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Consider the following payoff matrix:
a. Does Player A have a dominant strategy? Explain why or why not.
b. Does Player B have a dominant strategy? Explain why or why not
According to U.S. Census Bureau data (2004), average monthly income for a person with a degree in engineering was $5296 versus $3443 for a degree in liberal arts. What is the future value in 40 years of the income difference at an interest rate of..
John runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth)
What is the value added at each stage of production? Using the value-added approach, what is GDP? c. What are the total wages and profits earned? Using the income approach, what is GDP?
Suppose that the average loss from blindness in people under forty is $1,000,000, and the test for glaucoma costs $35. Use the Hand rule to determine if the professional standard of not testing those under forty is efficient.
an economy has an unemployment rate of4 percent and an inflation rate of 5 percent a year at point A on a graph. Some events occur that move the economy in a clockwise loop from A to B to D to C and back to A.
(Phillips Curves) Describe the different policy trade-offs implied by the short-run Phillips curve and the long-run Phillips curve. What forces shift the long-run Phillips curve?
Do you think the two approaches can be used together to inform each other?
What are the prime rate, the discount rate, and the federal funds rate Who controls these rates What would you expectto happen in the general economy if these rates are all increased or Decreased
a firm produces according to the following production function: Q=k^.5L^.5 where q= units of output, k= units of capital, and L= units of labor. suppose that in the short run k=100. moreover, wage of labor is w=5 and price of the product
Assume the following values for Figures 5.4a and 5.4b. Q1=20 bags. Q2=15 bags. Q3=27 bags. The market equilibrium price is $45 per beg. The price at a is $85 per bag. The price at c is $5 a bag. The price at f is $59 per bag.
Estimate the number of pore volumes required to reduce 99% of the porewater concentration of the following contaminants from an aquifer with 2% organic carbon content and a porosity of 0.4: 1,2-dichloroethane, 1,4-dichlorobenzene, biphenyls, and A..
Demand P (q)=100-2q Total Costs C(q)=10+20q . Calculate marginal cost for a firm in this industry. The marginal cost is graphed below, what is special or interesting about this marginal cost function. Verify the monopolist equilibrium is (Q=20,P=6..
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