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Two folks found $100 on the street and have to decide how to split it. A game theorist came by and proposed the following resolution. Each player simultaneously declares the amount she wants to keep. If the demands sum up to less than or equal to $100, each gets what she claimed; if the demands sum up to more than $100, both get nothing. Find all possible Nash equilibria. Carefully explain your reasoning.
Assume a US saver with $1,000 to place in a domestic or European bank CD. The interest rate for US and European savings equals 4%. If the saver keeps her money in the US, her return equals ____. If the saver moves her money to Europe with a forward t..
Your company charges $60 for a board game it invented and has sold 3,000 copies during the last year. Elasticity for board games is known to equal 3. Use this information to determine a linear and power demand curve.
Vermont is one of many states that passed Certificate of Need (CON) laws in the 1970s. Many interest groups are in favor of repealing all CON regulations. Assuming perfect markets, describe in one page or less, using graphs where appropriate, the eff..
Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. What is the profit-maximizing dispensing fee for Medicare and PPO patients? Why might the..
A narrative essay on "Should government ensure basic comprehensive medical care for all citizens as a basic human right and pay for this through general tax revenues? Why or why not? What do you think would happen to your taxes? What would happen to ..
If the money wage rises, all else equal, economists would expect
Assume an economy produces only pizza also jeans. If some resources are unique in the construction of either pizzas or jeans.
What will happen to the equilibrium price and quantity of new cars if, simultaneously, the price of automobile insurance (a complement) increases and the price of steel decreases
Using the concept of net present value also opportunity cost, explain when it is rational for an individual to pursue
Think of a strategy pursued by the company your work for or another company. How can game theory help improve the outcomes for the decision makers? Explain whether simultaneous-move, repeated-move, or sequential-move games are most applicable in the ..
She tells her friend that the additional utility she would get from the second pair of sneakers is the same as the additional utility she would get from the fifth sweater.
Compare the development of two imperial powers. What factors inspired these nations to develop empires? How did the powers first gain control over their imperial territories? How did they administer their territories? What role did the local populati..
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