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Firm 1 and firm 2 are movie producers. Each has the option of producing a blockbuster romance or a blockbuster suspense film. The payoff matrix displaying the payoffs for each of the four possible strategy combinations (in thousands) is shown below, with firm 1's payoff listed first. Each firm chooses without knowing its rival's choice. Find the Nash equilibrium. Are there dominant and dominated strategies? Firm 2 Romance Suspense Firm 1 Romance 600, 600 700, 700 Suspense 700, 700 400, 400
The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1 dollar and the price elasticity of demand for public transportation has been estimated t..
The number of repairs manufactured by a computer repair shop depends on the number of employees as given follows:
Assume that the United States is initially operating at its full-employment level of output and prices and wages are eventually flexible both upward and downward. Construct a long-run AD-AS model.
Conventional telephones are frequently breaking down, and it takes months to get a new line installed. Firms are thinking of adopting new parallel wireless system offered by private firms,
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
Show the changes to the T-accounts for the Federal Reserve and for commercial banks when the Federal Reserve buys $50 million in U.S. Treasury bills.
Assume the market demand and supply functions are QD=430-5P and QS= 2P + 318. You have just graduated and moved to this city;
Calculate the equilibrium level of real GDP. Does the government succeed in increasing real GDP and calculate the equilibrium level of real GDP.
Suppose that a less developed country known as LDC encourages direct foreign investment
Is the GDP measure underestimating or overestimating national production and total income in the economy? Why? What are the impacts of the shortcomings of the GDP as a measure of the national product and national welfare.
Your local bank is reluctant to lend to you as you basically have a large mortgage loan on the property on which the hospital complex lies.
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
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