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Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.
Driver 1 Driver 2Left RightLeft 0,0 -1000 -1000Right -1000, -1000 0,0a. Does either player have a dominant strategy? Explain.b. Is there Nash equilibrium in this game? Explainc. Why this game is called a cooperative game?
Using the tools of analysis developed in this course, demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society economic welfare.
If the market has an expected return of 10 percent, a standard deviation of 20% and the risk-free rate is 4 percent, what proportion of your money should be invested in the market if you want an expected return of 16%?
Suppose that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
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Explain why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
Suppose you are the owner-manger of an innovative computer software company, and your latest product is so revolutionary.
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Between the types of costs faced by a firm how can technology help firms to lower their costs. What are some specific examples of how firms have used technology to lower costs.
Two articles Fed Official Expects Growth also Are Inflation Expectations Rising from the Ashes. Illustrate what exactly is the Federal Reserve.
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