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Sadaam Hussein is deciding where to hide his weapons of mass destruction (WMD), while the United Nations is deciding where to look for them. The payoff to Hussein from successfully hiding the WMD is 5 and from having them found is 2. For the UN, the payoff to finding the WMD is 9 and from not finding them is 4. Hussein can hide them facility X, Y, or Z. The UN inspection team has to decide which facilities to check. Because the inspectors are limited in terms of time and personnel, they cannot check all facilities.
a. Suppose the UN has two pure strategies: It can either inspect facilities X and Y (both of which are geographically close to each other) or inspect facility Z. Find a Nash equilibrium in mixed strategies.
b. Suppose the UN can inspect any two facilities, so that it has three pure strategies. The UN can inspect X and Y, X and Z, or Y and Z. Find a Nash equilibrium in mixed strategies.
Assume Arturo is willing to trade 6 burritos to Dina for each 10 tacos which Dina produces also send to Arturo.
If you get this classmate as your partner on a series of projects throughout the year, rather than only once, Explain how might that change the outcome you predicted in part (b).
Firm x develops a new product and gets a head start in its production. Other firms try to produce a similar product but discovers they have higher average total cost than the existing firm. This situation illustrates what
If the company will sell the number of units obtained in part d, and wants to maintain the same level of profit as last year, what will its new price have to be?
comparing the company's cash records with the monthly bank statement reveals several additional cash transactions. Calculate the correct balance of cash?
What do you think of Coca-Cola's environmental initiatives? Are they just window dressing , or does the company seem to be sincere in its efforts?
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
determine the amount at time 0(now) equivalent to the cost of owning and operating the machine for the next five year period. It is anticipated that the machine can be sold for $1000 at the end of the five year period. Use an interest rate of 10%.
The Texas Transportation Institute at Texas A&M University conducted a survey to determine the number of hours per year drivers waste sitting in traffic.
You will select any country that is considered developed and compare it with a nation that is developing. Illustrate what are social, economic and political differences that set them apart.
Suppose that a calculator company operates in a perfectly competitive marketplace producing 5,000 Calculators every day.
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