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Consider the following information for a simultaneous move game: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. If you and your rival plan to be in business for only one year, the Nash equilibrium is:
A. for each firm to advertise.
B. for neither firm to advertise.
C. for your firm to advertise and the other not to advertise.
D. None of the preceding answers is correct
What provision of the U.S. Constitution has played the most important role in the development of civil rights policy?
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For every of the subsequent goods, indicate whether you expect demand to be inelastic or elastic also explain your reasoning
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A financial institution has entered into a 10-year currency swap with company Y. Under the terms of the swap, the financial institution receives interest at 3% per annum in Swiss francs and pays interest at 8% per annum in U.S. dollars. Interest paym..
Can you please explain how I obtain the profit maximizing rate of output? I also do not understand how if a price of the ties were to fall from $19 to $15, how many ties would be produced. Lastly, how do you understand at what price a firm should shu..
Illustrate what role does comparative advantage play in trade among member nations
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