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Consider the following game, where X = 0:
Firm.2
H L
Firm.1 H 140,140 20,160
L 90+x,90-x 50,50
a) For what values of X do both ?rms have a dominant strategy? What is the Nash equilibrium (or equilibria) in this case?
Discribe in detail ONE factor of how government involvement in the marketplace can impact or not impact the economy.
Two construction companies are lobbying to obtain a share of work on repaving city streets. The share of the project going to each firm depends on money contributions to the mayor's reelection fund. The project has value V in total.
Assume that the real risk-free rate, r*, is 4% and that inflation is expected to be 8% in Year 1, 6% in Year 2, and 4% thereafter. Assume also that all Treasury securities are highly liquid and free of default risk. If 2-year and 5-year Treasury note..
If the required reserve ratio is 10 percent, banks keep 2 percent excess reserves, and the public keeps a 10% cash to deposit ratio, determine the money multiplier?
Which combination of fiscal policy actions would most contractionary for an economy experiencing severe demand-pull inflation.
Discuss the real output and in ation expressions verbally - New Keynesian model with technology shocks
If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, illustrate what combination of the three products should be purchased in order to maximize utility.
Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
Select a (domestic) public limited company of your choice which has some degree of market power. In an essay of 2400 words or fewer, evaluate the pricing strategies it employs for its core product/business in order to increase its market share and p..
Calculate the markup percentage also target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component.
The Canadian economy is in long-run equilibrium. Assume the following events occur one at a time. Show the effect of each event on Aggregate Demand and Short-run Aggregate Supply in Canada by shifting only one curve.
In 2003, conservation groups paid western cattlemen to move their herds away from wild buffalo herds so that the buffalo would have more feed and not have to compete with the cattle. What has this action to do with regulation and the Coase Theorem..
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