1. Suppose the following game is repeated infinitely. The players have a common discount factor dE (0,1). C D 0,5 1 С 32 1,1 D 5,0 For high enough values of 6, there is an equilibrium of the infinitely repeated game in which (C, C) is played in the first 4 periods followed by (D. D) in sub- sequent periods. Is this true or false? Explain carefully.
Q: Problem 4. Equilibrium interest rate and exchange rate.f" Using the framework relating money…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub parts…
Q: A monopolist faces inverse market demand of P = 140 - and has Total Cost given by TC(Q) = 20? + 10Q…
A: Profit maximization is a manner commercial enterprise corporations go through to make certain the…
Q: Suppose that both Friedman and Fisher are absolutely correct. Assume that over many years money…
A: Money Supply refers to the quantity of money that is supplied or released into the economy of a…
Q: The minimum annual production rate to make this investment justifiable is:
A: Solution 1)Consider the above given that Investment = $255695 Maintenance Cost =$28322 Net Profit…
Q: 7) A good with a horizontal demand curve has an elasticity of infinity…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Assume a company is producing 600 units of output per day and minimizing total cost with the…
A: Short-run marginal cost is the adjustment of complete cost when an extra result is delivered in the…
Q: Discuss the available tools to address labour shortage issues in th uk
A: A labor shortage is a situation in which the supply of labor is less, and the demand for labor is…
Q: A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor…
A: 1. A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor…
Q: Under which condition can the government continue to accumulate debt? if it issues more bonds O ifit…
A: The debt of the government estimates how much the central government owes to its banks. The…
Q: A government wants to reduce both the country’s inflation rate and its current account surplus. What…
A: Inflation refers to the rise in the general prices of the product, like rising in the price of fuel.…
Q: 3. Which of the following is an important feature of capitalism? A. Capital is government owned B.…
A: 3. The important feature of capitalism is that the capital is privately owned.
Q: How did small businesses helped in employment?
A: In economic terms, employment refers to the state of having or being employed. If someone must be…
Q: Question 36 Presently, union membership represents of the labor force. O less than 14% O between 45%…
A: Union membership refers to the participation of the workers in the labor union, who have some power…
Q: What effects might the devaluation of a nation’s currency have on its business firms, its consumers,…
A: Devaluation is the deliberate depreciation of a country's currency. Devaluation lowers the cost of…
Q: hich of the following statements is true? OThe demand for foreign currency in the United States…
A: The answer is - The demand for foreign currency in United State increases as the volume of export…
Q: Price (per latte) $4.50 S 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 200 600 1,000 1,400 1,800…
A: Imposition of tax on a good by government generates tax revenue that goes to government.
Q: (a) Suppose the government of a country has run large budget deficits for several years in attempt…
A: When government raises its budget deficit in order to increase output, it leads to a rise in the…
Q: Economics Question
A: A fixed exchange rate refers to when the central authority of a country ties the value of its own…
Q: Grapes and bananas are perfect complements for Jane and Betty. Jane eats one grape per three…
A: The Edgeworth box, named after Francis Ysidro Edgeworth, refers to the two dimensional illustration…
Q: QUESTION 12 What condition(s) are necessary for disequilibrium unemployment to exist? O a. Wages to…
A: 12. In the market, disequilibrium refers to the situation when there is a mismatch between market…
Q: will need to upload your answers. Assume a company is producing 600 units of output per day and…
A: The term "short run" refers to a period of time during which the amount of at least one input…
Q: 2).Do you think it likely that attempts to reduce income inequality would reduce people's incentives…
A: 2) Economic inequality is defined as the gaps in wealth and income that exist in a society. Apart…
Q: What is the equilibrium quantity of credit card balances when the nominal interest rate is zero?…
A: Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can…
Q: why might a government subsidy to corn producer give rise to a deadweight loss? explain the…
A: The economic concession that is being granted to private firms by the government for the promotion…
Q: What type of good is rival and nonexcludable? O private goods O club goods common resources Opublic…
A: Goods are said to be rival in nature if consumption by one person decreases the amount of goods…
Q: Economics 3. A golf tournament pays $80,000 to the player who finishes in 4th place and pays $70,000…
A: The payout ratio is the pace of income paid out to financial backers as distributions.
Q: The table below shows the marginal cost for three firms to clean up units of pollution. Marginal…
A: Total Costs for removing the pollution - Total Cost for removing 1 units Total Cost for…
Q: The imposition of a tariff on a product is least likely to result in a(n) O increase in the price of…
A:
Q: 4. Why are fiscal policy multipliers smaller in magnitude in the variable price-fixed wage version…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The United States has a comparative advantage in _-skilled labor. This explains why the U.S. is a…
A: A country is a net importer of a particular good when the import of that particular good exceeds the…
Q: Monopolistic competitive firms are productively inefficient because production occurs where Multiple…
A: Answer is given below
Q: Suppose the Market Demand function is Q = 60,700 – 520P. The two firms in the market compete under…
A:
Q: (i) Explain the relationship between the current account balance given by exports (X) minus imports…
A: Since you have posted multiple questions, we will answer the first question for you. If you want any…
Q: Q2. The economist for the ABC Truck Manufacturing Corporation has calculated a production function…
A: We have Production function: Q=1.3L0.75K0.3 .... (1) Also Labor Capital 100 50…
Q: 26.When isoquants get progressively closer together there is Select one: a. increasing returns to…
A: Any consistent level of output is shown by an isoquant curve which breakdown to the meaning of equal…
Q: What change must be caused by devaluation? Pick a,b,c or d A) a fall in the rate of interest B) a…
A: Devaluation is a situation in which the currency of the country devalues. That is the value of the…
Q: a) Consider 2 firms competing on price choice and facing the following market demand functions: q1 =…
A:
Q: 2020 Tax Data Tax Bracket Marginal Tax Rate $0-9,875 10% $9,876-40, 125 12% $40,126-85,525 22%…
A: The tax amount on the income of $200000: Tax amount =sum of ( income in the tax bracket * tax…
Q: The W Brewery company produces beer, which it sells to distributors in barrels. The brewery incurs a…
A: Given Fixed cost for beer production =$16,506 Variable cost = $20 per barrel Demand constraint: v=…
Q: Choose the correct answer. Coffee and doughnuts are complements in consumption. Suppose bad…
A: partial equilibrium Partial equilibrium suggests that the analysis is limited to the impacts of a…
Q: b) Suppose a business faces a production function which is of the Cobb-Douglas form: Q(L,K) = AL“ Kß…
A: A production function exhibits increasing returns to scale when change in all the inputs results in…
Q: QUESTION 9 When thinking about withdrawals from the circular flow of income, what is the difference…
A: Introduction Circular flow of incomes tells about the movement of money in an economy. 9) Correct…
Q: In free markets, when prices don't send the right message, resources are allocated in Pareto-…
A: (a) Market failure When there is an excess or undersupply, or when all costs are not factored into…
Q: 3. Suppose all firms in a competitive industry are operating at output levels for which P equals…
A: 1) in perfect competitive market, there are many number of sellers and buyers which turns the market…
Q: Define income, disposable income, and discretionary income. How does each type of income affect…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: The table shows employment statistics for a fictional country. Use the information to answer the…
A: New labour force:- = 5905 + 246 = 6151 New labour force participation rate:- = Labour force /…
Q: a) Use an appropriate diagram, to explain how the Permanent Income Theory of Consumption reconciles…
A: The permanent income speculation is a hypothesis of buyer spending expressing that individuals will…
Q: Read parts (i) to (iii) before answering. Answer all three parts on a single diagram. Assume that…
A: Philips curve shows the relationship between inflation and unemployment rate in an economy. There is…
Q: a) If a business has a long-run cost (TC) function given by TC = aq^3 – bq^2 + ca where q = the rate…
A:
Q: With reference to a Cobb-Douglas production function, if a country has a declining labor share that…
A: Cobb-Douglas Production Function Cobb-Douglas production function Shows the relationship of the…
7
Step by step
Solved in 3 steps with 1 images
- Consider the following game: Player 2 In Out Player 1 In -2,-2 2, 0 Out 0, 2 0, 0 (a) What is the Nash equilibrium of this game, or what are the Nash equilibriaof this game? (b) Does either firm have a dominate strategy (a strategy that is always abest response)? Which? (c) Suppose Player 1 could move before Player 2 and Player 2 could observe Player 1’s move. What do you think would happen?Consider the following extensive form game between player 1 and player 2. T B (2, 2) L R R (3, 1) (0, 0) (5, 0) (0, 1) (a). Find the normal form representation of this game. (show the bimatrix) (b). Find all pure strategy NE. (c). Which of these equilibria are subgame perfect?see image Use the following setting for questions 1-3. Consider the following static game: C R L 3,1 0,0 5,0 T M 2,1 1,2 3,1 B 1.2 0,1 4,4 Suppose this game is played for two periods. At the beginning of period 2, the players can observe the outcome from period 1. There is no discounting. 1. First, assume only pure-strategy SPNE such that either player's second period strategy DOES NOT depend on the first period outcome. How many such SPNE are in this game? (a) 1 (b) 2 (c) 3 (d) 4 (e) none 2. Consider only SPNE from the previous question. What is the maximum sum of the players' payoffs that can be achieved in the first period? (a) 0 (b) 3 (c) 4 (d) 5 (e) 8 3. Now consider all possible pure-strategy SPNE such that (B,R) is played in the first period. What must be the equilibrium outcome in the second period of such SPNE? (a) (T,L) (b) (M,C) (c) (B,R) (d) (T,R) (e) There are no such SPNE
- 1. Consider a repeated game in which the following stage game is played in each of two periods and there is no discounting. U Player 1 M D L 5,5 0,0 0,12 Player 2 C 0,0 2,2 0,0 R 12,0 0,0 10, 10 a) Find the Nash equilibrium that maximises the players' final payoffs, i.e. the sum of their payoffs from each period. I b) Discuss the intuition of this equilibrium.rock paper scissors гock 0. -3 1 рарer 1. -1 scissors -1 3 0. (a) Show that xT= ( ) and yT= (3) together are not a Nash equilibrium 3 3 313 for this modified game. (b) Formulate a linear program that can be used to calculate a mixed strategy x € A(R) that maximises Rosemary's security level for this modified game. (c) Solve your linear program using the 2-phase simplex algorithm. You should use the format given in lectures. Give a mixed strategy x E A(R) that has an optimal security level for Rosemary and a mixed strategy y E A(C) that has an optimal security level for Colin.11. What are the subgame perfect equilibria of the following game? Out In T B 7,21 L R L/R 9,3 1,1 1,1 3,9 (a) (InT, L), (OutB, R) and (OutT+OutB, L + R). (b) (InT, L) and (OutB, R). (c) Out and (InT, L). (d) (InT, L), (OutB, R) and (OutT+OutB, L + R). (e) (InT, L). 2
- Consider the following two player extensive form game. メ (2,5) (4,) (3,5) a. Find the induced normal form of the given extensive form game using the pure strategies of the players. Find out all the possible Nash Equilibrium of this game. b. From the Nash Equilibrium you are getting in part a., which one is subgame perfect Nash Equilibrium? Explain with appropriate reasons. c. Explain why the NE in part b. is credible. (Use maximum 3 sentences):Subgames • • • At each node where a player makes a decision, we can think about the "subgame" starting at that node A subgame is the portion of the tree following a particular node How many subgames does our first sequential move example have? • How many subgames does our entry game have? • How many subgames does the game on the right have? • What are its Nash equilibria? Player 1 (1,4) T Player 2 U B (5,2) (3,3) р Player 1 D L 9 (2, 0) Player 2 R (6, 2)Costco Spend $1B on advertising Spend $1.5B on advertising Spend $1B on advertising $3.5B; $2.7B $4.2; $2.2B Target Spend $1.5B on advertising $3.2B; $3.4B $4B; $3B
- Consider the following simultaneous game: Player 1 U D Player 2 L 20,-10 -10, 20 R -10, 20 20,-10 Please indicate whether each of the following statements is true or false. Player 1 has a dominant strategy. This game has a Nash equilibrium. This game has a Nash equilibrium in pure strategies. Player 1's best response is D if player 2 plays R.2. Market entry following picture. Consider a market entry game with imperfect information as depicted in the Pi A, A4 A2 A3 14 P2 P2 l-p BỊ B2 BỊ B2 B3 B4 B3 B4 4 3 13 7 4 4 5 3 5 10 6 16 3 (a) Write down all strategies of the players. Transform the game into a normal-form. Find all pure strategy Nash equilibria. (b) Find all weak-perfect Bayesian Nash equilibria in pure strategies. Do not forget the systems of beliefs. Argue well if there is none.2- Consider the following game. Player 2 Player 1 U 12, 2 | 3, 9 5, 8 4, 2 D (a) Find all the Nash equilibria, pure and mixed. (b) Suppose that the payoff of the column player u:(D, L) is reduced from 8 to 6, but all other payoffs remain the same. Again, find all the pure- and mixed-strategy Nash equilibria. (c) Compare the mixed-strategy equilibria in parts (a) and (b). Did this worsening in one of player 2's payoffs change player 2's equilibrium mixed strategy? Did it change player l's? Give some intuition.