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Two folks are fishing next to each other. Let x and y denote the amount of fish (in pounds) caught by players 1 and 2, respectively. Player 1’s payoff from catching fish isπ_1 (x,y)=2x-x^2/4-xy/10 π_1 (x,y)=2x-x^2/4-xy/10 . Similarly, the payoff of player 2 is . π_2 (x,y)=2y-y^2/4-xy/10
Find the Nash equilibrium using the Calculus method.
How much fish would player 1 catch if he was the only one fishing? Compare it to the Nash equilibrium outcome and conclude whether overfishing or underfishing occurs in equilibrium, compared to the individual fishing case.
The price of a stock is $82 at the beginning of the year and $89 at the end of the year. If the stock paid a $3.25 dividend and inflation was 2.25%, what is the real holding period return for the year?
Third National Bank has reserves of $10,000 and checkable deposits of $100,000. The reserve ratio is 10 percent. Households deposit $20,000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank ..
Coke could have followed the price per unit down, but it didn't. Total soft drink demand increased, and Pepsi took a larger share of the demand.
Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
How do you feel the study of Managerial Economics will benefit you as a business and household decision-maker?
Illustrate what is the effect on the marketplace for an hour of babysitting services in Middling today, during this increased birthrate.
What is regression's predicted earnings for a 25 year old worker. A 45 year old worker.
Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10 billion, then would national saving increase or decrease, and by how much?
Do you agree or disagree with the statement which: A monopolist always charges the highest possible price.
Suppose that the Federal Reserve purchases $10 million in securities [T-bills] from First National Bank by increasing FNB’s account at the Fed. Use a T-account to show the impact of this transaction on FNB’s balance sheet. Remember that the funds a b..
Three alternatives are being considered. Alternative A has a useful life of 3 years; Alternative B, 5 years; and Alternative C, 6 years. Using the longest life (LCM) approach, what is the planning horizon?
q. a facility for a production plant can be purchased for 155000 with a down payment of 25000. consider the following
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