The Alpha and Beta companies are the only producers of digital cameras. They must both decide whether to invest in a new production process. Therefore, each company must make the decisions to invest or not invest. Profits for both companies are affected by the decisions on what decisions they might make and the payoffs in billions of dollars are given in the table below. Company Beta Invest Do Not Invest Invest $13 $2 $15 $0 Company Alpha Do Not Invest $10 $5 $13 $2 Suppose we have the same payoff matrix except now Company Alpha makes the first move by deciding to go first with the decision to invest. a. Explain the essential difference between games in which moves are simultaneous and those in which moves are sequential. b. Construct (draw) an extensive-form game diagram that summarizes all the information of the game and provide explanations. c. What is the Nash equilibrium for this sequential game? Use your diagram from part b to answer this question. d. Is there a first-mover advantage or first-mover disadvantage in this game? Explain.

The Alpha and Beta companies are the only producers of digital cameras. They must both decide whether to invest in a new production process. Therefore, each company must make the decisions to invest or not invest. Profits for both companies are affected by the decisions on what decisions they might make and the payoffs in billions of dollars are given in the table below. Company Beta Invest Do Not Invest Invest $13 $2 $15 $0 Company Alpha Do Not Invest $10 $5 $13 $2 Suppose we have the same payoff matrix except now Company Alpha makes the first move by deciding to go first with the decision to invest. a. Explain the essential difference between games in which moves are simultaneous and those in which moves are sequential. b. Construct (draw) an extensive-form game diagram that summarizes all the information of the game and provide explanations. c. What is the Nash equilibrium for this sequential game? Use your diagram from part b to answer this question. d. Is there a first-mover advantage or first-mover disadvantage in this game? Explain.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 14E

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Google Password Required G Enter your password for "210352" in Internet Accounts. Rapidldenti x CClever | Tea X Content Ch. 14 Read x D Nathan Mej x S Savvas Real iin. A southtexascollege.blackboard.com/ultra/courses/_297686_1/cl/outline?legacyUrl=%252Fwebapps%252Fblackboard%25.r 10 YLQ1 Y1Q Y103 Y1Q4 Y2Q1 Y202 ¥2Q4 Y3Q1 Y3Q2 2) Part A: Why must double counting be avoided when measuring GDP? Provide an elaborate answer with at least one example. Part B: Aggregate Demand (AD) Curve shows the relationship between the economy's price level and real GDP demanded. In other words, real GDP demanded by different groups of buyers, i.e., Consumers (C), Businesses (1), Government (G), and Net Amount by Foreigners (Export - Import), at different price levels give us points on a graph, which are connected to form a curve called AD curve. Review the textbook chapter, and conduct internet research to discuss determinants of AD or factors that shift AD curve. Part C: Following graph shows business…
An investor is pondering on whether to invest in a siomai franchise or in a printing press company. He had his staff analyze the cost benefits that he would get from the two business ventures and they came up with this report. A. The siomai franchise would need Php 800 000 as capital. It has a 60-percent chance of profiting Php 400 000; a 15-percent chance of profiting Php 600 000; and 25-percent chance of losing the capital entirely. B. The paper manufacturing company would need Php 800 000 as capital. It has a 35-percent chance of earning Php 1 000 000 and a 65-percent chance of losing the capital entirely. C. Which between the two business ventures should the investor invest his Php 800 000?
4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.d. How much excess profit is Ted earning?
4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.a. What is meant by the “opportunity cost of capital”?b. Explain why opportunity costs are “real” costs even thoughthey do not necessarily involve out-of-pocket expenses. c. What is the opportunity cost of Ted’s capital?d. How much excess profit is Ted earning?
You and your friend will divide $4. You have agreed to use the following procedure.Each of you will name a number of dollars, either $0, $1, $2, $3, or $4. You will chooseyour numbers simultaneously. If the sum of the amounts is less than or equal to $4, theneach of you receives the amount you named and the rest of the money is thrown away.If the sum of the amounts is greater than $4 and the amounts named are different, thenthe person who named the smaller amount receives that amount and the other personreceives the remaining money. If the sum of the amounts is greater than $4 and theamounts named are the same, then each receives $2. (a)Draw the payoff matrix of this game. Let “you” be the row player and “yourfriend” be the column player.(b) Derive the best reply functions of all players.(c) Find the Nash equilibrium (or all of the equilibria) of this game using thebest reply functions you found in part (a).
Submit All Question 28 of 30 Suppose Jon decides to purchase either a long-term Treasury bond or a share of stock from a company in the Dow Jones Industrial Average. Assume that either one will behave similarly to the average security in their class, and ignore the effect of market conditions. Which security is more likely to lose most of its value in the next year after Jon purchases it? O the probabilities of major loss are the same they are both guaranteed to increase in value the stock the bond Based on historical returns, which security is likely to grow more significantly in value after Jon purchases it? the bond 8:27 PM a 46°F E 4) 12/15/202
You have decided to invest in an open-end mutual fund. You are currently looking at a fund-Washington Premier Fund-in your newspaper. The fund is quoted as: Name NAV Net Chg YTD %RET 36.25 0.15 6.95 Assume that today's opening price of Washington Premier Fund equals yesterday's closing price. If you wanted to make your investment first thing this morning, then you should expect to pay for each share of since it Yesterday, each share of sold for $35.95 $43.50 $36.25 $34.44 $0.15 less $0.15 more $6.95 less $6.95 more If you had $8,000 available to invest, you could purchase than it did the day before, and offers a return of 294 368 assesses a 0.15% fee 276 shares of. is a no-load fund charges a 6.95% fee 221 Your evaluation of the Washington Premier Fund is made easier by the fact that: your investment choices are limited. mutual funds are careful to explicitly state their investment objectives. a mutual fund broker will select a customized mix for you. 0.15% 36.25% 6.95% for the year.
Q 100 200 300 400 500 44₁ 1 600 35 700 44 800 53 900 62 1000 „71 1100 80 1200 89 1300 98 O $68 SRATC, SRATC₂ SRATC, 80 90 130 71 78 116 62 66 102 53 54 88 42 74 60 48 31 38 45 52 59 66 O $53 Use the information in the Table above to answer the following question. The LRATC for Q = 900 is 38 units O $38 6 None of these answers is correct 30 68 units 18 32 44 56 68 80 92 SRATC4 140 131 122 113 104 95 86 77 68- 59 50 52 54 O not enough information to calculate
O Chapter 14 + A Not secure | learninghub.upm.edu.my/blastdk/pluginfile.php/161772/mod_resource/content/2/ECN%203014%209_Monetary%20Policy%20and%20Federal. E Apps 4 Marketing Strategy. NGDATA | How to R.. G how to keep custo... W Promosi Dalam Pe. e Bijak keewangan da. e OH! My Assignmen. 2 The 4 Ps Definition O Other bookmarks Chapter 14 14 / 29 Principles of Money Supply Determination Currency held by the nonbank public, CU $1,575.9 billion Bank reserves, RE S $2,022.5 billion Deposits, DEP $12,395.1 billion What is the money multiplier? + 9:43 PM P Type here to search G 4») ENG 19/01/2021
Over time, a real depreciation in the value of a nation's currency should result in Select one: O a. exports rising and imports falling. O b. exports falling and imports rising. O c. both imports and exports falling. O d. both imports and exports rising.
(1) Do you think you currently have the disciplineneeded to control your spending in order to free upcash for regular investing? If not, what changes couldyou make? (2) If someone gave you a “hot tip” on astock, how would you go about researching theopportunity before making an investment decision?
Identify the correct statement about Partnership O A. Capital is a challenge to raise ов. partners cannot be held liable for each other's action there may be no personality conflicts O D. None of these