Consider the following Bayesian game. Player 1 can be of type t e {4, 6) where Pr(t = 4) = 0.6. Player 1 knows his type, but Player 2 only knows the prior distribution of 1's type. Call o4 Player 1's probability of playing A if he is type 4, 06 Player 1's probability of playing A if he is of type 6, and o, Player 2's probability of playing C. Player 2 D Page 2 t 1,0 A Player 1 1,0 0,2 B There is a BNE in which all player types play mixed strategies, and o4 = 06. In it, 04 = 06 = Oe = Make sure you round your answers to 3 decimal places if necessary.
Q: MC=500Q2√Q3+5 (b) Find the total cost function
A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…
Q: escribe the term macro economic
A: The answer is given below
Q: Problem 15-04 (algo) Suppose that Costa Rican worker Carlos can produce either 180 pounds of coffee…
A: a) Carlos's opportunity cost of producing computer:- Opportunity cost=1801…
Q: Sherry has a goal of retiring with $371,060 by making weekly deposits into an investment account…
A: Given future value = $371,060 annual interest rate = 1.6% Weekly interest rate for weekly deposits =…
Q: to people who make over $50,000 and are permanent. Will you work more or less when marginal tax…
A:
Q: What changes occur in the graph of Tina's demand curve as the price of bottled water rises? As the…
A: Answer is given below
Q: Describe how government actions can lead to more efficient outcomes when negative and positive…
A: Externalities are certain benefits or losses accrue to a third person who is not involved in the…
Q: Create a scenario in which a monopoly might form and analyze that monopoly situation. To do that,…
A: When a single corporation controls an industry or a service, it is called a monopoly.
Q: Describe monopoly development and monopoly price-setting strategies Describe how a single-price…
A: 1) Monopoly is when there is only single seller in the market with full control over the market.…
Q: Suppose the equilibrium real interest rate is 5% and inflation rate is 3%. Determine the equilibrium…
A: Real Interest rate = 5% Inflation rate = 3%
Q: According to economic theory, fast-growing countries should be running trade deficits countries…
A: Trade Deficit: The trade deficit arises when the import is greater than the export. For instance…
Q: Discuss the sources and approaches used by McDonald’s in order to stay abreast of the environmental…
A: McDonald's takes a variety of steps to ensure that it is up to date on environmental issues. Global…
Q: Use the information in the table to answer the following questions. All numbers are in billions of…
A: Aggregate spending is the sum of consumption, investment, government spending and net exports in an…
Q: lgs Review view Help 5-7.D(x) = 2(x-3)² is the price, in dollars per unit, that consumers will pay…
A: * SOLUTION :-
Q: 12. A consumer likes two goods, x and y, and has the following utility function, U= 2√√xy. What is…
A: Slope of IC is the MRS where we can find the MRS using the marginal utilities of goods.
Q: Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years…
A: The realistic portrayal of each money related esteem with time is known as cash flow diagram. The…
Q: A chart of accounts is A listing of each general ledger account which is assigned a name and a…
A: A chart of accounts is a list of all financial accounts in a company's general ledger. In a…
Q: 2. The opportunity cost of holding assets as money Suppose you've just Inherited $10,000 from a…
A: Answer; Ans 1) Interest rate =8, opportunity cost= 800 Interest rate= 10, opportunity cost=…
Q: 13. Kruber company located Tennessee considering two different makes of a blow molding machine for…
A: Given: Machine X Machine Y Initial Cost $150K $275K Annual Operating Cost 55K 60K…
Q: ct assortments may be useful: motions will be necessary. ments before entry may be necessary to warn…
A: Compartive advantage alludes to the capacity to deliver labor and products at a lower opportunity…
Q: Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers…
A: A sales representative is trying to sell a company a new accounting system that will reduce the…
Q: rice Question 5 What would happen to equilibrium price and equilibrium quantity of khaki pants if...…
A: The demand curve depicts that there exists an inverse relationship between price and quantity…
Q: What are the determinants of elasticity?
A: Elasticity of demand is a key economic concept that determines how much a variable will change as a…
Q: Is it justified that Russia is invading Ukraine? Why?
A: Relations between these (Russian and Ukrain) two countries have been difficult since the 2014…
Q: What is the usual relationship betweenelasticity and revenue?
A: Total revenue refers to the total amount of money received by the firm by selling the goods and…
Q: Which of the following does not describe a proprietorship? Owned by one person Has unlimited…
A: In a sole proprietary, a person owns the business. Business structures of this kind are the best.…
Q: P 2530 is deposited in a bank at 7% interest. What is the value of the money after 25 years,…
A:
Q: Describe the effect of different types of price discrimination
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: If the Turks and Caicos government sells military hardware to Cuba, the transaction would be…
A: The current account includes all the export and import of goods and services including unilateral…
Q: Milo is the young, likable, optimistic, and generous son of a prominent public official. He has a…
A: * ANSWER :- From the given information the answer is provided below as
Q: Which is a reason for why private banks tend not to use the discount window?
A: The federal rate is the rate at which commercial banks borrow from each other whereas a discount…
Q: If the reserve ratio is 0.5 and no individuals hold currency then the money multip could be as high…
A: Required reserve ratio is the minimum requirement that a bank needs to hold as reserves.
Q: Nora is a runner looking for a new pair of running shoes. She found a pair that looks nice and fits…
A: Utility function : U = (W)0.5 High Quality worth = 256 Probability = 0.75 Low Quality Worth = 36…
Q: Given the magic rectangle (all column sums are equal and all row sums are equal) 4 15 5 3 13 6 7 8 9…
A: This paper examines the (most) improved best-response correspondence proposed by Balkenborg et al.…
Q: 37
A: Market refers to the place where the buyers and sellers sell the product at the given price. It…
Q: Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a…
A: We use: MR=MC Marginal Profit = MR-MC Profit = TR -TC TC = ATC*Q
Q: The total cost function for a product is given by C(x) = 3x3-9x² -243x + 1229, where x is the number…
A: Given cost function C(X)=3X3-9X2-243X+1229TC should be 50000 at least
Q: The Volkswagen investement with Ghana. What are the strategic impacts in terms of foreign exchange…
A: Foreign exchange rate The foreign exchange rate is the rate at which the currency of one country…
Q: Monopolistic competition is like perfect competition in that firms in b market structures do which…
A: In monopolistic competition and perfect competition, there are many buyers and sellers with no…
Q: T chart of Canny bank Assets Liabilities Reserve: $10,000 Demand Deposit: $200,000 Government bonds:…
A: Answer; (a) Money supply has changed by $1,000,000 As per equation of exchange,…
Q: Many trade instruments protect domestic producers at the expense of consumers. Which of the…
A: When a government proclaims itself a rule maker or market regulator, it is expected to intervene…
Q: Starting with a long run equilibrium, a Fed policy insisting on an even higher GDP may lead to a…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: 2. Suppose John has the following demand for coffee per day: Cups of Marginal Coffee Value 1 $8 2 $6…
A: Answer; The maximum amount of membership should be 7 dollars
Q: Answer the following questions about stabilization policy. What do we mean by stabilization policy?…
A: The Stabilization policy can be defined as a strategy enacted by a government or the central bank of…
Q: You've decided to sell sweatshirts for the upcoming game. You project that at a price of $31.24 per…
A:
Q: Randall owns a small bakery. During his first few months in business, he charged $4 for each…
A: "The law of demand in economics states that when price of a commodity rise the quantity demanded of…
Q: Part 4: FOREX Practice- Complete the following. 13. What are the four shifters of the foreign…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Need help with this. If nominal GDP is $100 and the money supply is $25 then money velocity is?
A: Introduction The money velocity is a measurement of how many times an average unit of currency is…
Q: a. Construct the cost-of-living index number for 202 2 the basis of 2019 from the given data.…
A: Cost of Life Index Numbers: Cost of Living Index Numbers are unique index numbers that are used to…
Q: Suppose the money multiplier is 2 and remains constant. If the Fed buys $1,000 of Treasury…
A: Fed is the central bank of United States and is an open market operations committee.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Deborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball drops into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. The expected value of Deborah's bet (after subtracting the $1.00 she bet) is $ Given that Deborah makes this bet, she must be(ii) A mixed strategy profile (p, q) is one in which p = (p,P2.... P) is the mixed strategy of player 1, and q- (g1, q2,..q4) is the mixed strategy of player 2. Show that if p, >0 in a Nash equilibrium profile (p*, q*), the player 2 must also play i with strictly positive probability q'; > 0. (State clearly any theorem you use to show this. You are not required to justify the theorem.) %3DDeborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball drops into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. a) The expected value of Deborah’s bet (after subtracting the $1.00 she bet) is $________________ b) Given that Deborah makes this bet, is she risk adverse, risk neutral, or risk loving?
- Arielle is a risk-averse traveler who is planning a trip to Canada. She is planning on carrying $400 in her backpack. Walking the streets of Canada, however, can be dangerous and there is some chance that she will have her backpack stolen. If she is only carrying cash and her backpack is stolen, she will have no money ($0). The probability that her backpack is stolen is 1/5. Finally assume that her preferences over money can be represented by the utility function U(x)=(x)^0.5 Suppose that she has the option to buy traveler’s checks. If her backpack is stolen and she is carrying traveler’s checks then she can have those checks replaced at no cost. National Express charges a fee of $p per $1 traveler’s check. In other words, the price of a $1 traveler’s check is $(1+p). If the purchase of traveler’s checks is a fair bet, then we know that the purchase of traveler checks will not change her expected income. Show that if the purchase is a fair bet, then the price (1+p) = $1.25.In a mixed strategy equilibrium of the game below, what is the probability with which Player 2 chooses r (if there are multiple equilibria with different probabilities of a, choose any one)? Player 2 y a 3, 3 4, 2 Player 1 b 6,3 2, 6 5. 3 3, 2 Numerical answerBill owes Bob $36. Just before Bill pays him the money, he gives Bob the opportunity to play a dice game to potentially win more money. The rules of this game are as follows: If Bob rolls doubles (probability 1/6), Bill will Bob double ($72). If he misses doubles on pay the first try, he can try again or settle for half the money ($18). If he makes doubles on the second try Bill will again pay-up double ($72), but if Bob misses doubles on the second try Bill will only pay him one-third ($12). Should Bob decide to play the dice game with Bill, or insist that he pay the $36 now? Use a decision tree to support your answer.
- A salesperson is trying to sell cars. The number of cars that she will sell depends on her effort "e" and her luck. Given her effort e, with probability 4e she is able to sell four cars, and with probability (1 - 4e) she is able to sell only one car. Her personal cost of effort is 100e². The dealership pays her a bonus b for each car sold. The salesperson is risk-neutral, and wants to maximize her expected utility, which is her expected income minus her effort cost. a) Given the bonus b, the salesperson's best response function is b) Suppose the dealership pays b = 2. Then the expected number of cars sold will be E(Q)=If Firm 1 chooses to release the console in October with probability of 0.692 or December with a probability of 0.308, then Firm 2 is indifferent between choosing a release date. If Firm 2 released the console in October with probability of 0.50 or December with a probability of 0.50, then Firm 1 is indifferent between choosing a release date Suppose now that instead of choosing the release date at the same time, the firms choose sequentially (but still in advance). Firm A chooses its release date first, then firm B observes that date and chooses its own date. Thepayoffs are otherwise the same as above. Represent the game tree corresponding to this dynamic game.Phil, Stu, and Doug are deciding which fraternity to pledge. They all assign a payoff of 5 to pledging Phi Gamma and a payoff of 4 to Delta Chi. The payoff from not pledging either house is 1. Phi Gamma and Delta Chi each have two slots. If all three of them happen to choose the same house, then the house will randomly choose which two are admitted. In that case, each has probability 2/3 of getting in and probability 1/3 of not pledging any house. If they do not all choose the same house, then all are admitted to the house they chose. Find a symmetric Nash equilibrium in mixed strategies.
- Consider two firms who are engaged in a Research and Development (R&D) "con- test". Both firms simultaneously expend resources to try to win the contest (which may mean developing a superior product or developing a product before the com- petitor). If the two firms expend bị and b2, respectively, on R&D, the probability that firm 1 wins the contest is if b1 = b2 =0 BE otherwise P1(b1, b2) = where r is some exogenous constant, r E (0, 0). If firm 1 wins the contest, it will subsequently earn revenue of 1 (not including the cost of R&D, b1). If firm 1 loses the contest, it will earn zero revenue, and thus lose bj in total. Hence, firm l's expected profit is n'(b1,b2) = p1(b1,b2) - b1. Everything is symmetric for firm 2. i. How does p1(b1,0) depend on b1? Is it an equilibrium for both firms to spend nothing on R&D (b1 = b2 = 0)? Prove and explain your answer. For which values of r is n' (b,b2) concave in b1 when b2 > 0? ii. Consider the possibility of a symmetric pure-strategy…With what probability does player 1 play Down in the mixed strategy Nash equilibrium? (Input your answer as a decimal to the nearest hundredth, for example: 0.14, 0.56, or 0.87). PLAYER 1 Up Down PLAYER 2 Left 97,95 47, 33 Right 8,43 68,91An author is trying to choose between two publishing companies that are competing for the marketing rights to her new novel. Company A has offered the author $10,000 plus $2 per book sold. Company B has offered the author $2,000 plus $4 per book sold. The author believes that four levels of demand for the book are possible are: 1,000, 2,000, 3000 and 5000 books are sold. If the probabilities of each level of demand are as follows: Demand Probability 1000 0.31 2000 0.32 3000 0.25 5000 0.12 Construct the payoff table for each level of demand for company X and company Y. What are the expected monetary value (EMV) and expected opportunity loss (EOL)? Hence determine the best decision that this author should do.