Question regarding the standard economic model

Assignment Help Macroeconomics
Reference no: EM131051146

Sarah and Laura are playing an ultimatum game where Laura is given an eight-slice pizza and asked to propose a way of splitting it with Sarah. When Sarah learns Laura's proposal, Sarah chooses whether to accept or reject the split. If Sarah accepts the split, both players receive the slices of pizza according to Laura's split proposal. If Sarah rejects the split, both players receive nothing. This game will be played only once, so Laura does not have to worry about reciprocity when making her choice. Assume that both players enjoy pizza and each would strictly prefer to eat more pizza than less.

The standard economic model predicts that Laura will offer Sarah ___________ slice(s) and Sarah ___________ accept the offer.

a. four; will not
b. seven; will
c. one; will
d. four; will
e. one; will not

Reference no: EM131051146

Questions Cloud

Elasticity of demand and cost structure : As you increase the price of a good you are selling, your total revenue increases, but your total profit decreases. Supposing that your demand has not changed, what do these two facts imply for the price elasticity of demand and your cost structur..
Several bond issues-what is the after tax cost of debt : Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 6.5 % 106.36 5 years $ 45,000,000 2 8.0 115.02 8 years 40,000,0..
Rental price of capital increases : The wages of workers rise by 20% and the rental price of capital increases by 25%. The firm should hire __________ labor and __________ capital.
What is the process to obtain the end of life medications : Currently there are 5 states in the U.S that enacted Death with Dignity Statutes. The first state to enact such a law was Oregon. These statutes were not enacted without controversy. For this week's written assignment, research one of the states t..
Question regarding the standard economic model : The standard economic model predicts that Laura will offer Sarah ___________ slice(s) and Sarah ___________ accept the offer.
Financing the purchase using the lease-equivalent loan : Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. What is the effective after-tax lease borro..
Discuss the potential role of each of the factors : Discuss the potential role of each of the factors
Problem with finding the correct solution : Any economic tutor? Kindly solve the problem below please am having problem with finding the correct solution. Question: According to the Economists Explain the reason as to why college students choose to study.
Will the total revenue on any day be normally distributed : Will the total revenue on any day be normally distributed?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Determine the gdp price index

Determine the GDP price index

  Determine delta companys output that minimizes cost per unit

Determine Delta Company's output that minimizes cost per unit (ATC), the optimal price at this output and level of profits. Be sure to show whether your solution is a maximum or a minimum. B) Determine Delta Company's profit maximizing output (r..

  Determining externalities

You're the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees.

  1 name three other providers of urgent care services

1. name three other providers of urgent care services. emergency departments urgent care clinics and walk-in clinics

  Will you move upward or downward along the demand curve

The demand curve for your firms product is linear.Based on recent sales data you have determined that at the current price the price elasticity of demand is .80. A. Is the current price on the upper or lower portion of the demand curve

  Elucidate how education- research and development

Elucidate how education, research and development, and technology affect productivity.

  Topics in applied macroeconomicsquestionwrite an essay of

topics in applied macroeconomicsquestionwrite an essay of about 3000 words using the approaches developed in the module

  Your hospital is considering opening a satellite urgent

your hospital is considering opening a satellite urgent care center about five miles from your main campus. you have

  Describe the behavior of costs per unit in its downward

In the case of a firm’s long run average total cost curve: 1) identify the INdependent and DEpendent variables and 2) describe the behavior of costs per unit in its downward-sloping segment.

  The firm should produce a smaller output and sell it at a

A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100,marginal cost equals $40, and average fixed cost equals $10. To maximize profit,the firm should prod..

  What level of excess reserves does the bank have

Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $15,000 in currency into the bank and that currency is added to reserves.

  How does the market resolve this problem

We often find that for theSuper Bowl the quantity of tickets demanded is greater than thequantity of tickets supplied. This results in a shortage oftickets.  How does the market resolve this problem?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd