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1. An investment in flood control infrastructure today will generate $1,000,000 in benefits 10 years from today. Using a 3% discount rate what is the present value of these benefits today (to the nearest dollar)?
a. $744,094
b. $722,421
c. $1,343,916
d. $970,874
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Find the best response functions and the mixed strategies Nash Equilibrium if each player randomizes over his actions.
Q=10-2P,PRICE DECREASE FROM RS 3 TO 2
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