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Game theory Example Sample Homework
Question: Suppose that Sven has a V W Cabrio that he would like to sell. Unfortunately, the speedometer on the car is broken and in need of repair. Sven is accustomed to driving the car in this condition and it is worth $3,000 to him fixed or not. Sven would like to sell the car to move up to something with a little more muscle. Jeff and only Jeff is willing to buy the car for $3,500 as is or for $4,500 if the speedometer is fixed. Both Sven and Jeff know each others’ values and that they can get the car repaired at cost by Passport Motors for $600.
Derive the Marshallian demand functions and the indirect utility function, and confirm that Roy's identity holds.
You cat's summer kitty-cottage needs a new roof. You are considering the following two proposals and feel a 15-year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.)
In each of the following cases, in the short run, determine whether the events cause a shift of a curve or a movement along the curve. Determine which curves is involved and the direction of change.
A lawyer who drives a beat-up car and wears frumpy dresses may have a hard time getting customers. Potential clients may conclude from his appearance that he is poor, and if he is poor, he probably is not very good.
Compare the two graphs for GNP for Techistan and Growthistan. What is the difference in the final value of GNP for each country and Plot the growth rate for Techistan and Growthistan on one plot.
What determines the slope of the per-worker production function How do "rules of the game" affect productivity and growth What types of "rules" should a government set to encourage growth
Major events in our country and around the world tend to have economic advantages for some segments of society and disadvantages for others. Determining who benefits can be tough for negative events
Recall that Carson Company has periodically borrowed funds but contemplates a stock or bond offering so that it can expand by acquiring some other businesses. It has contacted Kelly Investment Company, a securities firm.
Unfortunately banks are reluctant to make loans to people who currently have low incomes, even if there is a good chance their incomes will be higher in the future. If people could always borrow as much as they want to, would you expect consumpti..
How many nurses does National Hospital employ, and what wage will National pay its nurses, what is the deadweight loss arising from monopsony?
WHAT SPECIFIC GLOBAL IMBALANCES ARE INDENTIFIED? WHY ARE THESE OF MAJOR CONCERN? WHAT COMINATION ECONOMIC CONDITIONS WOULD WORSEN A HAED-LANDING?
Estimate the cash flow to be included in the horizon year and what will be the horizon value if there is no profit growth?
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