What is a nash equilibrium what is this equilibrium called

Assignment Help Macroeconomics
Reference no: EM131344747

There are one firm and two types (low-ability and high-ability) of workers. The cost of attending a college is $8,000 for a high-ability person and $20,000 for a low-ability person. The value of high and low ability workers for the firm is $50,000 and $30,000 respectively. The proportion of each type in the population is 1/2.Available actions for the firm are:F1: Pay $32,500 regardless of worker's college educationF2: Pay $40,000 for college graduates and $25,000 for those who do not attend a collegeAvailable actions for a low-ability worker are:L1: Attend a collegeL2: Not attend a collegeAvailable actions for a high-ability worker are:H1: Attend a college H2: Not attend a collegea. What is a Nash equilibrium? What is this equilibrium called?b. Suppose one action for the firm (F1) is replaced by Pay $25,000 regardless of worker's college education. What is a Nash equilibrium? What is this equilibrium called?

Reference no: EM131344747

Questions Cloud

What will be the impact of rupee depreciation : What will be the impact of rupee depreciation on the current account balance of India, if the import demand condition is elastic? If personal disposable income rises, along with the rupee depreciation, will the current account balance improve or w..
Conduct a survey of the community as viewed through : Conduct a survey of the community as viewed through the eyes of the public health nurse - Introduction to the community, including the name of the community and any interesting or historical facts you would like to add about where you live
Find the rank in economic freedom of the countries : Find the rank in economic freedom (overall) of the countries that you were using in part III of the assignment. Find the rank in business, trade, financial freedom, and property rights of the countries that you were using in part III of the assignm..
How your clause can be applied in a business risk management : How your clause can be applied in a business risk management setting (for a personal property, real property, or IP dispute; or a clause regarding ownership of IP).
What is a nash equilibrium what is this equilibrium called : There are one firm and two types (low-ability and high-ability) of workers. The cost of attending a college is $8,000 for a high-ability person and $20,000 for a low-ability person. What is a Nash equilibrium? What is this equilibrium called
Identify the basic principles of business : Identify the basic principles of business including the way in which businesses operate and the factors that influence the process of making managerial decisions.
Design and implement an application : After all inputhas been processed, print all of the values (with the number ofoccurrences) that were entered one or more times.
What is the return from one year of experience calculated : The first group of Mexican immigrants arrived at U.S. in 1960. They were at the age of 20 and earned $30,000. What is the return from one year of experience calculated by this information
Choose a single toxicant and explain : Choose a single toxicant, and explain how it can impact the immune system, respiratory system, and the liver. This paper should consist of a minimum of two pages and utilize at least two reliable references in addition to the textbook. One of your..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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