Consider a game in which there is $4 to be divided, and the first mover is only permitted to make one of three proposals: (a) $3 for the first mover and $1 for the second mover, (b) $2 for each, or (c) $1 for the first movier and $3 for the second mover. The second mover is shown the proposal and can either accept, in which case it is implemented, or reject and cause each to earn $0. Show this game in extensive (tree) form. Be sure to show the payoffs for each person, with the first mover listed on the left, for each of the six terminal nodes.
Q: An economic downturn has caused the labor demand to decrease from DO to D1. In the short-run what…
A: The labor market includes;Demand for labor (D)Supply of labor (S)The level of employment and the…
Q: A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a…
A: Banks generate profits primarily through the intermediation process, where they accept deposits from…
Q: Moving to another question will save this response. Question 8 High litigation costs for the…
A: The correct answer is A. encourage too little precaution because the Injurers know that the…
Q: Your professor has $20 to spend on Sour Patch Kids and Cherry Coke Zero, the two supplies most…
A: A budget constraint, in economics, refers to the limitation a consumer faces when trying to buy…
Q: ow could sustainable development contribute to economic progress in developing countries
A: Developing countries are defined by a variety of economic and social factors. They are often known…
Q: Consider the economy of Canada. Its households spend 55% of increases in their income and saves 45…
A: The problem is to estimate the size of a tax cut necessary in the Canadian economy for the actual…
Q: Problem 3: Two plans for a hydroelectric project in Peru have been proposed. The opportunity cost,…
A: Internal rate of return (IRR) refers to the discount rate of a project wherein its net present value…
Q: 1. If a consumer's net demands are (6, 1), what are her gross demands? (-4, 3) and her endowment is
A: The issue is to do with finding the gross demands of a consumer, based on her net wants and…
Q: Read Pakistan's economic history carefully. Based on this assessment do you think Pakistan economic…
A: An area of economics known as "development economics" studies the factors and processes that affect…
Q: Every year, there is some form of construction work going on at UF's campus. In January 2018, bids…
A: The average inflation rate is a measure of the rate at which the general level of prices for goods…
Q: When the Consumer Price Index decreases from 105 to 100 a. more money is needed to buy the…
A: The objective of the question is to understand the relationship between the Consumer Price Index…
Q: Consumer Surplus Producer Surplus Neither о Identify whether each of the following statements best…
A: Consumer Surplus refers to the surplus available to the buyer. It is calculated as the difference…
Q: Please answer in detail according to the picture. Show that the cost function is homogeneous of…
A: Cost Function Homogeneity: The cost function, C(y, w, r), for a Cobb-Douglas production function is…
Q: You are given the following information. The current dollar/euro exchange rate is 1.25 dollars per…
A: The rate of inflation is defined as an increase in price levels of goods and services over a year,…
Q: 2-Use the diagram below as a reference point. Assume that a firm produces output Q. What happens to…
A: Let's establish the shape of Marginal Product (MP) at the quantity level Q, using the cost curve…
Q: view picture
A: In 1964, the national debt increased by $5.9 billion. This increase occurred because the outlays…
Q: 1. Consider a monopoly firm with the total cost function C(q) = 120 + 6q and the inverse market…
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: Nubia maximizes U(Y) = ln(Y) and is exposed to the lottery L = (800, -800; .5). An insurance policy…
A: In the context of insurance, a premium is the amount of money that an individual or entity pays to…
Q: If you can't see the graph below: Shows the demand, private cost, and social cost curves. Social…
A: An externality is a cost or benefit that affects a party who did not choose to incur that cost or…
Q: Price level targeting: (1-7) Pe+YPO + (1+ yt) 12' 1 2π* Inflation averaging: (1) S Pt+Pt-s+12 where…
A: Central banks use price level targets to keep prices stable over the long term, which helps the…
Q: Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $ 0.61…
A: A capital is a broad term known as cash or liquid asset, that has monetary value. It is the…
Q: 43.80 37.60 26.75 a 22.50 b 18.60 (Marginal Social Costs) (Marginal Private Costs) Marginal Social…
A: A free market does not experience any government intervention. All the resources are owned by…
Q: Suppose that a price ceiling of 10 is imposed on the market shown in the figure below. How much…
A: Answer :- at the price ceiling 10 the created shortage is equal to 200 Quantity. Explanation:Step…
Q: Which of the following movements would be consistent with the government budget going from deficit…
A: The market for loanable funds (LF) consists of;savers: those who supply funds. It can include…
Q: Q#2 Graph the EUAC or EUAB of the following two mutually exclusive alternatives. Use interest rate…
A: EUAC or, Equivalent Uniform Annual Cost can be calculated by:Where, EUAB or, Equivalent Uniform…
Q: 40 40 A Baicun 20 10 1. If the economy is operating at point C in the PPF below, the opportunity…
A: Production possibility curve (PPC) refers to the graphical representation of all possible…
Q: Instructions: Manipulate the settings in the interactive tool as needed, and observe the resulting…
A: Domestic quantity supplied = 110Domestic Quantity Demanded = 190 world price = $800Domestic price =…
Q: Aldrin is a call center agent and has a daily wage of ₱ 2500. Aldrin takes an antihistamine drug…
A: A methodical technique for assessing the possible costs and advantages of a decision is cost-benefit…
Q: 2. What is the expected profit for this project? (a) $540,000 (b) $0 (c) $600,000 (d) $530,000 (e)…
A: The "optimal" strategy is the firm's decision which gives the highest expected value. The "optimal"…
Q: Should fiscal policy encourage more consumption or more saving? Does it matter? I need a reason why.
A: The fiscal (F) and monetary (M) policies help to control and maintain economic fluctuations such as…
Q: Consider two identical countries, a and b, in our standard overlapping generations model. In each…
A: The objective of the question is to understand the value of currency and consumption in two…
Q: PRICE (Dollars per unit) 270 Y Supply 135- 30 22.5 - W 0 V 6 15 48 54 QUANTITY (Units) For each of…
A: A.Between V and W: ElasticBetween X and Y: InelasticB. TrueExplanation:Question A. To calculate the…
Q: Random errors in establishing the appropriate level of care (x*) will create an incentive for…
A: Random errors refer to a change in difference between the observed or true value of something. It is…
Q: Downvote will be given so pls Economics: What is the term used to describe inflation that is…
A: The question has two parts. The first part is asking for the term that describes inflation…
Q: EOY 0 1 2 3 4 5 Cash Flow -200 80 50 60 70 150 for salvage value The payback period with 10%…
A: The objective of the question is to determine whether the payback period for the given cash flows…
Q: Question: In a perfectly competitive market, what is true about the long - run equilibrium? Options:…
A: In a perfectly competitive market, firms operate under conditions of perfect competition, where…
Q: The following table presents the weekly demand and supply in the market for sweatpants in Dallas.…
A: Market equilibrium in economics occurs when the amount of a product or service available (supply) is…
Q: or each of the annual inflation rates given in the following table, first determine the new price of…
A: Dalia is a sports fan and buys only football tickets. Dalia has $2000 which he deposits into a…
Q: Consider the extensive form game portrayed below. The top number at a terminal node is player 1’s…
A: Subgame perfect nash equilibrium is a form of nash equilibrium used in dynamic games. It provides…
Q: Which of the following are leakages from the circular flow of income? a. Savings, taxes, and imports…
A: The circular flow of income is a theoretical economic concept that illustrates how money and goods…
Q: (True or false) Demand is negativley sloped. Supplu is perfectly inelastic. Putting a sales tax on…
A: The question is asking whether the imposition of a sales tax on buyers in a market with negatively…
Q: MARR = 8%. Your consultancy business signs on with a new client. The client pays you $5000 up front…
A: b) 13%.Explanation:To solve this problem, we need to calculate the internal rate of return (IRR)…
Q: Answer the question on the basis of the following cost data: Average Average Fixed Variable Output…
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production…
Q: What happens to the budget line if the government applies a specific tax of $1 per gallon of…
A: The budget line represents all possible combinations of the goods that can be bought at the given…
Q: Maria's Mattress Mart operates in a perfectly competitive market. Maria is currently experiencing…
A: The issue is to comprehend the ramifications of a firm encountering financial misfortunes in a…
Q: Which of the following is(are) good example(s) for explaining the economic concept of scarcity? (We…
A: The concept of scarcity serves as a foundational principle shaping decision-making processes and…
Q: Suppose Hanger Helicopters is considering signing a long-term contract with the union representing…
A: In economics, nominal variables are the variables that are expressed in the current year's prices.…
Q: secure Internet servers (per million people) = 18,127 secure Internet servers (per million people) =…
A: The countries around the world have differences in economic and social factors. Some nations are…
Q: Price of Item A ($) Demand Schedule Supply Schedule 0 180 0 10 160 20 20 140 40 30 120 60 40 100 80…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Question: Which of the following fiscal policy tools involves the government spending more money…
A: a) Expansionary fiscal policy: Expansionary fiscal policy involves the government spending more…
Step by step
Solved in 3 steps with 2 images
- Consider the Normal Form Game characterized in the following figure: P1 \ P2 A1 A2 A3 A4 B1 B2 B3 B4 (-1,1) (0,0) (1,-1) (2,0) (-2,-2) (2,7) (-1,-1) (-1,1) (5,7) (3,5) (0,0) (0,8) (0,3) (-1,-1) (10,2) (0,0) Which is the set of rationalizable actions? O (A2, A4)x(B2, B3) O (A1, A2)x(B1, B2, B4) O (A1, A3)x(B1, B4) O (A1, A3, A4}x{B1, B3)Consider the following centipede game consisting of two players, Pl and P2. The left/right number each terminal node represents Pl's/P2's payoff, respectively. Then, answer the following questions of [D5] and [M5]-|M8]: P1 G P2 P1 G -(0, 2) D (2, 0) (1, 1) (4, 0) Suppose that P2 chooses G or D randomly. Then, what is the Pl's best response of P1 for the P2's choice? And explain why. We assume that random choice is level-0 in the level-k theory. Then, answer the P2's choice in level-2. (a) D (b) G (c) random choice on (G, D) (d) G with probability 1/3 Answer all the properties of Nash equilibrium and subgame perfect equilibrium which is derives from the backward induction. (a) All subgame perfect equilibria are Nash equilibria in any game. (b) All Nash equilibria are subgame perfect equilibria in any game. (c) There is always a unique Nash equilibrium in any game. (d) There exist pure-strategy Nash equilibria in any game. (e) The Nash equilibrium in prisoners' dilemma game is socially…Three married couples in the state of Maryland—Bob and Carol, Ted and Alice, and Ross and Mike (remember, same-sex marriage is legal in the state of Maryland)—are thinking about renting a boat to go sailing on the Chesapeake Bay. The cost of a boat rental is $600. Each of the three couples puts some amount of money in an envelope. Thus, each player in this game is a couple. If the total amount collected is at least $600, then the boat is rented. If the amount collected is more than $600, then the money left over after renting the boat is spent on wine. If the total amount collected is less than $600, then they do not rent the boat, and the money is spent on a dinner. Assume the benefit to a couple from the boat trip is 400, the benefit from each dollar spent on wine is 50 cents, the benefit from each dollar spent on dinner is 40 cents, and the personal cost of the contribution to a couple equals the amount of contribution. For example, if the boat is rented, $50 of wine is purchased…
- Consider the Normal Form Game characterized in the following figure: P1 \ P2 b1 b2 b3 a1 (1,2) (0,1) (0,3) a2 (3,-1) (1,1) (-1,0) a3 (2,2) (1,-1) (3,0) a4 (-5,1) (-1,0) (-3,-2) a5 (-3,3) (3,0) (2,4) What is the set of actions of player 1? O la 1, a2, a3, a4, a5) O (b1,b2, b3} O {a2, a3, a4) O (bl, b2}Consider the game shown below. In this game, players 1 and 2 must move at the same time without knowledge of the other player’s move. Player 1’s choices are shown in the row headings (A, B, C), Player 2’s choices are shown in the column headings (D, E, F). The first payoff is for the row player (Player 1) and the second payoff is for the column player (Player 2). Player 2 Player 1 D E F A 6, 8 4, 7 2, 9 B 2, 3 2, 6 4, 7 C 5, 4 7, 5 3, 6In 2003, Saudi Arabia and Venezuela produced an average of 8 million and 3 million barrels of oil a day, respectively. Production costs were about $10 a barrel and the price of oil averaged $28 per barrel. Each country had the capacity to produce an additional 1 million barrels per day. At that time, it was estimated that each country 1-million-barrel increase in supply would depress the average price of oil by $3. A. Draw a normal form representation of a game where Saudi Arabia has 2 possible actions to produce 8 million or 9 million barrels of oil and Venezuela has 2 possible actions: to produce 3 or 4 million barrels of oil. Fill in the payoffs for each player and action. Draw a table. B. What action should each country take and why? C. Does the asymmetry in the countries' sizes cause them to take different attitudes towards expanding out? Explain why or why not.
- Consider two players in the game-theoretic setting below: Player 2 Choice A Choice B Choice 20 |-30 A -20 30 Player 1 Choice |-30 40 B 30 -40 What is the (pure-strategy) Nash equilibrium? There are more than one (pure-strategy) Nash equilibria. O (P1, P2) = (A, B) is the only (pure-strategy) Nash equilibrium. O (P1, P2) = (A, A) is the only (pure-strategy) Nash equilibrium. O There is no (pure-strategy) Nash equilibrium. O (P1, P2) = (B, A) is the only (pure-strategy) Nash equilibrium. (P1, P2) = (B, B) is the only (pure-strategy) Nash equilibrium.Consider the game shown below. In this game, players 1 and 2 must move at the same time without knowledge of the other player’s move. Player 1’s choices are shown in the row headings (A, B, C, D), Player 2’s choices are shown in the column headings (E, F, G). The first payoff is for the row player (Player1) and the second payoff is for the column player (Player 2). Player 2 Player 1 E F G A 2, 7 7, 2 2, 6 B 5, 5 5, 4 8, 4 C 4, 6 8, 4 7, 5 D 1, 6 3, 5 6, 4 Highlight the correct answer: Player 1: Has a dominant strategy to choose A Has a dominant strategy to choose B Has a dominant strategy to choose C Has a dominant strategy to choose D Does not have a dominant strategy Player 2: Has a dominant strategy to choose E Has a dominant strategy to choose F Has a dominant strategy to choose G Does not have a dominant strategy The Nash equilibrium outcome to this game is: A/F B/E B/G C/F C/G There is no pure strategy Nash…Question 1 Consider the following game. Player 1 has 3 actions (Top, middle,Bottom) and player 2 has three actions (Left, Middle, Right). Each player chooses their action simultaneously. The game is played only once. The first element of the payoff vector is player 1’s payoff. Note that one of the payoffs to player 2 has been omitted (denoted by x). 1. Determine the range of values for x such that Player 2 has a strictly dominant strategy.
- Assume a Hawk -Dove game with the following payoff matrix, where the first entry is Animal A’s payoff, and the second entry is Animal B’s payoff: Animal A (rows)/Animal B (columns) Hawk Dove Hawk (-5,-5) (10,0) Dove (0,10) (4,4) An animal that plays Hawk will always fight until it wins or is badly hurt. An animal that plays Dove makes a bold display but retreats if his opponent starts to fight. If two Dove animals meet they share. Explain why there cannot be an equilibrium where all animals act as Doves. Explore whether there are any Nash equilibria in pure strategies and explain which these are and why. Derive a mixed strategy Nash equilibrium (MSNE). What is the proportion of Hawks and Doves? If the proportion of Hawks in the population of animals is greater than the mixed strategy equilibrium proportion you calculated, which strategy does better, Hawks of Doves? Explain your answer. Draw the best response functions and show in the…Two individuals are bargaining over the distribution of $100 in which payoffs must be in increments of $5. Each player must submit a one-time bid. If the sum of the bids is less than or equal to $100, each player gets the amount of the bid and the game ends. If the sum of the bids is greater than $100, the game ends and the players get nothing. Does this game have a Nash equilibrium? What is the most likely equilibrium strategy profile for this game?Person A English Chinese English 10,10 5,0 Person B Chinese 0,5 5,5 A) Find the Nash equilibria of this two-person game in mixed strategies. B) Is there an equilibrium in which everybody prefers speaking English? If yes, is it stable? C) Is there an equilibrium in where everybody prefers speaking Chinese? If yes, is it stable? D) Is there an equilibrium where some people prefer speaking English, and some prefer speaking Chinese? What is the equilibrium value of p, and is this equilibrium stable?