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a. What is the Nash equilibrium of this pricing game?
b. Is there a better solution to this game? If so, what mechanisms would you advise General Electric or Westington to put in place to increase the likelihood that both parties agree to the better solution?
q.a researcher predictable that cost elasticity of demand for automobiles in the united states us is -1.2 while the
illustrate the effect of capital formation by comparing the production possibilities curves with the present time and one in ten years time, for two different eonomies, one with a high rate of capital formation, and the other with a low rate of ca..
Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market? Discuss.
illustrate what wage would a monopoly union demand. Explain how many workers would be employed under union contract.
Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million. Suppose the entire economy contains $5000 worth of one-dollar bills. If people fail to..
Although European Union is the most advanced form of regional integration, it is currently facing a challenging time. What are some of the major challenges facing the EU?
A perfectly competitive rm produces output q with capital K and labor L according to the production function: q = f(K; L) = 4K 1 4L 1 4 The price of labor is w = 4, and the price of capital is r = 4. Prove that this production function has decreasing..
Consider the famous diamond-water paradox: water is necessary for life and extremely useful, but is very cheap on a per gallon basis (NYC charges $3.70 for 748 gallons), while diamonds are not much use for most things, but extremely expensive on a pe..
Linda committed a traffic violation that resulted in an accident. She learns first that the violation will result in a $500 fine; she then learns that she will have to pay another $500 for damage caused in the accident. According to prospect theory,
Is inflation: High, Moderate, or Low?. Is unemployment: High, Moderate or Low; what is the unemployment rate?. Are interest rates: High, Moderate, or Low?. Is the economy in: Growth, Stagnation, or Recession?. When was our most recent past recession ..
Which of the following is (are) true about the loanable funds market?
Do you think that the tit-for-tat strategy will be successful in maintaining cooperation in cases where the repeated prisoners dilemma is being played with a finite time horizon (i.e. players know when the game will end)? Explain. Imagine that you ar..
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