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Q1. Elucidate how which any two pure strategy equilibria of a zero-sum game are interchangeable also equivalent.
Q2. Consider a linear Cournot duopoly with inverse demand curvep = a - Qwhere Q is market quantity. Assume firm 1's marginal cost is c_1 = 1,also firm 2's marginal cost is c_2 = 2 (also a > 4).
(a) Find the Nash equilibrium in pure strategies.
(b) Illustrate what does iterative strict dominance say about the game?
(c) Illustrate what happens in Nash equilibrium if a = 3?
Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.
Switch grass was promised to be the new crop that would replace corn as the primary feedstock for bio-fuels a couple of years ago. Why have we still not switched to switch grass.
Explain how specifically does this information affect your desire to sign a two-year contract with Toy Yachts R Us.
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Consider we did technological change in the class where it does contribute to one side of the production use that to understand the problem.
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Starting with the situation in part d, suppose the government starts taxing the population $30 each year without spending anything.
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