Two companies have to choose their prices at the same time, at either high (pH) or low (pL) levels. If both choose high (pH), they will share the monopoly profits of 50 thousand euros. Otherwise, 40 thousand euros will be distributed. If Company 1 chooses high (pH) and Company 2 low (pL), then it will receive zero profits and its opponent will have profits equal to 35 thousand euros. The opposite will happen if firm 1 chooses low (pL) and the other firm high (pH). The Nash balance of the game is formed in the pair of strategies а) рH, рH b) pH, pL c) pL, pL d) pL, pH

Two companies have to choose their prices at the same time, at either high (pH) or low (pL) levels. If both choose high (pH), they will share the monopoly profits of 50 thousand euros. Otherwise, 40 thousand euros will be distributed. If Company 1 chooses high (pH) and Company 2 low (pL), then it will receive zero profits and its opponent will have profits equal to 35 thousand euros. The opposite will happen if firm 1 chooses low (pL) and the other firm high (pH). The Nash balance of the game is formed in the pair of strategies а) рH, рH b) pH, pL c) pL, pL d) pL, pH

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

Do you think perfect indexing is possible? Why or why not?
Consumption/Savings 1000 800 600 400 200 S 0 200 400 600 00 1000 1200 1400 1600 -200 Refer to the graph above to answer this question. What is the value of the MPS? A 0.5. B 0.4. 0.25. D 0.2. E -100. Income
Angela puts $5,000 in a savings account that pays 5 percent per year. The future value of her money one year from now is $ As the interest rate (Enter your response as a whole number.) the future value of Angela's $5,000 savings will increase.
How GNI is calculated?
Please answer fast
CDO's were made from pools of mortgage backed securities. The CDOs used a) the most senior tranches of the MBS b) senior and mezzanine tranches of the MBS c) all tranches of the MBS d) mezzanine and some equity tranches of the MBS
Inflation rate for the developed country (New Zealand).
Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he needed to offer something “special” to make her stay. Wade told Dana that if she continued dating him, he would pay her $10,000 a month. Wade paid Dana for two years when suddenly, for no apparent reason, he stopped the monthly payments. Dana stayed with Wade for another six months, but decided enough was enough and left. She wanted the $60,000 she was owed for the six months; Wade refused to pay her. Is Dana entitled to the $60,000?
Suppose that you eam $250 in year 1 and will ean $448 in year 2. If you borrow money against your future income you will have and additional $400 to spend in year 1, and If you lend all of your current income you will have and additional $280 to spend in year 2. In both years you consume only food which costs $1 per kilogram in each year. What is the interest rate that you borrow and lend at? R= F2 where F is the amount of food consumed this F1 Let your MRS for food in year 1 with food in year 2 be given by the formula year and Fo is the amount of food consumed next year. Calculate your consumption bundie: F1 = F2 = %3! Suppose the interest rate at which you can borrow and lend changes to 40%. Calculate your new consumption bundle: %3D Which interest rate is preferred? O The initial interest rate found in part 1 The new interest rate, 40%
Q17. What is a general partnership in Canada? a) A business owned by two or more individuals with equal shares b) A business owned by two or more individuals with different shares c) A business owned by a single individual d) A business owned by a corporation
discuss efficient portfolios and what information they can provide
What would be the value of consumption if savings is $1300 and the value of Income is $2200.