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Q. A selfless person approaches Jones and smith with a $100 bill and offers to sell it to the highest bidder, but both the winning and losing bidders must pay her their bids. So if Jones bids $2 and smith bids $1 they pay a total of $3, but Jones gets the money leaving him with a net gain of $98 and smith with $1. If both bid the same amount, the $100 split evenly between them. Assume that each of them has only $1 bills on hand leaving three possible bids" $0, $1 or $2. Write out the payoff matrix for this game, and then find its Nash equilibrium.
at what interest rate would the person earn interest if the interest was compounded annually? b) if the double declining balance (200% DB) method is used, what is the depreciation amount for year 2?
Explicate which among the policies is most effective and least effective for this nation.
Elucidate what policy measures can be to combat cost push inflation and demand pull inflation respectively and commet on the possible side effects of these measures.
For an annual market interest rate of %9, calculate the economic life of the machine. Show the results of your calculations on a graph.
Demonstrate how growth accounting could be utilized to learn the value of g. Analyze the effects of an unanticipated permanent reduction in g on the real income rate also the real interest rate.
Summarize in words the predictions and limitations of the theoretical framework developed for the first exam: that is the predictions for the effect of capital accumulation.
Suppose the following were facts relating years of education to average annual income of individuals. Would you use the inductive or deductive method to derive an economic principle from these facts.
Compute the price elasticity of demand when price changes from $100 to $80 per pair using the average formular.
A Los Angeles firm uses a single input to produce a recreational commodity
B would cost $1.5 and save $$400K pa. C would cost $2.1M and save $500K pa. For each of the alternatives. Construct a Choice Table based on the chosen MARR.
How does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete? Why do some economists oppose trade restrictions? Explain your answer.
Compare the effects of these two policies in terms of their implications for the current account.
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