... oth firms bid $130 million. e firm bids $120 million, the other firm bids $130 million. th firms bid $60 million. oth firms bid $120 million.
Q: what is the mode of production of "depostic"?
A: The mode of production refers to the way of generating output using input resources like raw materia...
Q: Subsidy granted to the hog raisers in Bgy. Silang Cavite by LGU Identify the statement above if ...
A: GOVERNMENT BANK In order to provide subsidies to the people and creating a farm subsidies, it is th...
Q: Consider a firm that enjoys economies of scale. • If this firm wants to produce 25% more output, it ...
A: In a market, economies of scale refers to the situation when a firm is experiencing an inverse conne...
Q: Assuming a 10 pcrcent interest rate compounded continuously, what is the present valuc of an annuity...
A: [a] Present value off annuity for the next five years:-PV = $500/[1+10%]^1 + $500/[1+10%]^2 + $500/[...
Q: revenues per month 27,000 costs: erchandise sold $ 17,000 cashier, stock, and delivery help 2,500 ut...
A: Explicit expenses are the direct expenses of working a business, for example, expenses of natural su...
Q: Which of the following statements are true about this natural monopoly? Check all that apply. The ca...
A: a) At profit maximizing level:- MR=MC Therefore;
Q: ee is $4. 1. The money supply per person is $2000. What is the value of the nominal interest rate? W...
A: Calculation interest rate of equilibrium:- Formula is :- TC = (I*Y/2N) + F*N Here, Total Cost = F*i ...
Q: What are the official measures of money? Item Sbillions Are all the measures really money? Non-chequ...
A: An official measure of money refers to measures of money that determines the level of money supply i...
Q: Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open...
A: As we know that fixed cast of the expenditure incurred on fixed factor which is not changeable as in...
Q: The following organization was established in 1953 by Garry Davis and distributed world passports to...
A: World government of world citizens: It provides the opportunity to travel worldwide by providing a p...
Q: The number of users of a certain website (in millions) from 2004 through 2011 follows. Year Period U...
A: Time Series is the collection of observations of various data items obtained through various measure...
Q: emand for domestically produced steel to increase. one or both of the curves on the following graph ...
A: Equilibrium is achieved at the output level where Ls equals Ld
Q: In the above figure, the left hand side graph represents a perfectly competitive industry and the gr...
A: Perfect competition is an ideal type of market structure where all producers and consumers have full...
Q: Consider a monopoly with the following marginal cost and demand curves: MC = 2Q + 200, p = 2,600 – 2...
A: For first price discrimination, the monopoly firm is able to charge prices equals to the consumers w...
Q: Consider the following payoff matrix, where the first entry in each cell is the row-player's payoff....
A: Introduction In payoff matrix each player choose best strategy so that he can get maximum payoff. It...
Q: explain the reason why, the more developed a country is, the bigger business sector engaged in servi...
A: Concepts: 1)A developed country is an economy that enjoys a higher level of income and a better sta...
Q: 1. You work for a beer company. Your boss wants to increase yearly sales by 5000 liters. To reach th...
A: 1) It is given that the price and the demographic composition of market is constant. Hence these two...
Q: The real interest rate is 6 percent a year and the income tax rate is 50 percent. With no inflati...
A: Given real rate of interest = 6 % Income tax rate = 50 % Inflation rate = 0
Q: What type of economists believe that markets naturally self-correct, and will reward good strategies...
A: The fundamental theory of Classical economy is that the economy has the ability to eliminate (or sel...
Q: Consider the long-run equilibrium output, the potential output, the full-employment output, and the ...
A: The quantity of goods and services that are being produced in an economy during a given time span is...
Q: For conscious parallelism to be proven, each manufacturer should be found to have acted on its own. ...
A: We show that Conscious parallelism it is the a price strategy that involves chànging the prices of ...
Q: Suppose that the market demand for a certain product is given by P = 670 – Q. where Qis total indust...
A: Introduction Here market demand has given. P = 670 - Q Here are three firms, so market demand can be...
Q: Jane is the general manager at a new café and wants to hire a few baristas. The going rate for baris...
A: Jane would generally pay $9.55 per hour as this is the price that is already prevailing in the marke...
Q: A bank quotes an interest rate of 4.5% per annum with quarterly (four times a year) compounding. Wha...
A: a. The rate of continous compounding = 4In1+0.0454 =0.045
Q: ntidade Be the production function Q (K, L) -2 (K+41, which depends on the quantities Used from the ...
A: Introduction We have given a production function Q (K, L) = 23625 (K1/4 + 4 L1/4)4 Here (K,L) = (2,4...
Q: 3. A person invests 4,500 in the hopes of receiving a return in eight years. What amount, in pesos, ...
A: The value of an item at a future period is called future worth or future value.It is basically the p...
Q: Applicant should be evaluated on the basis of their qualification and work experience, this will avo...
A: A code of ethics and professional conduct explains the ethical standards that guide a company's or o...
Q: If a process is in control, there is no natural variations in that process. True False
A: When the process is in statistical control then it is said that the process is in control. In the p...
Q: Question Three In the market for Corn kenkey (INFERIOR GOOD), consumers’ income has decreased. In th...
A: Here, it is given that Corn Kenkey is an inferior good and there is a change in consumer income as w...
Q: In this Decision Point you learned a little about inflation and inflation expectations. Apply what y...
A: Real wage is the wage rate adjusted for inflation. Nominal wage does not account for inflation.
Q: An investor bought stock for $40,000. Fourteen years later, the stock was sold for $50,000. If inter...
A: The inflation rate that is measured by taking into account inflation is referred to as the nominal i...
Q: What are deposits and the money supply if the required reserve ratio is 50% and reserves are 5,000 w...
A: The money multiplier is inversely related to the required reserve. It means as the required reserve ...
Q: There are two firms in a homogenous product market described by the demand function P(q1,q2)=131-(1/...
A:
Q: O b) When he consumes zero amount of good 2, his MRS12 is equal to 1
A:
Q: 700 600 600 + + EOQ 3 4 ID i = 5% co. monthly
A: Introduction We have given a cash flow. Let's solve at first for x Present value = future value(1 + ...
Q: Which of the following statements is correct? Multiple Choice If supply decreases and demand decre...
A: Equilibrium occurs where quantity demanded equals quantity supplied, that is at the intersection of ...
Q: QUESTION 32 Reasonable uses of debt include all the following EXCEPT O a. to purchase a car. O b. to...
A: Debt basically refers to the amount that is taken by an businesse organization for some duration of ...
Q: 4. Consider the case where countries are free to specialize and trade. In the table below calculate ...
A: Opportunity cost is the next best alternative choice.
Q: Supply as a function of the price of inputs and technology? Comment
A:
Q: A decrease in money supply growth will cause the: LRAS curve to shift to the left. AD curve to shift...
A: Answer -1 A drop in the money supply is accompanied by a corresponding decrease in nominal output, ...
Q: If wages fall, then the short-run aggregate curve shifts to the
A: In an economy, wages refers to the amount of money earned by the people when they provide their effo...
Q: In Bismarck systems, patients are charged premiums based on their risk rating. True False
A: The Bismarck Model is a limited health-care system in which patients pay a fee to a fund, which then...
Q: What is the definition of Total Revenue and Marginal Revenue
A: In economics, total revenue and marginal revenue both terms are used.
Q: manufacturer!s total cost is C(x) = 0.1x3 - 0.25x2 + 300x + 100 dollars, where x is the level of pro...
A: We calculate the total cost with x=6 and x=6.1 and then see the difference. TC(6) = 0.1(6)3 - 0.25(6...
Q: Question 3 The US and France each have 100 hours of Jabor to allocate between producing cheese and b...
A: Opportunity cost can be defined as the benefit that has been forgone of the next best alternative op...
Q: IS curve: r = 30.30-0.0015Y LM curve: =Y - 500(r + n°) SRAS curve: Y = Y + 100(P – P°) The nominal m...
A: The IS-LM model describes how aggregate markets for real goods and financial markets interact to bal...
Q: Difference between perfect market and imperfect market? The answer should be brief, concise and stro...
A: Perfect market- The perfect market will be a market that is organized to have no inconsistencies tha...
Q: Problem 4: A cutting-edge product of Continental Fan had the following net cash flow series during i...
A: The internal rate of return (IRR) calculates the time value of money. When you calculate the rate o...
Q: True or False 1. If a specific forest ecosystem service can be substituted with a physical structure...
A: Economic value is the value that a person assigns to an economic good based on the benefit that the ...
Q: Year BTCF (Marginal cost) 1 %24
A: Substitution/Replacement includes eliminating liquefiable material from the site and supplanting it ...
Step by step
Solved in 2 steps
- Consider the game shown below. In this game, players 1 and 2 must move at the same time without knowledge of the other player’s move. Player 1’s choices are shown in the row headings (A/B), Player 2’s choices are shown in the column headings (C/D). The first payoff is for the row player (Player1) and the second payoff is for the column player (Player 2). Player 2 Player 1 C D A 8, 3 2, 4 B 7, 4 3, 5 Pick the correct answer: Player 1: Has a dominant strategy to choose A Has a dominant strategy to choose B Has a dominant strategy to choose C Has a dominant strategy to choose D Does not have a dominant strategy Player 2: Has a dominant strategy to choose A Has a dominant strategy to choose B Has a dominant strategy to choose C Has a dominant strategy to choose D Does not have a dominant strategy The Nash equilibrium outcome to this game is: A/C A/D B/C B/D There is no pure strategy Nash equilibrium for this gameConsider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero). The cooperative outcome in this situation is Select one: A. one firm bids $100, the other firm bids $180. B. both firms bid $90. C. both firms bid $100. * D. both firms bid $50. E. both firms bid $180.Suppose that there are only two firms in a market in which demand is given by p = 64 - Q, where Q is the total production of the two firms. Each firm can choose either a low level of output, qL = 15, or a high level of output, qH = 20. The unit cost of production for both firms is $4. Write down the normal-form representation of the game in which the strategic variable for each firm is the quantity of output and the firms make their choices simultaneously. Find the pure strategy Nash equilibrium of this game (quantities produced and market price).
- Industrial Organziation game - Business Strategy & Game theory Consider a game with competitive for market-share in a large region (a country or city). Firm 1 initially makes a decision to either compete in the Eastern (E) or Western (W) part of a region, or to opt out entirely (O). Once this decision has been made, Firm 1 and Firm 2 (who is already present in the region) simultaneously make a decision to be aggressive (A) or passive (P) in the region. Denote actions in the Eastern region without a prime (i.e. A and P) and those in the Western region with a prime (i.e. A` and P`). We'll make the following assumptions about these firms - If Firm 1 opts out, its payoff is 8 and the payoff for Firm 2 is 12 If Firm 1 ENTERS the Eastern region both firms receive 9 if both are AGGRESSIVE both firms receive 6 if both are PASSIVE if one plays AGGRESSIVE and the other plays PASSIVE, the aggresive firm gets 5 and the passive firm gets 2 If Firm 1 ENTERS the Western region…Untied and Air ’R’ Us are the only two airlines operating flights between Collegeville and Bigtown. Each airline can charge either a high price or a low price for a ticket. The accompanying matrix shows their payoffs, in profits per seat (in dollars), for any choice that the two airlines can make. Suppose the two airlines play a one-shot game—that is, they interact only once and never again. What will be the Nash (noncooperative) equilibrium in this one-shot game? Explain why this is the likely outcome. Now suppose the two airlines play this game twice. Each airline then considers the future and decides on a “tit-for-tat” strategy, that is, it starts off charging the high price in the first period, and then in the second period it does whatever the other airline did in the previous period. If both play this…Consider the following game matrix with two players- Player 1 and Player 2 with their respective strategies. Which of the following statements is correct such as x>y>b>a Players Player2 Player 1 A B C D (Y, Y) (b, x) (x, a) (AE) is the one of many Nash equilibria (C) is the unique Nash equilibria (C. D) is the unique Nash equilibria (A. E) and (B. F) are two Nash equilibria E (a, b) (x, y) (y, a) F (a,x) (a, b) (b, b)
- Consider the same Stackelberg game with three firms as described by the previous question. Firm 1 chooses the quantity of its production first, then firms 2 and 3 choose their quantities simultaneously after observing firm 1's quantities. Suppose that they produce the same product with different cost functions. Firm 1's total cost is C (41) = 10q + 10. firm 2's total cost is C2 (92) = 892 , and firm 3's total cost is C3 (93) = q³. The firms produce identical goods and the market price is P (g1: 2, 43) = 300 – 91 – 2 – 93- In the subgame-perfect equilibrium, firm 1 chooses q1 firm 2 chooses q2 firm 3 chooses q3 = (Please round your answer to 3 decimal places if your answer contains a fraction. E.g., write 0.333 if your answer is a 1/3 and write 1 if your answer is 1.)AirTrain and BigJet are considering starting a nonstop service from Pittsburgh to Las Vegas. Assume that no other airlines serve this route. Market demand is such that if there is one airline serving the Pittsburgh to Las Vegas route the profit will be $20000. If two airlines serve the route, each will lose $5000. If an airline chooses not to enter this market, their profit is $0. Illustrate the game in normal (matrix) form, if the decision must be made simultaneously. Find the pure strategy Nash equilibriaRefer to the normal-form game of price competition in the payoff matrix below Firm B Low Price High Price Firm A Low Price 0, 0 50, −10 High Price −10, 50 20, 20 Suppose the game is infinitely repeated, and the interest rate is 20 percent. Both firms agree to charge a high price, provided no player has charged a low price in the past. This collusive outcome will be implemented with a trigger strategy that states that if any firm cheats, then the agreement is no longer valid, and each firm may make independent decisions. Will the trigger strategy be effective in implementing the collusive agreement? Please explain and show all necessary calculations.
- if Y = 4 (a) If ⟨a,d⟩ is played in the first period and ⟨b,e⟩ is played in the second period, what is the resulting (repeated game) payoff for the row player? (b) What is the highest payoff any player can receive in any subgame perfect Nash equilibrium of the repeated game?Is there a Nash Equilibrium for this game? If so, what is it? O The Nash Equilibrium is for both first to choose the high price. O The Nash Equilibrium is for both first to choose the low price. O The Nash Equilibrium is for Chevron to choose the high price while Shell chooses the low price. O The Nash Equilibrium is for Shell to choose the high price while Chevron chooses the low price. O There is no Nash Equilibrium for this game.Consider a two-player game in which the players take turns, with player 1 moving first. When it is a player's turn, she must announce a number between 1 and 3. The announced number is added to the previously announced numbers. The player who announces the number such that the sum of all announced numbers is 6 wins (receives 1) and the other loses (receives 0). Please indicate whether or not each of the following sequences of announcements is a Nash equilibrium of the game. Hint: Think about how one verifies whether or not a pair of strategies is a Nash equilibrium. P1 says 3, then P2 says 2, then P1 says 1 P1 says 1, then P2 says 3, then P1 says 2 P1 says 2, then P2 says 3, then P1 says 1 P1 says 3, then P2 says 1, then P1 says 2