What happens if two producers produce product X and Y and neither of them have comparitive advantage in either of the goods? Does this mean that they will have the same PPC? Also, what happens if a tax results in zero deadweight loss? Do theproducers and consumers split the burden of the tax evenly?
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What happens if two producers produce product X and Y and neither of them have comparitive advantage in either of the goods? Does this mean that they will have the same PPC?
Also, what happens if a tax results in zero
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- Suppose we have 5 people who might attend up to 2 theatre shows at the local theatre. There’s a drama and a comedy. The marginal cost of a seat on any given night is both constant and negligible (you can safely ignore it), so profit maximization and revenue maximization amount to the same thing. Below are the maximum willingness to pay values (a person will pay a price up to that value, but no greater) for a seat for each of the 5 people for the two shows. The theatre is a profit-maximizing firm. What individual ticket price (i.e., the price for anybody attending the show would be the same, but it could be different across shows) would separately maximize profit for each show?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…In late 1991 two firms, Delta Airlines and the Trump Shuttle, provided air shuttle service between New York and Boston or Washington. The one-way price charged by both firms was $142 on shuttle mileage given to members of the Delta frequent-flier program from 1,000 to 2,000 miles, even though actual mileage from New York to either Boston or Washington is about 200 miles. Moreover, Delta also offered an extra 1,000 miles to frequent fliers who made a round-trip day's total to 5,000 miles. Almost simultaneously, Trump changed the frequent-flier mileage it gave shuttle passengers. (It participated in the One Pass frequent-flier program with Continental Airlines and some weekdays and $92 on weekends, with lower off-peak advance purchase fares. In September 1991 Delta increased the per-trip on the same day, raising a possible foreign carriers.) What sorts of changes do you think Trump made? Why?
- Firm A and firm B are battling for market share in two separate markets.Market I is worth $30 million in revenue; market II is worth $18 million.Firm A must decide how to allocate its three salespersons between themarkets; firm B has only two salespersons to allocate. Each firm’srevenue share in each market is proportional to the number ofsalespeople the firm assigns there. For example, if firm A puts twosalespersons and firm B puts one salesperson in market I, A’s revenuefrom this market is [2/(2 1)]$30 $20 million and B’s revenue is theremaining $10 million. (The firms split a market equally if neitherassigns a salesperson to it.) Each firm is solely interested in maximizingthe total revenue it obtains from the two markets.a. Compute the complete payoff table. (Firm A has four possibleallocations: 3–0, 2–1, 1–2, and 0–3. Firm B has three allocations: 2–0,1–1, and 0–2.) Is this a constant-sum game?b. Does either firm have a dominant strategy (or dominated strategies)?What is the…You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashers, frizzles, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of splishy splashers increases by 10%, the quantity of frizzles sold decreases by 26% and the quantity of cannies sold increases by 14%. Your job is to use the cross-price elasticity between splishy splashers and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price…You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 5%, the quantity of frizzles sold decreases by 4% and the quantity of kipples sold increases by 6%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together. Relative to Guppy Gummies Recommend Marketing with Guppy Gummies Cross-Price…
- Please show all work...You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of mookies sold decreases by 6%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price elasticity…You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashies, frizzles, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of splishy splashies decreases by 20%, the quantity of frizzles sold decreases by 22% and the quantity of cannies sold increases by 7%. Your job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price…
- The town of Grayling has 10 thousand residents who produce fish from fish farms and lakes. Each person who works on a fish farm produces 2 fish per day. Each person who fishes in a lake produces 10-X fish per day where X is the number of people (in thousands) who fish in the lakes. If every individual who fishes a lake is charged a tax of T fish, what value of T causes the Nash Equilibrium behavior to produce the largest possible number of fish for the town as a whole? (You can assume that the 'taxes' collected are shared among all of the residents)Which of the following is correct?In one hour of cooking time, Iron Chef Morimoto can make 120 dumplings or 60 empanadas. Iron Chef Flay can make 90 dumplings or 30 empanadas. Which of the following terms of trade would be acceptable to both Iron Chef Morimoto and Iron Chef Flay? Group of answer choices 4 dumplings for 3 empanadas. 1 dumpling for 1 empanada. 5 dumplings for 2 empanadas. 4 dumplings for 1 empanada.
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