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A rich benefactor calls a meeting with two Deans. The benefactor wishes to make a $100 donation to the two schools, but requires the deans to engage in the following bargaining game to divide the money. First the Dean L offers the Dean R a portion of the $100, which the Dean R can Accept or Reject. According to the benefactor's rules, the offer can be one of $75, $50, or $25. If the Dean R Accepts the offer, then the Dean R gets the offer, and the Dean L gets what is left over from the $100. If the Dean R Rejects the offer, then the game ends and both deans get nothing. Describe the Subgame Perfect Equilibrium outcome: explain the Dean's optimal action contingent on each possible offer. Then explain the Dean L's optimal offer.
In which type of handling system is labor cost generally the highest percentage? mechanized semiautomated automated information-directed
A country's long -run equilibrium price level has increased, but the position of its aggregate demand schedule has not changed. what has happened what specific factors might have accounted for this event
Given the below supply and demand equations for computers, The company decides to increase its marketing expenses to boost its sales and the new supply equation is P = 90 + 3Q and the new demand curve is P = 280 – 2Q. Discover the new equilibrium pri..
A decrease in government spending initially and primarily shifts which curve in what direction? An increase in government spending initially and primarily shifts which curve in what direction?
Over the business cycle, real GDP tends to increase during the expansion and decrease during the contraction. Can you name some other macro variables that fluctuate over the business cycle like GDP does?
35 percent Turkey growers operate in a competitive, stable cost industry. This industry has reached a long run equilibrium at a price of $1 per pound of turkey
In the 1990s, Pfizer, Inc., developed a new antibiotic called Trovan (trovafloxacin mesylate). Tests showed that in animals Trovan had life-threatening side effects, including joint disease, abnormal cartilage growth, liver damage and a degenerati..
unemployment is one of the major concerns that people have in todays economy since losing ones job can be one of the
Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers of this product represent an antitrust market, or do additional substitut..
a city government is considering increasing the capacity of the current waste-water treatment plant. the estimnated
What is the price elasticity of supply of land in Manhattan? What is the price elasticity of supply for land dedicated to a specific use, such as apartment buildings or office buildings? How do your answers affect the nature of economic rent earned b..
We write the percentage markup of price over marginal cost as (P - MC)/P. For a profit-maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?
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