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You and your roommate are in a tough position. Both of you value a clean apartment at 100, and a dirty apartment at 30. The total cost of cleaning the apartment is 80. This means that, if you both clean the apartment, you both get a payoff of 60. If you clean the apartment and your roommate doesn’t, you get 20 and your roommate gets 100. If your roommate cleans the apartment and you don’t, you get 100 and your roommate gets 20. If neither of you clean the apartment, you both get a payoff of 30. (a) Layout this situation as a simultaneous move game. (b) What is the equilibrium? (Hint: Assume that if you both clean, you split the cost of cleaning.) (c) What type of game is this? Explain.
A nation has a tax rate of 20% on the first $20,000 of taxable income, 30% on the next $30,000, 40% on the next $20,000 and then 50% on all taxable income above $70,000. Find the ATR of someone with a taxable income of $100,000. How much is a tax cre..
suppose that an economy consumes all salary income and saves all capital income. Describe if the factors of production earn their marginal product.
An industry consists of three firms with sales of $235,000, $680,000, and $315,000. Calculate the Her find a hl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).
Hotelling’s rule. Using the (graphical) two-period model for a nonrenewable resource, analyze the effects of the following on equilibrium prices and quantities in the market for that resource:
Which of the following is true about labor union effects on labor markets?
Identify market structure Identify elasticity of the product Include rationale for the following questions: How will pricing relate to elasticity of your product?
Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential.
question 1 for the following scatter plot what would be your best estimate of the correlation coefficient?nbspquestion
Many papers look at the impact of credit frictions onto business cycles, and they almost unambiguously find that credit frictions work as an amplification mechanism of other shocks. A lot of these models (in the tradition of Kiyotaki and Moore) have ..
Gomez runs a small pottery firm. He hires one helper at $12000 per year,pays annual rent $5000 for his shop, and spends $20000 per year on materials. Calculate accounting cost, economic cost, accounting profit, economic profit for Gomez pottery firm,..
How has the news media evolved from the nation’s founding to what it is today? Discuss the various functions the news media has in American society. How well do you feel the media carries out these functions?
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of o..
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