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Consider the following infinitely repeated model between two firms. Each period, the firms earn profits of 10 if they successfully collude. If a firm deviates from the aggreement, it earns 15 in the period in which it cheats. In each period that the firms compete noncooperatively, they each earn profits of 8 (that is, each firm earns a profit of 8 each period from playing the one-shot non-cooperative Nash equilibrium). Let it be the discount factor of each firm. For what values of ? can the firms sustain collusion, using the threat of non-cooperative Nash equilibrium play every period forever as punishment? (it is insufficient to simply insert numbers into a formula you have memorized).
Is limitless growth really possible. What forces do you think will be most important in slowing or halting economic growth.
Explain how specifically does this information affect your desire to sign a two-year contract with Toy Yachts R Us.
Explain and calculate the current account balance and explain and calculate the capital account balance and did U.S. official reserves increase or decrease? Explain
The largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage is $20 and the price of a printing press is $5000.00. If not, how should the manager of Largo Publishing house adjust input usage?
Illustrate what has happened to the price and quantity of the substitutes and complimentary goods/ services for your selected product over the last year.
The fear of unwanted price wars may explain why many firms are reluctant and suppose that a new machine tool having a useful life of only one year costs $80,000. Exam: 050474RR - MACROECONOMIC MODELS AND FISCAL POLICY
Since January of 2001 the Fed has reduced its Fed funds rate target from 6.5 percent to 1 percent. Nonetheless, the number of people at work is less than
Explain all your answers below clearly, including brief definitions of each term.
Scorching heat and the worst drought in nearly a half-century are threatening to send food prices up, spooking consumers and leading to worries about global food costs. On Wednesday, the government said it expected the record-breaking.
If the cost of a substitute product increases, which of the following is most likely to happen in the market for the product under consideration in the short run.
Periodically you hear of garbage strikes. Is garbage pickup a public good Does garbage create externalities What should be done about it Why does garbage collection seem to attract organized crime
Identify a situation in the past 50 years in which the government used antitrust policies to stop a monopoly from occurring. Include the circumstances of the proposed monopoly and the reason the government stepped in.
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