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Two players, Amy and Beth, play the following game with a jar containing 100 pennies. The players take turns. Amy goes first. Each time it is a player's turn, she takes between 1 and 10 pennies out of the jar. The player whose move empties the jar wins.
a. If both players play optimally, who will win the game? Does this game have a first-mover advantage? Explain your reasoning.
b. What are the optimal strategies (complete plans of action) for each player?
Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?
Vertical integration is relatively more attractive:
Consider that two countries, Brazil and Argentina, have the same rates of investment, population growth, and depreciation. They also have the same levels of capital per worker.
Illustrate what is the capital account balance. Illustrate what is the financial account balance.
Can you relate the Classical and/or Keynesian macroeconomic models to assumptions about economic behaviors and to economic policies being implemented in the U.S. economy today?
Suppose that you own a 25 year old movie theatre in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theatre with 4 IMAX screens and 20 more regular screens. For each of the characteristics listed below, ev..
Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to "export its way out of trouble" by oversupplying everything from automobiles to semiconductors. "Fu..
Select a Government Regulation. Identify a particular government regulation of your choosing that in your opinion has either been successful or a failure. Briefly state the original purpose of this regulation and whether it has changed over time. The..
You purchase 27 call option contracts with a strike price of $145 and a premium of $3.65. Assume the stock price at expiration is $157.40. What is your dollar profit? What if the stock price is $143.35? What is the dollar return?
Jones Machinery specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. Robert Jones, president of JonesMachinery, is convinced that harvesting weeds is far better than using chemicals to kill weeds. Calculate ..
To engage in first-degree price discrimination a firm must
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