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Tarah is the principal in a firm. She can choose to work on Project 1 (P1) or Project 2 (P2). Having observed her principal's choice, and agent Nicky can choose to also work on either P1 or P2. Following this, the payoffs accrue to both parties. If they both chose to work on P1 the payoffs are (20, 10) for Tarah and Nicky, respectively. If both parties chose to work on P2, the payoffs are (15, 20). If one party decided to work on P1 and the other on P2, the payoffs are zero to each player.
a. Draw the extensive form of this game. What is the subgame perfect equilibrium?
b. Comment on the implications for the Coase theorem of this game.
Suppose the economy is initially in long-run equilibrium and the U.S. stock market has a prolonged decrease in shareholder value. Use the AD–AS model to predict short-run changes to real GDP and the aggregate price level. Using the AD–AS model explai..
The Burrito Barn is considering a price reduction on the Firegut Burrito. Giuseppe, the proprietor of Burrito Barn, has recorded sales data at different price levels over the last year. He is quite confident that no other demand factors, such as c..
Write a one page response to the following statement: "U.S. regulators should enforce antitrust laws against the Microsoft Corporation."
Holding everything else constant, what happens to the MPL for the above aggregate production function when L increases?
A plaque index y, a measure of plaque buildup, was recorded at 4, 7, and 14 days. State the null and alternative hypotheses that should be used to test the effectiveness of the antiplaque oral rinse.
Brief history of Caterpillar quality, including anticipated cost recovery from implementation of future quality improvements. Clear description of the target audience. Summary of key points touted by Deming, Juran, and Crosby.
What are procyclical industries? Countercyclical industries?
A $2500 computer system can be leased for $79 per month for 3 years. After 3 years, it can be purchased for $750. This is also the salvage value.
1.discuss the role that discounting plays in a dynamically efficient allocation of non-renewable resource use through
Draw a network that depicts the company's distribution network. Identify the supply nodes, transshipment notes, and demand nodes on the network.
a monopolist has two types of customers. there are 100 of type a who will each pay up tp 10 for a single unit of the
1.Suppose that the demand curve for apples is downward sloping, and that with other things remaining equal, the price per tonne increases from $234 to $244. We would then expect Select one:
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