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A rich benefactor calls a meeting with two Deans. The benefactor wishes to make a $100 donation to the two schools, but requires the deans to engage in the following bargaining game to divide the money. First the Dean L offers the Dean R a portion of the $100, which the Dean R can Accept or Reject. According to the benefactor's rules, the offer can be one of $75, $50, or $25. If the Dean R Accepts the offer, then the Dean R gets the offer, and the Dean L gets what is left over from the $100. If the Dean R Rejects the offer, then the game ends and both deans get nothing. Describe the Subgame Perfect Equilibrium outcome: explain the Dean's optimal action contingent on each possible offer. Then explain the Dean L's optimal offer.
If you could live anywhere in the world, where would you choose and why? What is one location in the world you would never, ever live? Why not? Be sure to consider and discuss the economic factors affecting your decisions, especially the labor market
For each of following changes, show/explain the effect on DEMAND CURVE and state what will take place to market equilibrium price and quantity (in the short run).
Suppose the aggregate production function in ADANAC is Yt = A K1/3 L 2/3. Assume A is constant and equal to 2. What are the returns to scale in this production function?
the accompanying table shows a boat manufacturers total cost of producing boats.nbspquantity of boatstotal
What factors determine the elasticity of industry’s labor demand curve? Based on these factors, discuss labor demand for factory line workers versus labor demand for nurses, which one would be more elastic?
the factors that cause shifts in supply and the importance of demand are examined.what is the law of supply and what
prepare a one to two 1-2 paragraph journal entry that examines your learning experiences with orion in week 4 of this
A firm operating under monopolistic competition - a price maker - is facing an unexpected inventory build up due to a weakening national economy. How does this firm allocate output between its several plants? How is the selling price determined at th..
In what type of market communications do most companies spend the bulk of their advertising dollars What are some of the advantages of that type of communication
Your task is to take this advice and produce your own recommendation to the President. Do not simply choose one person's advice, but pick and choose from each recommendation that you receive.
FULL karma for complete and clear response. 1. Under what conditions are the Cournot and Bertrand equilibria the same 2. What happens to price and output in the Cournot, Bertrand and Stackelberg models if marginal costs increase by 10 percent
Can you articulate how macroeconomics and microeconomics come into play in the context of firm decision-making in a global business. Please provide an example.
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