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Question: Assume that you are in a cinema watching an enjoyable film. However, not far away from you there is a spectator who is a real nuisance. He comments loudly on every scene dismissing the plot and the cinematography interrupting your viewing; he spits out his popcorn and makes rude comments about the rest of the audience. You conclude that something must be done to stop him, so that you can enjoy the rest of the film. As Cinemagoer 1 you have the choice of punishing the rude person at some cost to you, or to wait for another patron, Cinemagoer 2, to punish the rude person at no cost to you. Let the payoff from watching the film suffering the nuisance be 10; the payoff without the nuisance be 20 and the cost of punishment borne by the punisher be 5.a. Draw the payoff matrix and explain b. What type of game is this? Why c. Identify whether or not the rude person is not disciplined and explain why
Based on your readings, discuss what have you learned about high performance and balanced scorecard/competing forces?
A firm has a production function defined as y = 40L1/10K7/10. The firm faces costs of $10 wages, and $100 rental rate of capital. Find the cost function, and average total cost, average variable cost, and marginal cost functions.
Let the exchange rate be defined as the number of dollars per Japanese yen. Assume that there is a decrease in U.S. interest rates relative to that of Japan.
Suppose El Centro California decides to tackle the problem of nitrates in the water. Nitrates are compounds derived from synthetic fertilizers that are not assimilated by plants and leached out into the underground water and affect the human health. ..
Assume MACRS and the current tax law. The corporation's taxable income places it in the top federal income tax bracket. New Tech's interest rate is 9%.
What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories?
Two firms A and B face the following costs to reduce their level of pollution by the amount q: cA(q) = 2q^2 cB (q) = q^2 One unit of pollution generates a marginal damage of $2 to society. With no public intervention, what level of pollution reductio..
Using a market or industry as an example, explain how the Prisoners' Dilemma game helps explain observed (real-world) behavior among oligopolistic firms.
A firm believes the sales volume (S) of its product depends on its unit selling price (P) and can be determined from the equation P = $100 - S. The cost (C) of producing the product is $1000 + l0S.
You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..
What is the infant industry argument for protectionism? Is the argument rational or an irrational appeal to emotion? Think carefully about why a country would wish to have particular industries located within their own borders
Current annualized yields on 1 year US treasury securities are only .28%....while current annualized yields on 2year US treasury securities are .69% . What does this data suggest about financial market expectations of 1 year yields, 1 year from now? ..
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