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Two cyclists in a bicycle race have the strength to pull away from all the other cyclists in the pack. They can decide either to pull away unilaterally or to pull away conditionally. If they pull away unilaterally, they compete evenly for the victory in the race. If they pull away con- ditionally, it means that they keep their eye on the opponent and if the opponent pulls away unilaterally, they follow in the wind stream, riding comfortably in second place. This is known in the racing lingo as draft- ing. The follower in this position can win the race in the end, because wind resistance tires the racer riding in front, and the racer riding in second place easily passes the leader in the sprint to the finish. If both racers decide to follow conditionally, they remain in the pack, squan- dering their advantage, and both have in the end only a 10% chance of winning the race. What does game theory suggest?
The short-run production function of ACME Widgets Inc. is given by q = 40(2L − 8)^(3/4, where q is the number of Widgets ACME produces in a month, and ` is ACME’s monthly labor input, measured in $1000’s. Find ACME’s labor-elasticity of output as a f..
You are working as a student assistant for an engineering firm and are paid by the hour. Every two weeks, you turn in a time sheet to your supervisor, and three workdays later, your paycheck is direct deposited into your checking account.
A monopolist faces the inverse demand curve p = 64 - 2q. At what level of output is his total revenue maximized?
Explain why both customers will be satisfied with the deal. What kind of price discrimination is this type of segmentation and how will the plan increase revenu
Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%.
What's the di?erent statuses of resources. discovered, undiscovered, economic,subeconomic? Which ones get used? and what can happen to cause one them tochange to another group?
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what happen to interest rates if the public believes him.
How the "financialization" of the capitalist political economy was central to the global economic crisis of 2008. (Explain what financialization is; how or why it arose as a resolution to earlier crises; and what specific features of it were importan..
Here is a copy of Table 10.1 from the textbook. This table describes some of the fundamental elements of the four major market models:
How do you find reference link for (Paul Dorman et al., 2014)?
Suppose you have the following regression equation where SALES = 100s of cars sold per month, PRICE = average actual price paid by customer for car purchases in month, ADV = monthly advertising expenses, SEPT = dummy variable with value 1 for Sept an..
Draw an Edgeworth box with indifference curves through this endowment. At what combinations of X and Y are both better off (i.e., are Pareto Improving)? At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
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