Under Bertrand competition, O the Nash equilibrium is marginal cost pricing (the perfectly competitive outcome) O the Nash eqt dibrium is monopoly pricing there are multiple Nash equilibria O there is no set of strategies that lead to a Nash equilibrium
Q: Suppose Jenny has 16 hours per day to allocate between work and leisure and she earns a wage rate of…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: 1. Use the following information from a fictional economy: Consumption, C= 250 + 0.8 Yd Investment,…
A: "As per the guidelines solution is provided to the first three sub parts of the question." "GDP…
Q: The Cobb-Douglas production function with output Q and capital and labor inputs K and L,…
A:
Q: A marginal tax rate is a) the tax rate paid on a worker's next dollar of income. O b) the total tax…
A: Marginal Tax Rate : The Marginal tax rate can be defined as the the tax rate that is applicable for…
Q: In theory of comparative advantage, which statement is correct O a a country should produce all…
A: The theory of comparative advantage in international trade is given by David Recardo.
Q: If the economy is growing along the same path as potential GDP, the expenditure line will not shift…
A: In the mentioned question, the reaction of expenditure curves asked when there is growth in the…
Q: An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated…
A: Given:- First cost=$25,000 Salvage value=$1500 Recovery period=9 years To calculate:- Book value at…
Q: We define a monopoly as a market with A) one supplier and no barriers to entry. B) many suppliers…
A: A monopoly is when one supplier holds a dominant position in an industry or sector to the extent of…
Q: Assume the demand for labor for each firm is expressed as L = N (# of employees) x HBAR(average…
A: Employees = 30 Average working hours = 6 per day for 180 person-hours Minimum 150 person-hours per…
Q: These are true or false. Need help with both. A bank run occurs when individuals desire to put…
A: A bank is a kind of financial organization that is permitted to accept deposits and provide…
Q: France can produce either 50 units or 80 units of wine per labour hour. Canada can produce either 87…
A:
Q: What does the research and experimentation tax credit do? Group of answer choices A)Generates…
A: Answer: Research and experimentation tax credit: this tax credit can be claimed by the taxpaying…
Q: Break-Even Analysis Jesaki Publishing is planning for a new novel, and figures fixed costs…
A: In business, a break-even point is reached when total costs and total revenues for a certain…
Q: Number of Total Costs of Total Benefits from Total Costs of Total Benefits from Hours Production…
A: The cost that depicts the change in total cost with respect to change in total quantity is being…
Q: In the game shown below, Player 1 can move Up or Down, and Player 2 can move Left or Right. The…
A: Given date , In the game shown below ,Player 1 can move up or down, and player 2 can move left or…
Q: ) A manufacturer sells two products, A and B and had raised the prices of the two products recently…
A: Disclaimer“Since you have asked multiple questions, we will solve the first question for you. If you…
Q: asset that is book-depreciated over a 5-year period by the straight line method has C3 = P 2,800,000…
A: The formula for straight line SL depreciation is given below: d = (P-S)/n Were, P = initial cost, n…
Q: What is the maximum revenue based on this price and quantity? Column 1 Column 2 Column 3 Column…
A: Here, the given table shows marginal revenue and total revenue at different quantity level with…
Q: b. What is the equilibrium GDP for this country? %24 billion c. What is the marginal propensity to…
A: A macroeconomic technique for measuring and evaluating a country's overall economic activity or…
Q: Part B Answer any FOUR (4) questions of the SIX (6) questions. 1. Managerial economic decisions are…
A: Introduction Managerial economics is a very important application or system for any company because…
Q: How does an economic contraction that is caused by a shift in aggregate demand remedy itself over…
A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…
Q: this true, false or uncertain? Use graphs if possible. Following the announcement that the amount of…
A: *Answer:
Q: On September 27, 2015, Koala, Inc. issued a 10 year bond (with a typical $1,000 face value) that had…
A: Answers [1] Face value = $1000 Annual coupon payment = $65 Nominal yield = Annual coupon payment/…
Q: Firm Market Share (%) A 50 B 35 8 D 4 E 2 1 Refer to the data. The Herfindahl index for the industry…
A: "The Herfindahl Index is a measure of market concentration and is used to determine market…
Q: QUESTION 1. Over dinner, your friend mentions an article about a population explosion in Malaysia…
A: According to the Heckscher-Ohlin Model, countries export what they can produce rapidly and in great…
Q: How to allocate limited resources to their best use is the very first and fundamental principle that…
A: Resource allocation based on best practices: 1. Get a realistic picture of demand and delivery…
Q: A perfectly competitive widget firm has this long run total cost equation: LTC = (½)q³ – 6q² + 40q…
A: LTC = (1/3)q3 - 6q2 + 40q LMC = dLTC/dq = q2 - 12q + 40 LAC = LTC/q = (1/3)q2 - 6q +40
Q: Contractionary fiscal policy occurs when the a) government decreases spending or decreases taxes to…
A: The use of the government spending and the tax policies to impact economic circumstances, notably…
Q: A possible reason a nation might impose a restrictive policy such as a tariff is to O a) increase…
A: Imports refer to the incoming of foreign goods into the domestic market.
Q: t 20 additional men. If all men get Php 3.00 per day for a full part day and if the liquid mages are…
A: Given data, 50 men did this job in 30 days, In 20 days the contract will expire. All the men…
Q: Marx argued that paradoxically, increased productivity would cause to rate of profit to _______ over…
A: Producing more goods and services (output) while using fewer resources (inputs) is a measure of…
Q: Please indicate whether you agree with the statement given below and explain why? According to…
A: The Williamson tradeoff model basically refers to a theoretical model in industrial organisation…
Q: he college tuition is expected to increase with an average of 5% per year for the next 5 years. The…
A: We have given a geometric gradient series cash flow, Value of A1=P45,000 % increase in the tuition…
Q: 1. As Lorenz curves cross, less inequality is present in the case where ________. a. we cannot say…
A: As Lorenz curves cross, less inequality is present in the case where ________. a. we cannot say b.…
Q: Economic development is unsuccessful to stabilize population growth in LDCs because of certain…
A: The increase in the number of human beings On the planet is known as population growth.Our…
Q: We are given a utility function in which a household lives for just one period. hl+1/e u(c, h) = c -…
A: * SOLUTION :- Given that ,
Q: Use the IS-LM model to analyze the short run impact of a fall in consumer confidence on the economy.…
A: The LM curve shows income (GDP) and interest rates (i) at which money supply (MS) matches money…
Q: Consider the game shown below. In this game, players 1 and 2 must move at the same time without…
A: In the mentioned question we have been asked the best payoff where both will get their best.
Q: The main responsibility of a Central bank is: O Neither monetary or fiscal policy Both monetary and…
A: Monetary policy is the policy of the Monetary Authority of the country "Central Bank" that aims to…
Q: Among the following options, which of these includes economic arguments about child labor? (choose…
A: Answer: Introduction: It can be observed from the real file situations of people that the children…
Q: Benefits of CDPS for Customer Service base on acceptability of collection and delivery points from…
A: Introduction With the consolidated data contained in the CDP, marketers can create and sustain…
Q: Write the letter of your choice on the space provided before each number. Thus, A – if only the 1st…
A: Disclaimer: Since it is a multipart question, I am providing the answer to the first three parts.
Q: Suppose that the first P300,000 income earned is not taxed at all, the next P500,000 earned is taxed…
A: Introduction Data of income and tax structure has given. Table: Income T(y) tax percentage 0 -…
Q: Suppose that our demand curve is given by P = 5 - 0.1Q. The supply curve is given by P = 1+0.4Q.…
A: Answer; Equilibrium price is $4.2
Q: Which of the following is true about the Federal Reserve System? There are 12 regional Federal…
A: The Federal Reserve System (FRS) is the central bank of the United States. The Federal Reserve, also…
Q: Write the letter of your choice on the space provided before each number. Thus, A – if only the 1st…
A: Progressive tax system is based on the ability to pay the principle.
Q: Generally, those who have higher wages are people with more human capital. Hence, more schooling as…
A: Generally, those who have higher wages are people with more human capital. Hence, more schooling as…
Q: 5.4 In theory, what is the slope (value) of the indifference curve at Mrs. Bain's utility…
A: Answer (5.4) The slope of the indifference curve is called the marginal rate of substitution, which…
Q: Suppose that Sam has a utility function u(x, y)= x+y where x is the amount of good 1 and y is the…
A: The change in demand due to change in the rate of exchange is called Substitution Effect on the…
Q: An asset that is book-depreciated over a 5-year period by the straight line method has C3 = P…
A:
Step by step
Solved in 2 steps
- Kate and Alice are small-town ready-mix concrete duopolints. The market demand tunction is o- 20,000 - 200Pwhere Pis the price of a cubic yard of concrete and Ois the number of cubic yards demanded per year. Marginal cost is sa0 per cubic yard. Suppose Kate onters the market first and chooses her output belore Alice. What is the difference in Alice's profit when Kata enters the market tirst, compared to when they simultanecusly select ther outputa? When Kate entors the markat first, Alice's profit is $3,888.a0 lower. O When Kate enters the market fest, Alice's profit is 513,333.33 lower. O When Kate enters the market first, Alice's profit is $5,000 lower. O When Kate onters the market first, Alice's proft is $1.111.11 higher,1. Find all subgame perfect nash equilibrium 2. Find a nash equilibrium that is not SPNE, and explain why it is not an SPNE.fnan421 Word Gözden Geçir Görünüm Varam V Ne yapmak isted ginzi soyieyin 2) Two firms, X and Y, are planning to market their new products. Each firm can develop TV, Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP PHONE FIRM X TV 30, 30 50, 35 20, 50 LAPTOP 40,70 20, 20 50,80 PHONE 50,20 80,50 10,10 A) Find the Nash equilibria for this game, assuming that both firms make their decisions at the same time. (explain the decision step by step)i B) If each firm is risk averse and uses a maximin strategy, what will be the resulting equilibrium? (explain the decision step by step);
- fnan421 Word Gozden Geçir Górunum Vard m e vaomak sted nz sOv eyin 1) Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP FIRM X TV 30, 30 20, 35 LAPTOP 40,70 20, 20 A) What is the cooperative outcome? B) Which firm benefits most from the cooperative outcome? How much would that firm need to offer the other?10 logging firms use a forest to collect timber. Each firm i must choose how many trees to cut, gj The benefit of cutting a tree is 1000 -2G per tree, where G is the total quantity of trees cut in the forest. The marginal cost of cutting a tree is 10G. Firms do not face any fixed costs. In a Nash Equilibrium, O Each firm cuts 125 trees O Each firm cuts 125/10 trees O Each firm cuts 125/4 trees O Each firm cuts 5 treesFrom the bank of terms match the letter that corresponds to the appropriate concept/description. Bank of terms Letter A Perfect Bayesian Nash equilibrium Bayesian Nash equilibrium Nash equilibrium Competition à la Cournot Competition à la Bertrand В C E Herfindahl index F Perfect competition G Consumer urplus Lerner index H I Principal-agent model Natural monopoly Strategic complements Conjectural variations approach Strategic substitutes J K L M N Concept/description Competition in quantities Price taking behavior Index of maket power Write letter Measure of welfare Solution for a static game with incomplete information Competition in prices Measure of intensity of competition Manager and business owner work relationship Best response functions that slope upwards Estimation of market power
- fnan421 WWord Gozden Geç r Gorunum Varc m Ne yaomak steci gnz soy evn 1) Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP FIRM X TV 30, 30 50, 35 LAPTOP 40,70 20, 20 A) If both firms make their decisions at the same time and follow maximin (low-risk) strategies, what will the outcome be? B) Suppose both firms try to maximize profits, but Firm X has a head start in planning, and can commit first. Now what will the outcome be? What will the outcome be if Firm Y has a head start in planning and can commit first? Ia)Find the Nash equilibrium b)Find subgame Nash equilibrium c) Explain why all Nash equilibrium are not subgame perfect. Please see the image The term in image are A,B b,c and w,a and 1,2,7,9 and 7,3,4,8Suppose that a particular industry has a four-firm concentration ratio of 45 and a Herfindahi index of LS40. Most ikety, this industry would ochieve Mutipie Chaice both productive efficiency and allocative etficency wllocative efficency but not productive effcency nether productive efficiency nor allocative efficiency productive efficiency but not allocative efficiency
- .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 MirOtto has a monopoly on limousine service, and Carla is thinking about Kentenng the market. The outcome of the entry-deterrence game represented by the game tree to the right is that Otto picks the quantity and Carla the market Small Quantity Otto Large Quantity Carla Carla Enter Stay out Enter Otto $50 Carla $50 Otto $90 Carla 50 Otto So Carla -$10 Otto $60 Stay out Carla $0 a CConsider the following price game: Firm 1 Firm 2 High Low High 20, 20 12, 24 Low 24, 12 14, 14 Remark: In simultaneous move games (games with rows and columns) theconvention is to write the row player’s payoff first and the column player’spayoff second. (a) What is the Nash equilibrium of this game? Recall that for each playeryou should find the best response to each of the opponents’ strategies andunderline the associated payoff. Then look for a cell where both strategiesare best responses to each other. This is a Nash equilibrium. (b) Does either firm have a dominate strategy (a strategy that is always abest response)?