Q: Given that δ(subscript t)=0.08/(1-2t), find the accumulation factor a(t)
A: Integration:Integration means, as its name suggests, it is the summation of all parts to find the…
Q: 1. Which of the following is not a potential source of comparative advantage for China in the…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: 2. Efficiency in the presence of externalities Public wifi hotspots grant many external benefits on…
A: Externality refers to the spillover effect of an economic activity on the part of the society which…
Q: QUESTION 5 There are two countries: A and B. Here, we consider the trade equilibrium with…
A: The definition of trade can be simplified in a single sentence, the achievement of needs by using…
Q: Looking at the following plot of a firm's production function, represented by isoquants for…
A: Isoquant is a contour line which shows different combinations of input producing the same level of…
Q: Suppose the government has elected not to impose regulations on the industry, and so the firm faces…
A: Since you have posted multiple questions, we will provide the solution only for the first question…
Q: A new bottle-capping machine costs $45 000, including $5000 for installation. The machine is…
A: For the calculation of the economic life of the bottle capper, we need to calculate the equivalent…
Q: For the next two questions, consider an economy that has the following information: Its money supply…
A: Money supply (M) = $2000, growing at a rate of 3 percent annually.Average velocity (income velocity…
Q: The demand curve is downward sloping because 1.the price must rise to induce firms to increase…
A: The Law of Demand is a fundamental principle in economics that describes the relationship between…
Q: 34) Foreign exchange reserves are A) Held illegally by many countries. B) Holdings of foreign…
A: Foreign exchange reserves, frequently alluded to just as forex reserves or FX reserves, are assets…
Q: Refer to Exhibit 11-4. If a person's taxable income is $155,000, how much does he pay in taxes?…
A: It can be described as a payment that is imposed by the central authority of the nation to fund the…
Q: 175 125 100 80 Price Figure 14-7 270 322 515 MC A ATC AVC Quantity Refer to Figure 14-7. Suppose…
A: Fixed cost is defined as the cost which is not dependant on the level of output.Variable cost is the…
Q: Which is NOT TRUE regarding the diffusion of the printing press and printed books in Europe? O It…
A: The diffusion of the printing press and printed books in Europe refers to the spread and adoption of…
Q: Which of the following is the best example of a nonexcludable good or service? a public library O…
A: Nonexcludable:Nonexcludeable refers to a characteristic of a good or service for which it is…
Q: 4 3 с A B D a) Welfare declines because there is no local production. b) Welfare increases by C+D c)…
A: Consumer surplus is the area below the demand curve and above the price. The area measures the…
Q: The price of wheat increases. What happens in the market for wheat?
A: The demand curve is the downward sloping curve. Equilibrium is where the demand curve intersects the…
Q: Sylvia's annual salary increases from $100,000 to $109,500. Sylvia decides to increase the number of…
A: Income elasticity of demand helps to determine how much demand for a product or service will…
Q: Five people go to the supermarket to buy milk. Each person is equally likely to select…
A: (a) Probability that they each select a different brand:In this case, we want to find the…
Q: How does the more recent decline in international trade affect lives / quality of life in America?…
A: Trade War:A trade war is a situation where two or more countries engage in a series of tit-for-tat…
Q: Suppose that you are interested in choosing a set of investments {1,...,7} using 0 - 1 variables.…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Refer to the graph shown. During the Reagan Administration (1981 to 1989), tax rates were reduced…
A: Reduction in taxes while spending on defence increases which shows government spending increasing.…
Q: What is the opportunity cost of one sled for Winter?
A: Opportunity cost refers to decrease in the production of one good required to increase in the…
Q: find the price elasticity of demand at equilibrium
A: Demand supply represents quantities that are demanded at different price level. As the price…
Q: If a 26 percent increase in the price of Cheerios causes a 13 percent reduction in the number of…
A: Price elasticity of demand refers to the responsiveness of the quantity demanded of a product to a…
Q: Corn Sunscreen Mexico 300 150…
A: From the given table, it is concluded that Mexico can produce 300 units of corn by giving up 150…
Q: Quantity Private Value - Private Cost (Units) 1 2 3 4 S 6 (Dollars) 22 20 18 16 Select one: a. $2 O…
A: The table for private value, cost, and external benefit is provided below. Quantity Private…
Q: 1. Consider an economy where the production function takes the form Y = z(N + K), where N is labor…
A: ExplanationAxes:X-axis (Leisure): Represents the quantity of leisure (l). Leisure is essentially the…
Q: Which of the following mistakes do consumers commonly commit when making decisions? OA. They take…
A: Decision-making is the process by which a consumer decides to fulfill his needs. It helps him to…
Q: What would change if you found a new niche market to sell your product and your sales jumped to…
A: To analyze the situation, we'll calculate the accounting profit and economic profit and consider…
Q: 10. Refer to Table 5.1. If price increases from $10 to $20, the price elasticity of demand is a. 10.…
A: It can be defined as the concept that shows how much demand for the commodity by the consumer…
Q: The phrase "information economy" refers to the shift in the economy from: * O agricultural…
A: It can be defined as the concept that shows an increase in the activity related to the production,…
Q: Three families are considering putting streetlights in their street as it is very dark at night. The…
A: Marginal benefit refers to the additional satisfaction or gain obtained from consuming or producing…
Q: For each of the proposals, use the previous graph to determine the new number of laboratory aides…
A: Demand-supply equilibrium:The demand function reflects an individual’s willingness to pay for each…
Q: 1. Consider the economy of Avataria, which can be described by the Solow model. Avataria has the…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: For a given level of inflation, if concerns about future weakness in the economy cause businesses to…
A: The correct option is:b) short-run aggregate supply line, downwardHere's why:Businesses' decreased…
Q: Consider the cross-price elasticities of demand for four pairs of goods: For goods A & B, the…
A: Cross price elasticity of demand measures the responsiveness in quantity demanded of a commodity to…
Q: According to new classical economists, A a change in the money supply will affect real GDP only if…
A: Monetary policy is a set of measures and actions taken by a central bank to regulate and control a…
Q: The profit maximizing price per ton of moving freight would be $[blank] The deadweight loss from…
A: A monopoly competitive firm refers to the type of firm where there exists only 1 seller and many…
Q: Demand in a competitive market is Qd(P)=120 – (4/10)*P. If 20 units are transacted, what is the…
A: Marginal willingness to pay (MWTP) is consumer willingness to pay for a unit of output. The point on…
Q: Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of…
A: Okun's Law is an empirical relationship that describes the inverse relationship between the…
Q: Raj consumes wine and face masks. His utility function is U(w,m) = min{vw,m}, where w and m are…
A: All commodity bundles with the same utility level are shown by the utility function. A graphical…
Q: Suppose you needed $37,000 to maintain a particular standard of living in 1983. How much would you…
A: An index that measures the average change in prices paid by consumers for a basket of goods and…
Q: The market for pizza has the following demand and supply schedules: 10 9 8 Price (Dollars) 4 5 6 7 8…
A: Equilibrium in economics refers to a state of balance or stability in a market where the quantity…
Q: 150 Marginal 100 product (units per day) 50 25 MP- 5 0 1 2 3 4 Quantity of labor (number of workers…
A: The law of diminishing returns is an economic principle that states that as one input factor (such…
Q: Which of the following goods are likely to be considered complements? a) Peanut butter and…
A: Complementary goods are those goods of combination which consumed together.These goods enhance…
Q: Price ($) 15 14 13 12 11 10 9 8 7 654321 S₁ S₂ D ⠀: 10 20 30 40 50 60 70 80 90 Quantity Suppose that…
A: Consumer surplus is the difference between the price that a consumer is willing to pay for a good or…
Q: Suppose that a market is described by the following supply and demand equations: Q³ = 2P QD=300-P A…
A: A tax when collected from sellers shifts the supply curve upward by the amount of the tax. This…
Q: QUESTION 10: Suppose you have the following utility function U(X,Y)=min{2X,Y} Again, let's assume…
A: A utility function is a thinking used in economics to signify how humans or buyers assign values or…
Q: International Macroeconomics-End of Chapter Problem During his presidency, Donald Trump attempted to…
A: When a country imposes a tariff on the goods imported from another nation then, in that case, the…
Q: Please refer to the table below Price of iPhones $700.00 $650.00 $500.00 $450.00 $300,00 $275.00…
A: Market demand refers to the aggregate of the individual demands for an item from the sellers in the…
There is a city, which looks like a trapezoid, as shown below. Citizens live
uniformly distributed all over the city. Two ice-cream vendors, A and B, must independently set up stores in the city. Each citizen buys from the vendor closest to their location and when equidistant from both vendors they choose by
coin toss. Each vendor’s aim is to maximize the expected number of customers. A choice of
location by the two vendors is a Nash equilibrium if no vendor can do better by deviating
unilaterally. Does this game have a Nash equilibrium? If so, describe it. If not, explain why not.
Step by step
Solved in 3 steps
- A computer reseller needs to decide how many laptops to order next month. The lowest end laptop costs $220 and the retailer can sell these for $300. However, the laptop manufacturer already announced that they are coming out with a new model in a couple of months. Any laptops that will not be sold by the end of next month will have to be heavily discounted at half-price. The reseller also needs to consider that every time he fails to fulfill a laptop order, he stands to lose $25 for every unit. Based on the past months’ sales, the reseller estimates the demand probabilities for sales (S) as follows: P(0 units) = 0.3; P(1 units) = 0.4; P(2 units) = 0.2; P(3 units) =0.1. The reseller thinks it’s a good idea to conduct a survey on whether or not his customers are going to buy laptops and how many. The survey results will either be Yes (Y), No (N) or Don’t Know (DK). The probability estimates of the results based on the demand for number of units are: P(Y|S = 0 units) = 0.1 P(Y|S = 1…A computer reseller needs to decide how many laptops to order next month. The lowest end laptop costs $220 and the retailer can sell these for $300. However, the laptop manufacturer already announced that they are coming out with a new model in a couple of months. Any laptops that will not be sold by the end of next month will have to be heavily discounted at half-price. The reseller also needs to consider that every time he fails to fulfill a laptop order, he stands to lose $25 for every unit. Based on the past months’ sales, the reseller estimates the demand probabilities for sales (S) as follows: P(0 units) = 0.3; P(1 units) = 0.4; P(2 units) = 0.2; P(3 units) =0.1. The reseller thinks it’s a good idea to conduct a survey on whether or not his customers are going to buy laptops and how many. The survey results will either be Yes (Y), No (N) or Don’t Know (DK). The probability estimates of the results based on the demand for number of units are: P(Y|S = 0 units) = 0.1 P(Y|S = 1…Shimadzu, a manufacturer of precise scientific instruments, relies heavily on the efforts of its local salespeople. Selling an instrument requires either luck, high effort, or some combination of the two. A salesperson who chooses to work hard (put in high effort) has a 40 percent chance (probability of 0.4) of selling an instrument in a given year while a salesperson who chooses to slack off (put in low effort) has a 20 percent chance (probability of 0.2) of making a sale. Practically no one manages to sell more than one instrument in a single year. Contracts for salespeople are designed on a year-by-year basis. Sales staff members do not mind risk; they choose employers based only on expected wage and the disutility of effort. Disutility of effort is equivalent to $20,000 per year if they work hard and $0 if they slack off. Even if a salesperson slacks off, he or she requires a salary of at least $50,000 not to seek alternate employment. (So, the worker's net payoff in alternative…
- A computer reseller needs to decide how many laptops to order next month. The lowest end laptop costs $220 and the retailer can sell these for $300. However, the laptop manufacturer already announced that they are coming out with a new model in a couple of months. Any laptops that will not be sold by the end of next month will have to be heavily discounted at half-price. The reseller also needs to consider that every time he fails to fulfill a laptop order, he stands to lose $25 for every unit. Based on the past months’ sales, the reseller estimates the demand probabilities for sales (S) as follows: P(0 units) = 0.3; P(1 units) = 0.4; P(2 units) = 0.2; P(3 units) =0.1. The reseller thinks it’s a good idea to conduct a survey on whether or not his customers are going to buy laptops and how many. The survey results will either be Yes (Y), No (N), or Don’t Know (DK). The probability estimates of the results based on the demand for the number of units are: P(Y|S = 0 units) = 0.1…Consumers are located uniformly across the street, with their location ranging between 0 and 1. There are two apple sellers in the market (Seller 1 and Seller 2) who must decide where to locate their shops. Consumers prefers to travel a shorter distance to a seller: (i.e. if Seller 1 is located at 0.3 and Seller 2 is located at 0.8, a consumer located at 0.5 will buy ice cream from Seller 1). If both sellers are in the same location, they split the market. (a) Set-up a matrix for a game in which sellers have one of three options: (i) locating at 0, (ii) locating at 1/2, or (iii) locating at 1; and write down the associated payoffs.Halsen, a marketing manager at Business X, has determined four possible strategies (X1, X2, X3, and X4) for promoting the Product X in London. She also knows that major competitor Product Y has 4 competitive actions (Y1, Y2, Y3 and Y4) it’s using to promote its product in London, too. Ms. Halsen has no previous knowledge that would allow her to determine probabilities of success of any of the four strategies. She formulates the matrix below to show the various Business X strategies and the resulting profit, depending on the competitive action used by Business Y. Determine which strategy Ms. Halsen should select using. Maximax, maximin or minimax regret? Business X Strategy Business Y Strategy Y1 Y2 Y3 Y4 X1 25 57 21 26 X2 17 29 20 34 X3 47 31 32 37 X4 35 27 30 35
- Halsen, a marketing manager at Business X, has determined four possible strategies (X1, X2, X3, and X4) for promoting the Product X in London. She also knows that major competitor Product Y has 4 competitive actions (Y1, Y2, Y3 and Y4) it’s using to promote its product in London, too. Ms. Halsen has no previous knowledge that would allow her to determine probabilities of success of any of the four strategies. She formulates the matrix below to show the various Business X strategies and the resulting profit, depending on the competitive action used by Business Y. Determine which strategy Ms. Halsen should select using, the following decision criteria. Please explain your answer for each strategy. a)Maximax; b)Maximin; c)Minimax regret Business X Strategy Business Y Strategy Y1 Y2 Y3 Y4 X1 25 57 21 26 X2 17 29 20 34 X3 47 31 32 37 X4 35 27 30 35A clothing manutacturer must decide which of two clothing lines to emphasze for the spring season, her usual line or a budget line Her success with each line depends on the sta Budget Line Usual Line Strong Economy 15,000 35,000 In-between Economy 18,000 28,000 Weak Economy 27,000 10,000 Economists believe that there is a 5% chance of a strong economy next year, a 75% chance of a weak economy, and a 20% chance of an in-between economy Use the payoff m O A. Emphasize the usual line O B. Wait and see O C. Emphasize the budget lineYou hold an oral, or English, auction among three bidders. You estimate that each bidder has a value of either $40 or $50 for the item, and you attach probabilities to each value of 50%. The winning bidder must pay a price equal to the second highest bid. The following table lists the eight possible combinations for bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder. Combination Number Bidder 1 Value Bidder 2 Value Bidder 3 Value Probability Price ($) ($) ($) 1 $40 $40 $40 0.125 2 $40 $40 $50 0.125 3 $40 $50 $40 0.125 4 $40 $50 $50 0.125 5 $50 $40 $40 0.125 6 $50 $40 $50 0.125 7 $50 $50 $40 0.125 8 $50 $50 $50 0.125 The expected price paid is . Suppose that bidders 1 and 2 collude and would be willing to bid up to a maximum of their values, but the two bidders would not be willing to bid against each…
- You hold an oral, or English, auction among three bidders. You estimate that each bidder has a value of either $100 or $125 for the item, and you attach probabilities to each value of 50%. The winning bidder must pay a price equal to the second highest bid. The following table lists the eight possible combinations for bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder. Bidder 1 Value Bidder 2 Value Bidder 3 Value Probability Price ($) ($) ($) $100 $100 $100 0.125 $100$100$1250.125 $100$125$1000.125 $100$125$1250.125 $125$100$1000.125 $125$100$1250.125 $125$125$1000.125 $125$125$1250.125 The expected price paid is . Suppose that bidders 1 and 2 collude and would be willing to bid up to a maximum of their values, but the two bidders would not be willing to bid against each other. The probabilities of the combinations of bidders are still…The table below shows that a sales agent can work with either low, or high amount of effort. Low effort generates$30,000, $60,000 or $100,000 profit (with probability given below), while high effort generates 60,000; 100,000 or 150, 000 (with probability given below) depending on some random factors. Bad luck (P=0.3) Medium luck (P=0.3) Good luck (P=0.4) Low effort (a=0) $30,000 $60,000 $100,000 High effort (a=1) $60,000 $100,000 $150,000 The cost of low effort is 0 and the cost of high effort is $10,000 (Formally, c=$10,000a). The net wage is wage minus cost of effort and the net profit is total profit minus wage. Suppose the firm offers the repair person a fixed wage of 13,000, what will be the net wage of the repair person and the net profit of the owner? Suppose now the owner offers the repair person the following bonus arrangement What will be the net wage of the repair person? What will be the net profit of the owner? Specify…Individual A Cooperate Defect Individual B Cooperate 28, 28 34,8 Defect 8, 34 12, 12 Suppose individuals live in villages that are homogeneous by type and a fractions of their interactions takes place in their village, the rest occurring in the city where the types were mixed. The fraction of the population who are cooperators is a. a) Write the expected return functions for cooperate and defect as a function of s and a. b) Under which conditions does an interior equilibrium exist for the fraction of the population playing cooperate (a) c) If the interior equilibrium for a exists, is the interior equilibrium unstable or stable? d) Find the impact of higher s on the interior equilibrium for a. What intuitively does this outcome mean? Discuss your answer.