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What is the primary difference between a mixed strategy and a pure strategy?
A) Pure strategies are always dominated strategies.
B) Mixed strategies are not optimal whereas pure strategies are.
C) Mixed strategies call for randomizing over possible actions, pure strategies do not. D) Pure strategies are much more common than mixed strategies.
Suppose that Best National Bank currently has $50,000 in demand deposits and $32,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Required Reserves?: Excess Reserves?:
Alzuria is a developing economy, with trade and liberalization, the country has now seen substantial development in the private sector. However, government intervention in certain markets remains strong. The banking sector has a good mix of both priv..
A state government is considering construction of a flood control dike having a life span of 12 years. History indicates that a flood occurs every 4 years, on average, and causes $500,000 in damages on each occasion. If the state uses a MARR of 12% p..
Panther Hall is a college dorm with 100 residents who each have the identical demand function for a pleasant community room, given by the equation MB = 1000 – 9.95Q. The marginal cost of maintaining the community room is MC = 1500 + 5Q, where Q = squ..
Explain what is mean by exchange rate overshooting and undershooting. Explain the GG, MM, and PPP lines and equilibrium in the Dornbusch model.
The price of oil is determined by supply and demand. The price of oil has been steadily hovering around the 100$-$120 per barrel mark for many years. Base on your understanding of the economic theory of supply and demand; describe why the price of oi..
An old 100-MW power plant has a heat rate of 13 000 Btu/kWh and burns a fuel that costs 2.90 $/MBtu. The owner of the plant estimates the fixed cost of keeping the plant available at $360 000 per year. What is the minimum price that would justify kee..
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120. The demand curve and marginal cost curves a..
Develop a four- to five-page APA-style paper that assesses a public policy of your choice that directly impacts the local government in the area where you reside. You must include the details of the public policy and analyze the effects (positive and..
The attack on the U.S. in 2001 severely reduced the number of offices available for lease/rent in downtown Manhattan (New York City). At the same time, believing that downtown Manhattan was a known terrorist target caused many businesses in the area ..
Compare and contrast the benefits-received principle of taxation to the ability-to-pay principle of taxation. Should sales and excise taxes be eliminated? Explain. Should the U.S. corporate profits tax be eliminated? Explain.
A firm has the production function y = x1^1/2 * x2. In the short run it must use exactly 15 units of factor 2. The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit. Derive the firm’s short-run marginal cost function.
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