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Which of the following statement is true concerning a 2x2 game matrix in which every cell has different paryoffs (the are no "ties") ?
a- A dominant Strategy Solution might not be a Nash Equilibrium
b- A Nash Equilibrium must also be a dominant Strategy Solution
c-The game can only have one Dominant Strategy Solution
d- None of the above statement are true.
Suppose that the firm Traveldrex gets a patent for a new type of travel mug that will never tip over. As a monopolist in the market for this new type of travel mug, Traveldrex faces market demand Q = 120 – 2p, where Q is in thousands of mugs and p is..
Impact of Monetary Policy How does the Fed’s monetary policy affect economic conditions? Trade-offs of Monetary Policy Describe the economic trade-off faced by the Fed in achieving its economic goals.
Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and total fixed cost is $3,600. What is marginal cost?
Income elasticity of demand is expected to be _____.
Consider the two-period optimization problem when income in the second period is zero and the individual is a borrower. Suppose that interest rate declines. In a graph, identify the Hicks income and substitution effects of the interest rate change on..
Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expiration date of January 16th. Compute the gross profit (i.e. disregarding option premium)..
Lasso Capital has been experiencing increasing demand from its institutional clients for information and assistance related to international investment management. Identify and briefly discuss three reasons for adding international securities to the ..
Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min {3/2M,C}. Coffee costs $2/oz, milk $1/ oz. Graph the two budget constraints and the two optimal bundles with coffee on..
Why or why not? More generally, are pricing strategies such as odd pricing, price discrimination, cost-plus pricing, and two-part tariffs valid, ethical economic strategies? Why or why not?
For several months before your vacation trip to germany,you fiind out that the exchange rate for the peso has increased relative to the euro. are you pleased or saddened explain.
Is the open market, capitalist economic philosophy now the only viable model for fostering economic development and prosperity? Should (or could) the state play a more direct role in guiding the economy? How similar is the global economy of 2007 to t..
Monopolies are generally considered to have disadvantages. However, in certain circumstances, monopolies can have various advantages for consumers and social welfare. Do you agree or disagree with this statement. Defend your answer and use real world..
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