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Excercise:3 Two firms, i = 1, 2, sell differentiated goods. The firms set prices PI and P2 simultaneously. We assume that prices have to be non-negative, pi, p2 > 0. The demand function facing firm i is given by
qi(pi,pj) = 2 — pi + pj
Assume you are one of two manufactures of tennis balls. Both you and your competitor have zero marginal costs. Total demand for tennis balls is
The "Prisoner's Dilemma" was the gateway to the strategic viewpoint of game theory. In this assignment, you will explore the applications of game theory to economic business decisions.
Have the random generator generate an "unused" letter, then STORE that letter into a global array/vector, etc.
A telemarketing firm in a certain city uses a device that dials residential telephone numbers in that city at random. Of the first 100 numbers dialed, 51% are unlisted. This is not surprising because 48% of all residential phone numbers in this ci..
Pertaining to the matrix need simple and short answers, Find (a) the strategies of the firm (b) where will the firm end up in the matrix equilibrium (c) whether the firm face the prisoner’s dilemma.
Construct a 90% confidence interval for the population average weight of the candies.
A 40 year annuity due has level annual payments of $1000 except for the m-th payment which is $2000. When using an annual effective interest rate of 5%, the value of the annuity four years after the first payment is $22,722.53 Find M.
In the game of roulette, a player can place a $8 bet on the number 33 and have a 1/38 probability of winning. If the metal ball lands on 33, the player gets to keep the $8 paid to play the game and the player is awarded an additional $280.
Draw the best-response curves for both players, and indicate the mixed strategy equilibrium on your diagram. Verify that there is no pure-strategy equilibrium in this game, and then find the mixed-strategy equilibrium.
Ashland MultiComm Services (AMS) is a residential telecommunications provider. The AMS technical services department has embarked on a quality improvement program. Its first project relates to maintaining the target upload speed for its Internet s..
The national average for a new car loan is 8.28%. If the rates are normally distributed with a standard deviation of 3.5%, find the probability one can receive a rate less than 9%
Suppose we want to design a new placebo-controlled trial to evaluate an experimental medication to increase lung capacity.
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