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An item is up for auction. Player 1 values the item at 3 while player 2 values the item at 5. Each player can bid either 0,1, or 2. If player i bids more than player j then i wins the good and pays his bid, while the loser does not pay. If both players bid the same amount then a fair coin is tossed to determine who the winner is, and the winner gets the good and pays his bid while the loser pays nothing.
Consider player 1. Which, if any, of his strategies are strictly dominated?
Now consider player 2. Which, if any, of his strategies are strictly dominated?
Products, like people, are viewed as having a life cycle. Product life stage cycles include (a) Introduction, (b) Growth, (c) Maturity, and (d) Decline. What Life stage would you say the following items reside? What marketing strategies would you sug..
Compare and contrast the possible consequences for an economy of inflation and deflation.
A machine tool , which has been used in a plant for 10 years, is being considered for replacement. It cost $10,000 and was depreciated by MACRS depreciation using a 5-year recovery period. An equipment dealer indicates that the machine has no resale ..
Let's say our government runs an advertising campaign, encouraging its citizens to reduce spending money on consumer items, and instead save more money. How does this affect economic activity?
q1. suppose that mnl logs harvested the logs in october 2011 and sold them to mnl number in december 2011. mnl number
Calculate the average cycle stock for this item using the order quantity in part a. c. Assuming there are 12 periods per year, calculate total cost per year.
What is the cost function associated with producing y units of output? Assume now that input prices are (w1,w2). What is the cost function associated with producing y units of output?
There are 3 firms producing mercury emissions, with heterogeneous marginal abatement costs: Suppose the EPA adopts a command-and-control regulation permitting each firm to emit just 20 tons per year. i) Calculate the cost of compliance for each of th..
Illustrate what is repayment amount if you make a cash loan. Illustrate what does cost-of-carry of futures or forward pricing mean? Explain how is it related to storage cost of gold.
Could Boeing's margin probable rise or else fall if yen then depreciated as well as competitor prices were unchanged.
Use the IS-LM model to predict the short-run impact on the interest rate and output if the central bank pushes interest rate down at the same time that both consumption and investment fall due to a financial crisis.
Suppose for a moment that someone with legislative power decides to abolish Fractional Reserve Banking and passes a law that forces banks to only lend the money they own, that is M0. What would be the economy-wise implications of such a change in the..
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