ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 38. On January 7, Scott sends a letter to Aaron offering to sell his Xbox video game system for $50. On January 10, Aaron mails a letter of acceptance. On January 11, prior to receiving Aaron's letter, Scott faxes a letter to Aaron revoking his offer to sell his Xbox. As to the letters sent by Scott and Aaron: Aaron's letter is merely a counter-offer and Scott has the power to revoke. b. a. Scott's revocation is valid, no contract exists. Aaron's acceptance is effective upon dispatch and a valid contract exists. no contract because this contract must be in writing. C. "Parrow_forwardDon't use Aiarrow_forwardfnan421 Word Gözden Geçir Görünüm Varam V Ne yapmak isted ginzi soyieyin 2) Two firms, X and Y, are planning to market their new products. Each firm can develop TV, Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP PHONE FIRM X TV 30, 30 50, 35 20, 50 LAPTOP 40,70 20, 20 50,80 PHONE 50,20 80,50 10,10 A) Find the Nash equilibria for this game, assuming that both firms make their decisions at the same time. (explain the decision step by step)i B) If each firm is risk averse and uses a maximin strategy, what will be the resulting equilibrium? (explain the decision step by step);arrow_forward
- Typed plzzzzzzarrow_forwardfnan421 WWord Gozden Geç r Gorunum Varc m Ne yaomak steci gnz soy evn 1) Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP FIRM X TV 30, 30 50, 35 LAPTOP 40,70 20, 20 A) If both firms make their decisions at the same time and follow maximin (low-risk) strategies, what will the outcome be? B) Suppose both firms try to maximize profits, but Firm X has a head start in planning, and can commit first. Now what will the outcome be? What will the outcome be if Firm Y has a head start in planning and can commit first? Iarrow_forwardFrom the article: "The Centers for Disease Control and Prevention said..that keeping middle seats open [on airline flights] could sharply reduce the risk of exposure to the [Covid-19] virus." If tickets for all middle seats on a flight from Denver to Chicago are not sold: A - the fixed cost of the flight from Denver to Chicago would be less than if tickets for middle seats were sold. B - the profit from the flight from Denver to Chicago would be greater than if all tickets were sold. C - the airline selling the tickets would not be able to make a profit from this flight. D - passengers' willingness to pay for the other seats on the flight would decrease. E - the fixed cost of the flight from Denver to Chicago would not change.arrow_forward
- Josiane and Nahed live in the beach town of batroun. They own a small business in which they make wristbands and pot holders and sell them to people on the beach. As shown in the table on the following page, josiane can make 30 wristbands per hour but only 6 pot holders. Nahed is a bit slower and can make only 24 wristbands or 4 pot holders in an hour. WRISTBANDS POT HOLDERS josiane 30 6 Nahed 24 4 a. For Josiane and for Nahed, what is the opportunity cost of a pot holder? Who has a comparative advantage in the production of pot holders? Explain your answer. b. Who has a comparative advantage in the production of wristbands? Explain your answer. c. Assume that Josiane works 20 hours per week in the business. Assuming Josiane is in business on her own, graph the possible combinations of pot holders and wristbands that she could produce in a week. Do the same for Nahedarrow_forwardBriefly discuss the table and the topic.arrow_forward2arrow_forward
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