6 6.80 7 8.70 8 10.70 9 13.00
What is the Nash equilibrium?
Suppose that the market for polos is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Esc 50 PRICE (Dollars per polo) 78°F Sunny 45 40 F1 35 30 25 20 15 10 5 0 + 0 + 2 F2 MC -0- + 4 ATC AVC 6 8 10 12 14 QUANTITY (Thousands of polos) F3 0+ F4 69 16 18 F5 20 a F6 i I F7 4- F8 Q+ H F9 F10 FO F11 F12 Fn Lock Ins
Consider trade relations between the United States and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows a. What is the dominant strategy for the United States? For Mexico? Explain. b. Define Nash equilibrium. What is the Nash equilibrium for trade policy? c. In 1993, the U.S.Congress ratified the North American Free Trade Agreement, in which the United States and Mexico agreed to reduce trade barriers simultaneously. Do the perceived payoffs shown here justify this approach to trade policy? Explain. d. Based on your understanding of the gains from trade (discussed in Chapters 3 and 9), do you think that these payoffs actually reflect a nation's welfare under the four possible outcomes?

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