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A small town is served by two grocery stores, White and Gray. Each store must decide whether it will remain open on Sunday or whether it will close on that day. Monthly payoffs for each strategy pair are shown in the following table:
Gray’s choices
Showing all of your work, answer the following questions:
Which firm is the more profitable in this market?
Does the firm you identified as more profitable have a dominant strategy?
Based on your calculations, what should the more profitable firm do: open on Sundays or close on Sundays? Explain your answer.
Is this an example of a Prisoner’s Dilemma? Explain your answer.
7) in 1988, the average wage rate was 9.45 an hour and in 2008 the average wage rate was 18 an hour. The CPI in 1988 was 118.3 and in 2008 it was 215.3. which is real wage rate is higher?
crew brew of wisconsin plans to build a microbrewery on a small stream in that state. after sampling water from the
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? (Include data)
The government often strictly regulates noise and chemical pollution by industry to overcome which market failure?
Which of the following could pose a challenge in building partnerships with tribes?
Let's assume the money supply is 'backed' by the real GDP, which it is. If the money supply were to increase faster than the real GDP did, what would happen to prices, and why? What would happen if the money supply couldn't grow, as it couldn't, when..
Two plants are emitting a uniformly mixed polllutant called gunk into the beautiful sky over Tourist Town. The city government decides it can tolerate total emission of no more than 100 kg of gunk per day.
USA has millions of individuals under 16 years old who are not working. Do we include them as part of unemployed individuals? Why higher rates of unemployment undesirable? What are the social problems linked with unemployment? What are the types of u..
What are carrying costs in the denominator of the economic order quantity (EOQ) formula? How do large carrying costs affect the economic order quantity?
It is likely that supply curves for labor in individual labor markets are upward sloping. For a firm buying factors of production in a perfectly competitive factor market:
How can queuing promote equity?
The value of cross price elasticity of demand between goods A and B is 0.75, while the cross price elasticity of demand between goods A and C is -1.38. Characterize A & B and A & C as substitutes or complements. Explain why this is the case.
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