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Consider the Rubinstein bargaining model of dividing $1 between A and B. A makes the first offer. If B accepts the offer then game ends. If B rejects the offer then B makes an offer to A in the next day. Suppose the bargaining game lasts for 4 days. If the final offer is rejected by A on day 4, they both go home with nothing. Assume A discounts future payoffs at rate α per day, and B discounts future payoffs at rate β per day. Solve the sub game perfect equilibrium payoffs to each player.
Consider a perfectly competitive market for catfish. Fishers who catch catfish clean and package them before offering them for sale. The graph below shows the cost curves of a typical firm in the market.
Which of the following events would unambiguously cause a decrease in the equilibrium price of computers?
Suppose you make $500 monthly deposits into a tax-deferred retirement plan that pays interest at a rate of 10% per year compound quarterly. Suppose that money deposited during a quarter will not earn any interest. What is the balance at the end of 20..
The average weight of the entire batch of the boxes of cereal filled today was 20.15 ounces. A random sample of four boxes was selected with the following weights: 20.05, 20.56, 20.72, and 20.43. The sampling error for this sample is _______.
A contractor says he plans to “low-ball the bid & make up for it on change orders.” Explain how this is an example of the hold-up problem. Describe the hold-up problem and how it might apply to a supply contract. Make sure you draw a game tree. How m..
Suppose that a Starbuck’s venti latte currently sells for US$4.00 in the United States and C$5.00 in Canada. Make up a value for the exchange rate between the U.S. dollar and the Canadian dollar (expressed as Canadian dollars per U.S. dollar) that le..
how does development of personal computer hardware and software reversed some of the trends brought on by the industrial revolution.
Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that:
first assume that all us produced wheat is consumed domestically and there are no wheat imports. next assume that the
An individual who is not an existing client approaches you in early November stating that the income tax return for the financial year has not been prepared or lodged. The individual is aware that tax agents can lodge later than the October 31 dea..
1 what is the impact of a tax cut in an economy operating under a flexible exchange rate regime on household spending
Demand for microprocessors is given through P=35-5Q, where Q is the quantity of mircochips. The typical company total cost of manufacturing chips is Ci=5qi, where qi is the output of company i.
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