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Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $300. If both play the strategy stay, then each gets a payoff of $600. If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D. For which values of C and/or D is the outcome (leave, leave) a Nash equilibrium?
Discuss what happens to the demand and or supply and to the equilibrium price and quantity in the market for housing as population increases and at the same time the government releases more land for housing.
Consider again The Experience Machine from Week 2. Would you get in the machine? Carefully explain why or why not. Utilitarianism is a deceptively simple moral theory that has quite a bit of intuitive appeal. But it also has its share of problems. H..
Given that the demand function of the good Z; Assuming that Pz=10, Ps=40 and Y =950, what is the price elasticity of demand of good Z if Pz increases to $20? Assuming that Pz=10, Ps=40 and Y=950, what is the income elasticity when Y increases to $11..
The demand for a good X in a town is Q = 10 − P , where P is the price of good X per pound and Q is the quantity demanded in pounds. The marginal cost of producing the good is $2 per pound. There is no fixed cost of producing the good. What are the p..
If the price elasticity of a good is less than 0 but greater than -1, the good is considered _____________ and the company should ____________ price to maximize total revenue.
Total industry sales are $105 million. Top four firms account for sales of $10 million, 9 million, 8 million and $5 million, respectively. What are four firm concentration ratios.
illustrate what is the prospect cost of producing Toyotas in every nation. Should which information involve your calculation of the inflation rate.
What is the amount of 10 equal deposits that can provide five annual withdrawals, where a first withdrawal of $2,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of $500 per year, if the interest rate is 10% compou..
Using the supply and demand analysis of the market for reserves, indicate what happen to the federal funds rate under the following situations: The Treasury has just paid a large bill to defense contractors and as a result its deposits with the Fed f..
Human Capital Investments. Suppose that the marginal cost of an additional unit of human capital is given by MC = 400 and the marginal benefit is given by MB = 800 ? 25HC , where HC is the number of units of human capital. Graph MB and MC as a functi..
Federal vs State Government. Choose a side to argue from. What makes the other form of government weaker in solving problems and deliver services to citizens?
if relatively more drug users are addicts rather than casual users, prohibition will be more effective. Is this statement true or false? Explain. the interest income that could have been earned on money invested in a college education is not relevant..
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