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Consider a 2 × 2 two-player zero-sum game in which the possible outcomes for Player 1 are win (payoff = 1) or lose (payoff = -1). The win probabilities corresponding to each of the four action pairs are UL : 1/3 UR : 2/3 DL : 3/4 DR : 1/4 a) (2 points) Write the normal form of this game, using player 1’s expected payoffs.
up -1/3 ur 1/3
dl1/2 dr -1/2
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Zelda Manufacturing has are unique product that sells for $15 per unit and marginal cost is $7.50. Conclude Lerner index for Zelda Manufacturing. Does this index indicate market power.
According to Keynesian theory:
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What would the lading capacity of the banking system be after such a portfolio switch? How large would the money supply be if the banks fully utilized their lending capacity?
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