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Consider the game between taxpayer and revenue service described in the payoffs matrix below.
a. For what value of T is (Evade, No audit) a Nash equilibrium?
b. Can (Evade, Audit) ever be a Nash equilibrium? What does this imply about the punishment structure?
c. Does a simultaneous move game capture the essence of the auditing problem?
Using a spreadsheet program or a calculator, solve Tracy's problem of how often to go to the ATM when the norminal interest rate on her bank account is 10%, she spends $30 each day, it costs her $0.50 each time she uses the ATM.
Consider the market for earmuffs; there are two buyers, John and Joe. John has a demand function given by D(p)=16-3P and Joe has a demand function given by D(p)=30-2p. (both demand functions are implicitly bounded below by 0)
suppose an economys real gdp is 38000 in year 1 and 41200 in year 2. what is the growth rate of its real
Determine how pricing relates to elasticity of demand for competing models.
use the following cost index data for each piece of equipmentto update the price that would be paid today original equipment cost indexwhen originallpurchased cost index today varnishbath ..
The equipment has been depreciated using MACRS with a GDS property class of 7 years. The state in which the firm operates imposes a 10% corporate income tax. The firm has federal taxable income in the $10,000,000 to $15,000,000 bracket
Consider a bank that has assets of 100, capital of 20, and short-term credit of 80. Among the bank's assets are securitized assets whose value depends on the price of houses. These assets have a value of 50. Set up the bank's balance sheet.
where quantity demanded is measured in thousands of tickets per week.Suppose the theater currently charges $6 per ticket, but is consider raising their prices to increase revenue.would you recommend that they raise prices
This chapter focused on how interest rates affect savers. If an individual is a net debtor (that is, she owes money), what is the income effect of an increase in interest rates? Will an increase in the interest rates that she has to pay induce her..
What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type
estimate the effect on profit and return on sale
A $10,000 mortgage bond with a bond interest rate Of 8% per year, payable quarterly, was purchased for $9200. The bond was kept until it was due, a total of 7 years. What rate of return was made by the purchaser per 3 months and per year.
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