Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 6PA
Subpart (a):
To determine
Payoff matrix of classmates.
Subpart (b):
To determine
Payoff matrix of classmates.
Subpart (c):
To determine
Payoff matrix of classmates.
Subpart (d):
To determine
Payoff matrix of classmates.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
You and a classmate are assigned a project on which you will receive one combined grade. (You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation:• If both of you work hard, you both get an A, which gives each of you 40 units of happiness.• If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.• If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.• Working hard costs 25 units of happiness.
a. Fill in the payoffs in the following decision box:
REFER IMAGE
b. What is the likely outcome? Explain your answer.c. If you get this classmate as your partner on a series of projects throughout the year, rather than only once, how might that change the outcome you predicted in part (b)?d. Another classmate cares more about good grades: She gets 50 units of happiness for a B and 80 units of happiness for an A. If this classmate were your partner (but your…
specialize in producing radios? Compasses?
Problem 2
Gary and Diane must prepare a presentation for their economics class. As part of their presentation, they
must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the
required calculation and 10 hours to prepare the slides. It would take Diane 12 hours to do the
calculations and 20 hours to prepare the slides.
How much time would it take the two to complete the project if they divide the
calculations equally and the slides equally?
a.
How much time would it take the two to complete the project if they use comparative
advantage and specialize in calculating or preparing slides?
b.
If Diane and Gary have the same opportunity cost of $5 per hour, is there a better
solution than for each to specialize in calculating or preparing slides? Briefly discuss.
C.
1
2
Chapter 17 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 17.1 - Prob. 1QQCh. 17.2 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17 - Prob. 1QRCh. 17 - Prob. 2QRCh. 17 - Prob. 3QRCh. 17 - Prob. 4QRCh. 17 - Prob. 5QRCh. 17 - Prob. 6QRCh. 17 - Prob. 7QR
Ch. 17 - Prob. 1QCMCCh. 17 - Prob. 2QCMCCh. 17 - Prob. 3QCMCCh. 17 - Prob. 4QCMCCh. 17 - Prob. 5QCMCCh. 17 - Prob. 6QCMCCh. 17 - Prob. 1PACh. 17 - Prob. 2PACh. 17 - Prob. 3PACh. 17 - Prob. 4PACh. 17 - Prob. 5PACh. 17 - Prob. 6PACh. 17 - A case study in the chapter describes a phone...Ch. 17 - Prob. 8PACh. 17 - Prob. 9PA
Knowledge Booster
Similar questions
- Suppose that player 1 (row) and player 2 (column) play a simultaneous game. Player 1 can choose to go out (Go) or stay at home (Stay). Player 2 can then choose whether to buy tickets to the movies (Movie), to the basketball game (Game) or not buy tickets (None). This game is shown below. Player 1(row) Player 2 (column) Movie Game None Go (6, 4) (4, 6) (0, 0) Stay (2, - 2) (2, - 4) (3, 3) What is the Maxi-Min strategy for player 1 and for player 2? Explain why. What are the Nash equilibrium or equilibria for this game? Explain why. What kind of game is this? Argue what is the most likely outcome.arrow_forwardAssume two moms live next to each other and both have one preschooler. They meet each other for the first time and discover that both of them work part-time twice a week. It turns out that both of them have their children attend a child care facility close to home. Furthermore, they each learn that when one mom is working the other is at home and vice versa. One of the moms has an idea and proposes to the other mom that each take care of the other's child while they work. That way they can save money on child care. If they do this, what will happen to the official GDP reported by the government and why? Is society necessarily worse off as a result of this arrangement?arrow_forward2. Cindy and Andy are both workers on a team. At the same time both workers can choose to work on the risky project (R) or the safe project (S). If both choose to work on the R project the payoffs are 5 to Cindy and 4 to Andy. If both work on the S project the payoffs are 4 to Cindy and 5 to Andy. If Cindy works on R and Andy on S, the payoffs are (8, 10) to Cindy and Andy respectively. Finally, if Cindy plays S and Andy plays R, the payoffs are (10, 7). a. What are the Nash equilibria of the game? Interpret your equilibria in terms of a firm using teams. b. Now assume that Cindy can move first and choose which project to work on. Andy observes Cindy's choice before making his choice of either R or S. What are the subgame perfect equilibria of the game? Interpret this sequential game in terms of communication and leadership in organisations.arrow_forward
- Exercise 4.1 Amy and Bill simultaneously write a bid on a piece of paper. The bid can only be either 2 or 3. A referee then looks at the bids, announces the amount of the lowest bid (without revealing who submitted it) and invites Amy to either pass or double her initial bid. - The outcome is determined by comparing Amy's final bid to Bill's bid: if one is greater than the other then the higher bidder gets the object and pays his/her own bid; if they are equal then Bill gets the object and pays his bid. Represent this situation by means of two alternative extensive frames. Note: (1) when there are simultaneous moves we have a choice as to which player we select as moving first: the important thing is that the second player does not know what the first player did; (2) when representing, by means of information sets, what a player is uncertain about, we typically assume that a player is smart enough to deduce relevant information, even if that information is not explicitly given to…arrow_forwardSuppose you have $35,000 in wealth. You have the opportunity to play a game called "Big Bet/Small Bet." In this game, you first choose whether you would like to make a big bet of $15,000 of a small bet of $5,000. You then roll a fair die. If you roll a 4, 5, or 6, you win the game and earn $15,000 for the big bet or $5,000 for the small bet. If you roll a 1, 2, or 3, you lose and lose $15,000 for the big bet and $5,000 for the small bet the game Utility U₂ U₁ BEL 0 11 LATE EE ARTE Are the Small Bet and Big Bet considered fair bets? O Big Bet is fair, but Small Bet is not. No, both are not fair. Yes, both are fair. 20 OSmall Bet is fair, but Big Bet is not. G HA 1 35 D E 1 1 1 1 1 F 1 U 50 Income (thousands of dollars)arrow_forward1arrow_forward
- 7arrow_forwardSuppose that Jason and Chad each are thinking of opening up a diet coke stand on the fourth floor of this building. Suppose that potential customers are evenly spaced on a distance that is normalized to 1. Customers will buy a diet coke from whichever stand requires the least walking. If they are the same distance the customer will flip a coin. This is depicted below. 1/4 1/2 3/4 If Jason is currently at 3/4, what is Chad's best response? a. Just left of 3/4 b. 1/2 c. Just right of 3/4 d. Just left of 1/2arrow_forwardTopic B Problem: Imagine you have two competing athletes who have the option to use an illegal and/or dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gains an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping. However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping. What class concept best describes this situation? Using this class concept, what outcome do we expect from these two athletes? Are there any factors that could change the outcome predicted by this course concept?arrow_forward
- Hacmillan Leaming Christine and Paul are deciding how to split their time between writing music and lyrics for their new album. Their PPF's for 72 h of work are shown. Christine and Paul have to write music for 8 songs and lyrics for 12 songs (4 songs already have music). When they are done, they can go to a private island and relax from all their hard work. It is possible that they will use more than 72 h. Once they start writing lyrics and music, assuming their hired help packs for them and their plane is waiting outside their door, in how many hours can they board the plane to their relaxing island getaway? Christine will write music for Paul will write music for Christine will write lyrics for Paul will write lyrics for h songs. songs. songs. songs. Music written (in # of songs) 1 0 Paul's PPF 1 Christine's PPF 2 Lyrics written (in # of songs))arrow_forwardTable 22-21 Three longtime friends-Linda, Stella, and Lydia are deciding how they will spend their Sunday afternoon. They all agree that they should do one of the three things: go to a comedy club, play soccer, or go to a tennis tournament. They also agree that they will have two pairwise votes to determine how to spend their afteroon, with the majority determining the outcome on each vote. The first, second, and third choices for each person are as indicated in the following table. First choice Second choice Third choice Linda tennis tournament soccer comedy club Stella soccer comedy club tennis tournament Lydia comedy club tennis tournament soccer Refer to Table 23-2. If (1) the first vote pits "tennis tournament" against "comedy club," and (2) the second vote pits "soccer against the winner of the first vote, then the outcome is as follows: ⒸA "Tennis tournament" wins the first vote and "tennis tournament" wins the second vote, so they go to a tennis tournament OB. "Tennis…arrow_forwardJohn and Dave are roommates. When they cook and eat dinner together, they gain 20 utils each. When John cooks dinner alone for both of them, John gains 9 utils, and Dave gains 18 utils. When Dave cooks dinner alone for both of them, John gains 18 utils, and Dave gains 9 utils. If neither decides to cook dinner, they both go hungry and earn 5 utils each.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education