+1-415-315-9853

info@mywordsolution.com

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

1. Consider a model of Cournot competition, with 2 firms and a linear inverse demand function  P(Q) =  a –  Q (where  Q  =  q1 +  q2 is the total quantity produced by the two firms and  a is a parameter). The firms have different marginal costs: c1 for Firm 1 and c2 for Firm 2.

(a) Find the Nash equilibrium.

(b) Assume Firm 1’s marginal cost is larger (c1 >  c2). Which firm produces more in equilibrium? How do the quantities produced in equilibrium change if Firm 1 improves its technology, leading to a lower c1 (while c2 is unchanged)?

(c) Find the total quantity produced and each firm’s profit in equilibrium. Describe what happens to these when Firm 1 changes its technology as above.

2. Two people are engaged in a joint project. If each person i puts in the effort xi, the outcome of the project is worth  f(x1, x2). Each person’s effort level xi is a number between [0,1], and effort costs c(xi). The worth of the project is split equally between the two people, regardless of their effort levels, so the net payoff of each player is  f(x1, x2)/2 - c(xi).

Draw the players Best Responses, and find the Nash equilibria when

(i) f(x1, x2) = 3x1x2 and c(xi) = xi2, for i = 1, 2.
(ii) f(x1, x2) = 4x1x2 and c(xi) = xi, for i = 1, 2.

Provide a brief interpretation in each case.

3. Find all the Nash equilibria (both pure and mixed) of the 2-player game below.

L       M       R
A  -1,1    3,1     1,2
B    3,3   2,-1    0,0
C    0,0   0,2     3,3

4. Consider the following 2-player game:

L     R
U  2,2   1,2
D  5,1   0,0

(a) Allowing for mixed strategies, graph the Best Responses.
(b) Give all the Nash equilibria (pure and mixed) of this game.

Macroeconomics, Economics

• Category:- Macroeconomics
• Reference No.:- M91243
• Price:- \$45

Guranteed 36 Hours Delivery, In Price:- \$45

Have any Question?

## Related Questions in Macroeconomics

### Describe what social engineering is and explain its

Describe what social engineering is and explain its existence and prevalence. Explain why SE is an important part of an information technology security course. Discuss employee and management responsibilities with regard ...

### Use the concept of opportunity cost to explain the

Use the concept of opportunity cost to explain the following situations: 1) More people choose to get graduate degrees when the job market is poor. 2) More people choose to do their own home repairs when the economy is s ...

### Tariffsgo to the web site of theus international trade

Tariffs Go to the Web site of theU.S. International Trade Commission(http://www.usitc.gov/) and locate a product that you are interested in or that the company you work for produces. (Hint: At this site, click Industry a ...

### Assignment1 what is your opinion of the patriot act as

Assignment 1. What is your opinion of the Patriot Act as outlined in the lecture. Do you feel it was necessary to pass this act to ensure American homeland security? Explain your reasoning. 2. You've read in the lecture ...

### A tax on dairy products is one public policy initiative

A tax on dairy products is one public policy initiative that the government might consider. Perform appropriate economic analysis to explain how such a tax could be used to address the animal welfare and environmental co ...

### For this question hurricane katrina damaged a large portion

For this question, Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to ...

### In 2-3 paragraphs respondmuch has been made of the fact

In 2-3 paragraphs respond: Much has been made of the fact that people don't consistently act with scientific rationality. What is meant by rationality ? Consider the three "systematic mistakes" discussed in your text. It ...

### 1 which costs are caused by unemployment2 calculate the

1. Which costs are caused by unemployment? 2. Calculate the unemployment rate:  Number of inhabitants: 10 million Labour-force participation: 62 % Unemployed persons: 455'000 3. Which types of unemployment are there?  Wh ...

### Per capita real gdp is given by the equation y ypn where y

Per capita real GDP is given by the equation y = Y/PN, where Y is nominal GDP, P is the GDP deflator, and N is population. In the United States, if the average growth rate of nominal GDP is 2.8 percent, inflation is 1.6 ...

### 1 economics - is the study of the forces between supply and

1. Economics - is the study of the forces between supply and demand and the impact they have on allocation of scarce resources. Economics can be subdivided into two categories one is microeconomics and the second categor ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

### What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

### Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

### Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

### Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate