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Two firms are planning their market strategies. Firm K can earn $25 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns $16 million if firm L responds with strategy P and $5 million if L responds with strategy Q.
Firm L's potential profits would be $10 million and $18 million from strategy P, depending on wether firm K implements strategy S or T. Firm L's profits from strategy Q would be $14 millions or $12 million depending on wether firm K follows strategy S or T.
A. Construct a payoff table.B. Does either firm have a dominant strategy? Dominated? Is there a stable equilibrium?
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water.
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility.
If a firm is losses money, it might be enhanced to stay in business in the short run. Is this statement ever true.
If Sammy refuses to contribute to the butterfly garden, he'll not be able to enjoy its benefits if it is built.
Calculation of the unemployment rate and part time workers who would prefer to work full time.
Given your understanding of bond markets, what signals is the the bond market sending in response to the downgrade. Is this problematic.
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each per day
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
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