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Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. Firm A Stays in business Sells business Firm B Stays in business A gains $9 million B gains $7million A gains $7 million B gains $15 million Sells business A gains $15 million B gains $8 million A gains $1 million B gains $3 million Refer to Table 17-24. What is the Nash equilibrium? Question options: 1) B stays in business, A sells 2) Both A and B sell 3) A stays in business, B sells 4) A and B both stay in business
1. price discriminationa. indicate the types of price discrimination for the cases below. based on the above examples
For each of the following cases, what is the expected impact on the total revenue of the firm? Explain your reasoning.
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations government change taxes in order to completely close that GDP gap?
She understands that the market interest rate for similar investment is 9 percent. Suppose annual coupon payments. What is the present price of this bond.
Explain both the purpose of HEALTH INSURANCE and how it works. Define the concepts of adverse selection and moral hazard, then, discuss how they are present in the context of health insurance.
If the countries split the market evenly, Illustrate what would be South Africa's production also profit
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Explain your answer with a diagram ( IT is Microeconomic question)
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. What characteristics of the industry make it a monopoly? What is the impact of the monopoly power on its customers?
A company has purchased equipment ( for $52000) that will reduce materials and labor costs by $12000 each year for N years. After N years, there will be no further need for the machine, and because the machine is specially designed, it will have no M..
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for hours and spend A dollars advertising, your benefit (the amount you revive when you sell your car) is B(H,A)=220H-H^2+2A. Both H and A ar..
q.suppose a computer virus disables the nations automatic teller machines atm manufacture departure s from bank
Potato farming (like farming of most agricultural products) is highly competitive. Price is determined by demand and supply. Based on U.S. Find the competitive market price and output. Potato farmers in Montana raise about 7 percent of total output. ..
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