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Players A and B are engaged in a coin-matching game. Each shows a coin as either heads or tails. If the coins match, B pays A $1. If they differ, A pays B $1.
a. Write down the payoff matrix for this game, and show that it does not contain a Nash equilibrium.
b. How might the players choose their strategies in this case?
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,738 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..
The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself..
Consider fines for speeding. Assume that speeders can drive at either 75 mph or 90 mph (the speed limit is 65 mph), and that the probability of being caught at either speed is .01. Also, assume that the maximum possible fine is $10,000, which is set ..
”Most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and other specialists warn is evolving into one of the worst ecological disasters of modern times. According to the United Nations, the w..
What explains the rapid growth in private investment in e-commerce firms in the period 2011–2012? Was this investment irrational? Despite the popularity of Facebook, why was its IPO deemed a failure?
Use the B/C method to determine which should be selected at a discount rate of 0.75% per month over a 6-year study period.
Illustrate what is the total contribution to GDP from the above events. The university bookstores received 4 million euros.
Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright.
A common marketing tactic among many liquor stores is to offer their clientele quantity or volume discounts.
Note that the current and capital accounts in the U.S. Balance of payments (BOP) are mostly private transactions while the official settlements balance involves transactions between governments. If trade with China causes more imports than exports in..
A US automobile factory uses $100,000 worth of parts purchased from foreign countries along with U.S. inputs to produce 30 cars worth $20,000 each. Twenty of these cars are sold and 10 are left in inventory. How much did these actions add to GDP?
Using a supply and demand diagram and a "tax wedge," show whether the buyers or the sellers will bear the bigger burden of a soda tax. Please actualy draw the supply and demand diagram for a full rating!
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