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Suppose several friends go out to dinner with the understanding that the bill will be divided equally. The problem is that someone might order something expensive, knowing that part of the cost will be paid by others. To analyze the situation, suppose there are n diners and for simplicity they have the same food preferences. The accompanying table states the price of each of three dishes on the menu and how much each person values it. Value is measured by the maximum amount the person would be willing to pay for the meal. dish value price surplus pasta $21 $14 $7 salmon $26 $21 $5 steak $29 $30 -$1 a) suppose there are two diners. What will they order (at a Nash equilibrium)? b)suppose there are four diners. What will they order (at a Nash equilibrium)?
For proportional tax system presented in table 7, illustrate what are average tax rates for people earning $50,000, $100,000 and $200,000. Illustrate what are corresponding average tax rates in regressive and progressive tax systems.
Illustrate what is macroeconomics. What role does macroeconomics play in your personal financial decisions and the decisions that your organization makes.
Suppose that the only input used in the generation of solar energy is sunlight
Gains from trade will result if a country specializes.
Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..
Explain how much profit will the perfectly competitive firms earn. Explain how much profit will the monopoly firm earn.
Suppose firms compete in quantities. How much does each firm sell in Cournot equilibrium.
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How would a law preventing landlords from charging above $900 give different results. What is such a price restriction called.
Explain how are you morally justifying your decision. Remember to use professional e-mail etiquette when composing your e-mail.
Illustrate what financial market yield data can the Federal use to determine if longer term inflation expectations are well anchored
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
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