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Assume there are two countries involved in a war. Country A is considering invading Country B through a bridge which is the only access point to country B. If country A invades through the bridge country B has the option to either fight or run away. Once country B chooses either to fight or run away, country A can decide either to retreat through bridge or continue with the assault.
A) when the two countries fight, the confrontation ends in a stalemate and both armies are vanished. If one country decides to fight while the other country runs away, the country fighting keeps its numbers while the country retreating loses half of its army. If both countries run away they both lose half of their army. Draw a game tree and find the Nash equilibrium for this game. Explain.
B) can country A change the outcome of the game by burning the bridge they are crossing to invade and committing its troops to fight? expand the game tree to show this option for county A and find the new Nash equilibrium. Explain
A number of stores offer film expanding as a service to their consumers. Assume that each store that offers this service has a cost function C(q)=50+0.5q+0.08q2 .
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The two loops in the circular-flow diagram represent the flow
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For each event explain how the event would affect price, supply and demand of the product listed two days before Thanksgiving the market has many unsold turkeys.
explain the points in the process where the vendor has an opportunity to add value, be sure to answer the following questions, how does value vary for a large purchase versus a smaller one, does adding value cost money
Qd=160,000-2000P Qs = 40,000+2000P MEC=.0006Qs. Qd is the quantity lots of paper Qs is the quantity supplied and P is the price per lot of paper.
The current economic downturn has been called a housing disaster, a financial disaster and a debt crisis, but the simplifying logic of the political season has settled on what is really more a result than a cause.
Obtain price elasticity of demand for good one. Obtain income elasticity of demand for good and find the amount of compensation needed for Hicks compensation
It is clear that more education results in higher average life time earnings. Therefore, can we conclude that it is always a good investment to spend more income getting more education
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