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What is the dominant Nash Equilibrium Strategy for the repeated prisoner's dilemma game, when both players know that the game will end after one million repetitions? If you were going to run an experiment with human players for such a scenario, would you predict that players would use this strategy?
(Simple Spending Multiplier) Suppose that the MPC is 0.8, while planned investment, government purchases, and net exports sum to $500 billion. Suppose also that the government budget is in balance.
What is the effect of a $1 specific tax on equilibrium price and quantity if demand is perfectly inelastic? What is the incidence on consumers? Explain.
Indicate the type of opinion you would render under each of above set of circumstances. Give reasons for your decision.
Company A has fixed expenses of $15,000 per year and each unit of product has a $0.002 variable cost. Company B has fixed expenses of $5,000 per year and can produce the same product at a $0.05 variable cost. At what number of units of annual prod..
Inflation affects creditors and debtors. Suppose the Canadian debtors borrowed $100 from the Canadian creditors on December 31, 1992 and promised to pay back $105 on December 31, 1993. This is equivalent to paying back a nominal interest rate of 5..
in a large hat you have three blue four red and five purple marbles. you pick three marvles from this hat without
Rate of change of cost. A fast-food restaurant can produce a hamburger for $2.50. If the restaurant s daily sales are increasing at the rate of 30 hamburgers per day, how fast is its daily cost for hamburgers increasing?
You have the following end of year cash flows: Y0 = $400 Y1 = $300 Y2 = $200 Y3 = $100 Y4 = $0 Y5 = $0 Y6 = $0 Y7 = $500 Y8 = $500 Y9 = $500 Equate the following cash flows to equal cash flows in years 5,6,7,8 and 9. Let i = 8% per year.
Show, graphically, the short- and long-run effects of a monetary expansion when both exchange rates and prices are flexible and capital is perfectly mobile. What happens during the period of adjustment from the short to the long run?
What are externalities? What are positive and negative externalities? Give examples of Positive and negative externalities and give a brief introduction about your chosen merit good and explain the role of government in providing this merit good to..
Show and explain why an $x per gallon increase in wholesale gasoline prices results in a retail market price increase that is less than $x.
Maria is a hostess at a local restaurant. When she earned $8 per hour, she worked 35 hours per week. When her wage increased to $10 per hour, she decided to work 40 hours. However, when her wage increased again to $12 per hour, she decided to cut ..
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