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Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one-shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50. Which of the following is most correct and justify?
A. There are multiple Nash equilibria.
B. ($25, $25) is a Nash equilibrium.
C. A Nash equilibrium is also a perfect equilibrium.
D. There are multiple Nash equilibria and ($25, $25) is a Nash equilibrium.
potter corporation sells office supplies to government agencies. the company reports the following selected account
Within two weeks sales had fallen. Using your knowledge of game theory, illustrate what do you think disrupted McDonald's plans.
Write down Mareko's intertemporal budget constraint in future value terms. How much pineapple will Mareko consume in each period.
Using the CSU Online Library and the unit reading assignment, explore the capital budgeting techniques covered in the unit, NP, PI, IRR, and Payback.
Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 60 – Q and both firms have constant marginal cost of 40. What is the market clearing Bertrand price and quantity?
q.suppose that you are interested in comparing the costs of producing inpatient services at saving grace hospital with
The oil price shock embodied an inflation rise of 3 percentage points and inflation turned out to be 1.5%. What effect did the financial crisis have on the unemployment rate?
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
What is an individual depositor'spayoff when he withdraws at t = 2 as a function of the number of remaining depositors who withdrew at t = 1?
Compute the percentage change in price and quantity (%ΔP, %ΔQd) by adding this one room. Calculate the Price Elasticity of Demand.
q1. assume the government decides to fight obesity in america by imposing an excise tax on the saturated fat content of
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