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On Friday night, Elton and his partner Rodney are deciding where to go for dinner. The choices are Indian, Korean, and Mexican. Elton most likes Indian food and most dislikes Mexican food, whereas Mexican is Rodney’s favorite and Indian is his least favorite. Each cares about the food but also about dining together. As long as the food is Indian or Korean, Elton prefers to go to the restaurant he thinks Rodney will choose. However, he abhors Mexican food and would choose to dine alone at either the Indian or the Korean restaurant rather than joining Rodney at the Mexican place. As long as the food is Mexican or Korean, Rodney will decide to go where he thinks Elton will choose. However, Rodney is allergic to some of the Indian spices and prefers dining alone to eating Indian food. Both of them are at their separate workplaces and must simultaneously decide on a restaurant. Find all Nash equilibria.
In some country, the rate of inflation is expected to increase from 2 percent to 5 percent and people fear that the increase will be permanent if the central bank does not take action. In both diagram and text, indicate clearly whether you deal with ..
Suppose the GDP is $40 billion below its potential level. It is expected that next-period GDP will be $20 billion below potential and that two periods from now it will be back at its potential level. You are told that the multiplier for government sp..
q1. why might a company use an indirect cost discrimination scheme versus direct cost discrimination?q2. starting with
In the early stage of her administration, Fed Chair Janet Yellen focused on maintaining a monetary policy of low interest rates to continue the Fed’s efforts to stimulate the economy. However, the article assigned indicates she faces some longer-term..
What are some factors (patterns of behavior) that project a company’s culture? List several examples from the organizations you work in.
In the classical model if there is a decrease in capital stock, what are the effects on labor demand, real wages, and output? (Increase or decrease) What are the effects if population decreases?
Calculate the output level and price that maximizes total revenue.
In the small town of Springfield, Duffman observes that the price of beer has fallen. Duffman concludes that the total amount of money spent buying beer has to fall since the price of beer is lower.
The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico whose purpose is to eliminate tariffs between the countries and promote all aspects of international trade. Opponents of NAFTA point ou..
Suppose that there is an increase in the number of ATM machines in service. In the monetary intertemporal model, what are the current effects on aggregate output, employment, the nominal interest rate, and the price level? Please draw graphs and expl..
Describe the different aspects of the business that you should be looking at from an economics perspective in order to run the company efficiently and explain using economics theory how you would improve the running of your company.
Explain using the labor/leisure model and words, how a progressive income tax will affect the budget constraint of the worker and their behavior or how a tax preference (tax deduction) will affect consumption choices.
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