Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider the following game.
Two firms, 1 and 2, individually choose and simultaneously submit a bid price for a given product. They can submit either a high price or a low price. If both firms bid high, the resulting payoff for each firm is $80 million. If firm 1 bids low and firm 2 bids high, firm 1's payoff is $81 million and firm 2's payoff is $77 million. If both firms bid low, the resulting payoffs are $78 million for firm 1 and $76 million for firm 2. If firm 1 bids high and firm 2 bids low, firm 1's payoff is $77 million and firm 2's payoff is $79 million.
Note that if firm 1 bids high (H) and firm 2 bids low (L), then the corresponding pair of pricing strategies is (H, L).
a. Identify the pair of pricing strategies associated with a Nash equilibrium.
b. Using the definition of a Nash equilibrium, show why this pair of pricing strategies is a Nash equilibrium.
Start with your factors of production on page 34 and then briefly describe whether these resources were allocated efficiently. Think about how you can check whether marginal benefit equals marginal cost for each of your household’s activities. Are yo..
Consider an economy in which the amount of investment is equal to the amount of savings (i.e., the economy is closed to international flows of capital).
Recall the second price auction game. Now suppose that there are three players, 1, 2, and 3, bidding for a single object in a second price auction. All three players value the object at 10, i.e., v1 = v2 = v3 = 10. For i = 1, 2, 3, let bi denote play..
q.two firms face a demand equation given by p200000 -6q1q2 where q1 and q2 are the outputs of the two firms. the total
Wooldridge Problem 4.6 In section 4.5, we used as an example testing the rationality of assessments of housing prices. There, we used a log-log model in price and assess [see equation (4.47)]. Here, we use a level-level formulation. i. In the simple ..
Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity. 2. Label each entry in List 1 as dealing with a microeconomic topic or a macroeconomic topic. Explain your answer. Use the following inform..
Opponents of free trade often argue that trade with other countries destroys domestic jobs; it threatens industries that are vital to national security; it inhibits the chances of a new domestic industry from surviving; and that it is only desirable ..
Suppose that there are two firms competing in the market for taxi services. Big Ben Taxis has the marginal cost MCB = $9 per trip, and the fixed cost FCB = $3,000,000. While Whitehall Taxis has the marginal cost MCW = $15 per trip, and the fixed cost..
Substitutability of inputs is an important characteristic of production functions. Also, capital deepening is a fundamental source of economic growth. Use the concept of input-substitutability to explain why the cost of manufactured goods tends to de..
Suppose that since some base year, the the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billion to $600 billion. What is the value of REAL GDP at the end of this period ..
Bessimer Electronics manufactures addressable actuators in one of its Maquiladora plants in Mexico. The company believes that by investing $24,000 each year in years 1, 2, and 3, it will avoid spending $87,360 in year 3. If the company does make the ..
Three years ago Maricopa County implemented a policy to tackle the problem of particulate matter in the air. The project/policy consisted in paving and compacting some of the roads the dairy industry uses for feeding the cattle and transporting the m..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd