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1. Consider a simultaneous move game between a union and a company. If both the parties bargain hard, each would gain nothing. If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million, while if they both accommodate, they each get $3 million. Could either party do better?
2. ?Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $10, $20, $30, and $40 respectively. The expected value is:
3. Jim is haggling with a car dealer over the sale price of a used car. When he entered the store he was the only customer. This means that
4. Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first chooses either a high price ($50) or low price ($20) and the second mover either agrees to the price or walks away from the deal and neither party gets anything. Ignore costs and assume the customer values the item at $60. If the customer moves first with a high price what is the best response of the shopkeeper
q1. confronted with a choice between 50 today or 100 one year from now economic experts suggest that the vast majority
Use the following data table to determine the equilibrium real interest rate after certain factors change: Month Real Interest Rate (%) Loan able Funds (trillions of $) Exogenous Change Equilibria (increases, decreases, or no change)
Succinctly explain the concepts of Structure (Structure), Culture, Agency and Social Action, and the relationship between these concepts in developing a historical view of the process of cumulative causation.
This assignment is based on an article published in The Economists' Voice by Cass R. Sunstein, titled 'The Precautionary Principle as a Basis for Decision Making', in Volume 2, Issue 2 , 2005. The article and rubric (i.e. assessment criteria) are att..
Consider a two-period economy with a single commodity (say leisure): x_1 is the consumption of leisure in period 1, and x_2 is the consumption of leisure in period 2. When Peter evaluates consumption streams, he cares only about the best time in his ..
q1. a express total profits pi in terms of q.b elucidate total profits maximized at which level of output? what price
What is your thought about tracking the U.S. Economy and Unemployment and Inflation.
Consider two bonds, bond A and bond B. Bond A has a face value of $1000, matures in one year and sells for $950. Bond B has a face value $1000, matures in one year, pays 6 percent per year and sells for $940. All work must be shown a. Explain how the..
Elucidate how much profit will it earn at that output rate. If the marketplace price dropped to $10, illustrate what should the firm do.
Two monopolies in different markets have identical, constant marginal cost functions. (a) Suppose each faces a linear demand and the two demands are parallel. Which monopolist will have a higher Lerner index: the one whose demand is closer to the ori..
If the growth rate of the money supply is 6?%, velocity is? constant and real GDP grows at 4?% per year on? average, then the inflation rate will be what %? If the growth rate of the money supply increases to 18?%, velocity is constant and real GDP g..
You identify a vacant piece of land zoned for industrial warehouse use which you can purchase for $3.0 million today (an amount which will need to be paid immediately). After detailed analysis you find that constructing the warehouse will take one ye..
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