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1. What is the difference between a cooperative and a noncooperative game? Give an example of each.
2. What is a dominant strategy? Why is an equilibrium stable in dominant strategies?
3. Explain the meaning of a Nash equilibrium. How does it differ from an equilibrium in dominant strategies?
Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza.
Are you able to explain in your own words why high excess reserves represent a significant opportunity cost for the bank when the economy is moving into a recession?
Deflating a time series removes the effects of dollar inflation and permits the analyst to examine the series in constant dollars.True or false
Economic Issues and Policy
What is the per worker production function?
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
What is monopolistic price and quantity and what is the competitive price and quantity
College Financial Sources, which makes small loans to college students, offers to lend $500. The borrower is required to pay $40 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate per year
How much production in your country is undertaken by foreign multinationals? Con- sider the reasons why those companies chose to locate investment and production in your country. Are they the same factors that have made companies that are based in..
A hospital would replace five personnel that currently cover three shifts per day. 365 days per year. Each person earns $35,000 per year. Company-paid benefits and overhead are 45% of wages. Money costs 8% after income taxes.
You've entered into contract to purchase a new house, and the closing is scheduled for next week. It's typical for some last minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. You have three options ..
Imagine a firm with the same cost structure but in each of the four market structures: Competitive, Monopolistically Competitive, Oligopoly, and a Monopoly. Using the concepts of consumer surplus and producer surplus, explain the long run outcome in ..
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