In the Lindahl model, if player 1 is honest and player 2 maximises his utility which of the following is true Player 2 has a higher utility than if both players had been honest. The level of public good provided is more than that implied by the Samuelson rule. Player 1 consumes more public goods than player 2.
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- Help meThe movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: 92-87-0.3p₂. The total costs for the movie theater depend on the total number of tickets sold, q₁+92, and are given by the following total cost function C(q₁+92)=(91+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. How many movie tickets will domestic students buy (9₁)? How many movie tickets will international students buy (9₂)?The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: 92-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, q₁+92, and are given by the following total cost function C(q₁+9₂2)=(91+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. If this is the case, then how much will the movie theater charge to domestic students (p.)? How much will the movie theater charge to international students (P₂)? Note: You should round all…
- The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p2 cents, the number of movie tickets that international students are willing to buy per year is given by: 9₂-87-0.3p₂. The total costs for the movie theater depend on the total number of tickets sold, 9₁+92, and are given by the following total cost function C(q₁+92)=(9₁+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. The movie theater's management receives too many complaints from students about the fact that they charge different prices to domestic vs international students, so they are forced to charge…In experiments in which participants voluntarily contribute to the provision of a public good, we often find a reduction in contributions in successive rounds of the experiment. We can explain this as A) Evidence of participants reaching satiation and not wanting such high levels of the public good. B) Evidence of participants reducing cooperation to punish free riding. C) Evidence of participants working out the Nash equilibrium outcome of the voluntary contribution game. D) Evidence of participants learning how to play the game more effectively.The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: q₂-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, 9₁+92, and are given by the following total cost function C(q₁+q₂)=(9₁ +9₂) ². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. How do the cinema's profits change with this new pricing strategy? In other words, how much are the profits with uniform pricing, minus the profits with differentiated pricing?
- There are two firms, whose production activity consumes some of the clean air that surrounds our planet. The total amount of clean air is K > 0, and any consumption of clean air comes out of this common resource. If firm i ∈ {1, 2} uses ki of clean air for its production, the remaining amount of clean air is K − k1 − k2. Each player derives utility from using ki for production and from the remainder of clean air. The payoff of firm i is given by ui(ki , kj ) = ln(ki) + ln(K − ki − kj ) j ≠ i ∈ {1, 2}. (a) Assuming that each firm chooses ki ∈ (0, K), to maximize its payoff function, derive the players’ best response functions and find a Nash equilibrium. (b) Is the equilibrium you found in (a) unique or not? What are equilibrium payoffs?In experiments in which participants voluntarily contribute to the provision of a public good, we often find a reduction in contributions in successive rounds of the experiment. We can explain this as Group of answer choices Evidence of participants reaching satiation and not wanting such high levels of the public good. Evidence of participants working out the Nash equilibrium outcome of the voluntary contribution game. Evidence of participants reducing cooperation to punish free riding. Evidence of participants learning how to play the game more effectively.Each actor has two possible actions: reduce greenhouse-gas emissions or increase emissions. Each player's payoffs for various combinations of actions are shown in the cells: by convention, the row player (EU)'s payoffs are shown first, and the column player (China)'s payoffs are shown second. Based on this matrix, which of the following statements are true? A.The EU is better off reducing its emissions, but only if China also reduces its emissions B. China is better off increasing its emissions, but only if the EU also increases its emissions C.Both China and the EU are better off increasing their emissions, whatever the other player does D.All of the above E.None of the above
- Tariff Jumping occurs when Group of answer choices Countries raise (and lower) their tariffs in an effort to stabilize the price of a product on the domestic market. A firm buys inputs from domestic firms rather than importing them from abroad over a tariff. A firm that otherwise would have exported to a country instead invests there in order to avoid paying the country’s tariff. A country raises a tariff against a foreign exporter who sells to it below cost.In this plot we model some of the Australian markets targeted by the Safeguard Mechanism (e.g. fossil fuels). On the horizontal axis we have the quantity, and on the vertical axis its price. If there were no externalities the welfare maximizing quantity would be [Select (1)], while [Select (2)] would reflect the true benefit and cost to society. However, this model describes the presence of a [Select (3)] externality in [Select (4)]. Therefore, the welfare-maximizing quantity is [Select (5)] and the deadweight loss is [Select (6)]. If the externality was fully internalized through a corrective tax equal to [Select (7)], then the new market price would be [Select (8)], the new market quantity would be [Select (9)] and society's welfare would be [Select (10)] without the corrective tax. (1) a) Qa b) Qb c) Qc d) none of the above (2) a) Pa b) Pb c) Pc d) none of the above (3) a) positive b) negative c) Neither a positive nor negative (4) a)consumption b) production (5) a) Qa b) Qb c)…Suppose there are four people in the market, two people with u-x1x2 and two people with u=min{x₁,x2}. Suppose everyone has the same income (m₁-m), and p2=1. What is the demand curve of x₁ for the market? Qd=4m/2p1+2m/(p1+4) Qd =4m/(p1+1) Qd=4m/(p1+1) Qd=m/p1 + 2m/(p1+1)