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What are the Nash equilibria for the battle of the sexes game in footnote 11? Discuss whether this game and equilibrium concept make sense for analyzing a couple's decisions. How might you change the game's rules so that it makes more sense? (Hint: In this game, the individuals pick a vacation spot simultaneously without consulting each other.)
The local smog control district has agreed to pay to the firm a lump sum of money to provide for the first cost of the equipment and maintenance during its 10-year useful life. At the end of 10 years the equipment, which initially cost $10,000, is..
The firm sells the same good to competitive buyers in the output market. Determine its profit-maximizing output. What price does it charge in the output market? What price does it pay to its suppliers?
If the government wanted to reduce the trade deficit by altering the exchange rate, what sort of monetary policy should it employ? Explain.
Use comparative static analysis to illustrate (that means draw graphs) and describe what should happen to the equilibrium price and quantity in the markets for wild salmon and the Languedoc white wine, given just this information. Be specific but ..
Market research indicates that you can sell 40 000 tickets for the Sundowns-Pirates clash atR10 each, or 30 000 tickets at R20 each. Which option would you choose? What is the priceelasticity of the demand for tickets for this particular game?
A study of long distance phone calls made from the corporate offices of Pepsi Bottling Group, Inc., in Somers, New York, revealed the length of the calls, in minutes, follows the normal probability distribution.
Draw the firm's MC, AVC, and AC curves. Add a downwardsloping demand curve, and show the profitmaximizing quantity and price. Indicate the profit as an area on your diagram. Show the deadweight loss.
The financial market looks like the following. 1. People decide not to hold currency. 2. The required reserve ratio on deposits is 10 percent 3. The money demand function looks like Md = $Y*( 0.9 - 3*i ) 4. Nominal income is $5 Trillion 5. The Moneta..
Provide an interpretation of the coefficients and perform t tests on them.
Show that capital income taxes have no effect in the former, while they depress the effective capital-labor ratio in the latter. Explain why there is such a difference.
For three years, there was no technological change in Longland but capital per hour of labor increased from $10 to $20 to $30 and real GDP per hour of labor increased from $3.80 to $5.70 to $7.13. Then, in the fourth year, capital per hour of labo..
Supposed that firms only variable input is labor when 50 workers are used, the average product of labor is 50, and marginal product of the 50th workers is 75. The wage rate is $80, and the total worker is 75. Wage rate is $80
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