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1. Describe a sequential game facing your firm, and represent it in extensive or tree form. Compute and analyze the equilibrium of the game. What advice can you derive from your analysis? Compute the profit consequences of the advice.
2. Describe a repeated bargaining game your firm faces, compute and analyze the equilibrium of the game, and explicitly show how it differs from the one-shot (nonrepeated) equilibrium. What advice can you derive from your analysis? Compute the profit consequences of the advice.
3. You want to invest in a hot stand near the ballpark. You have a .35 probability that you can turn your current $15,000 into $50,000 and a .65 probability that fierce competition will drive you to ruin, losing all your money. If you decide not to enter, you keep your $15,000. Would you enter the market, why or why not?
Pawel spends half of the year working in Britain where he consumes British food q and half of the year in Poland where he consumes Polish food Q.
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
What are the macro and micro problems? What systems are affected structural, psychosocial, technical, managerial, goals?
Suppose that all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function
To what extent were monetary factors responsible for the recession of 1981 and 1982? Provide a full analysis and be specific. Please site references where appropriate.
Explain how a change in investment can have big impact on GDp causing nationwide slump. Recall that investment is "small' relative to the whole economy.
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Impact of technology advance a monopolist has the following demand function: Solve for the price and quantity that the monopolist would choose to minimize its profit. And also calculate the resulting profit.
Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.
How would you show what happens with equilibrium income if agents suddenly lose confidence and decide to spend less, even if their income has not changed?
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
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