3. (8 points) A taxpayer (of a particular profile) can either comply with the IRS code, or cheat and receive some benefit. The IRS can either audit the taxpayer at a cost or do nothing. If the taxpayer cheats and the IRS audits then the tax payer faces penalty (fine plus possibly jail time) and the IRS receives the fine. The payoff matrix: IRS Audit (q) -50000, 4000 Not Audit (1-q) 1000, 0 Cheat (p) Tax Payer Comply (1-p) -500, -300 0,0 Assume the tax payer cheats with probability p and complies with probability 1 – p, and IRS audits with probability q and does not audit with probability 1 – q. Find the mixed strategy Nash equilibrium. Express probabilities in percentage forms and keep two digits after the decimal point, for example p = 2.34%.

Aa reasonable limitation on time in a non-disclosure agreement would be more than 5 years. True False

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1. Individual Problems 17-1 Malaysia You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, the Philippines, and Singapore as described in the following table:   Success Level Big Mediocre Failure Malaysia       Probability 0.7 0.1 0.2 Units 1,300,000 416,000 0 Philippines       Probability 0.2 0.3 0.5 Units 600,000 360,000 0 Singapore        Probability 0.4 0.3 0.3  Units 1,500,000 750,000 0   The product sells for $20, and each unit has a constant marginal cost of $16. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $500,000. In the following table, enter the expected number of units sold, and the expected profit, from entering each market. Market Expected Number of Units Sold Expected Profit Malaysia     Philippines     Singapore…

25 Y 20 15 10 5 B3, 0 B2 B1 0 12 13 C 13 b 12 5 05. Point (c) compared to point (b) 10 GD 15 (a) represents a higher level of utility. (b) represents the same level of utility, but is less expensive. (c) represents a higher level of utility and is less expensive. (d) represents a lower level of utility but is less expensive. (e) none of the above. 20 L 11 X

Governments often require people to obtain insurance; for example, all drivers are required to carry auto insurance to cover damages to others in the event of a crash. Homeowners are often required by banks to carry insurance on their home.  (a) Why do these requirements exist?    (b) Would they be necessary if people truly recognized the risk they faced?    (c) One characteristic of an overconfident person is that she is continually surprised when what she thought was unlikely or

Question a Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line .   .