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Consider a game in which there are two players, A and B. Player A moves first and chooses either Up or Down. If A chooses Up, the game is over, and each player gets a payoff of 2. If A moves Down, then B gets a turn and chooses between Left and Right. If B chooses Left, both players get 0; if B chooses Right, A gets 3 and B gets 1. Draw the tree for this game, and find the subgame-perfect equilibrium. Show this sequential-play game in strategic form, and find all of the Nash equilibria. Which is or are subgame-perfect? Which is or are not? If any are not, explain why. What method of solution could be used to find the subgame-perfect equilibrium from the strategic form of the game?
Suppose the price of a Netflix subscription increases while the price of Redbox rentals stays the same. If Redbox is an inferior good, what happens to the number of Redbox DVDs rented?
Use the information in the table to calculate total revenue, marginal revenue, and marginal cost. Indicate the profit-maximizing level of output. If the price was $3 and fixed costs were $5, what would variable costs be? At what level of output wo..
This assignment is based on an article published in The Economists' Voice by Cass R. Sunstein, titled 'The Precautionary Principle as a Basis for Decision Making', in Volume 2, Issue 2 , 2005. The article and rubric (i.e. assessment criteria) are att..
Your firm has been offering a combination of salary and stock options for employees. An entry level electrical engineer earns $75,000 plus $25,000 in stock options. Your accountant tells you this is cheaper than paying him only in salary. Explain why..
No durable goods spending= $400million, durable goods spending = $300 million, new residential housing spending = $200 million, and spending on services = $500 million. What does consumption equal?
It would cost the town of Irondale $50 million to build a gas powered generator that would produce a maximum of 5 megawatts of electricity at 15 cents per hour. Another alternative would be for Irondale to build a $100 million coal=fired generator th..
q1. which one cash flow or net income do you think is more important to apple inc final project company and more
The nation of Ectenia has 20 competitive apple orchards, which sell apples at the world price of $2. The following equations describe the production function and the marginal product of labor in each orchard: What is the markets labor demand?
Consider the horizontal quality model on the unit interval from 0 to 1. There are N consumers located uniformly along the interval. There are two firms, with zero marginal costs, initially located at 0 to 1. If the firms sell to the whole market, der..
Describe New Zealand's approach to inflation targeting. What are the advantages and disadvantages of this system? Would it make sense for a central bank to try inflation targeting by using the tailor rule? What problems might the central bank encount..
What are some barriers a company might need to overcome when entering the global market? and What are some sources of financing for a new business? Limit your post to one source, and include some pros and cons.
What steps can a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept.
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