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Please lower your price and we have a deal 5) Consider two people playing an ultimatum game over $10 that can be divided in $1increments ($10-$0, $9-$1, $8-$2, etc.). Suppose it is common knowledge among them that both have Fehr-Schmidt utility functions with the assumptions given in lecture. a) What is the subgame perfect Nash equilibrium if it is common knowledge that both players have a= 1.5 and = 0.6? Show your work/logic b) What is the subgame perfect Nash equilibrium if it is common knowledge that both players have a= 0.3 and= Show your work/logic
1. identify domestic and global environments countries that are in opposing cultural clusters as identified in
question 1. the steel industry near hamilton on emits among other harmful pollutants carbon monoxide co. there are ten
what are the problems with unemployment and what are the problems with the way that the government measures
The greater the number of different goods available in an economy, A) the less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop B) the less likely it is that a double coincid..
a raincoat producer has short-run cost functioncq 50 q110q2a show the firms marginal and average cost curves on a
Presume that the quantity supplied of cars exceeds the quantity of cars demanded. At the market equilibrium, resources are allocated efficiently because: Presume that at Jones and Smith Shoe Factory, the marginal cost of making a pair of shoes is $15..
1 discuss the process of money creation by the commercial banks2 suppose the central bank sells 5 billion worth of
in 2012 a baseball player signed a contract reported to be worth 89.8 million. the contract was to be paid as 13.2
An end-of-sale price promotion changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the promotional price be?
Question 2: Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail.
in the debate on fixed versus floating exchange rates the strongest argument for a floating rate is that it frees
Suppose market demand and supply are given by Qd = 300 - 4P and QS = -50 + 3P. The equilibrium price is: a $35. b $40. c $50. d $60.
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