Ask Question, Ask an Expert


Ask Microeconomics Expert

Problem1. Two firms, A and B, are planning to propose for a contract of Motorway extension in Mauritius. Assume:

(1) Firm B is a newly established company and has already acquired a start-up cost of $25 million;

(2) A and B simultaneously select to quote either a high or low price;

(3) If both A and B quote the same price, the contract is awarded to A since it has been in market for a long period of time;

(4) If both firms submit high price, A nets $300 million;

(5) If both firms submit low price, A nets $100 million;

(6) If A prices high and B prices low, B nets $100 million (after the initial investment) and A nets $0.


problem1. Make the strategic-form game for the above strategic bidding problem.

problem2. Describe the dominant strategy and the Nash equilibrium of game.

problem3. The government is the big winner in this case. Describe why. 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M95483

Have any Question? 

Related Questions in Microeconomics

Assignmentin many instances public relations activities

Assignment In many instances public relations activities take the form of damage control, and in these instances, the firm is in a reactive public relations strategy mode. Although a reactive strategy may seem a contradi ...

1 black-scholes pde show that the black-scholes price for a

1. Black-Scholes PDE: Show that the Black-Scholes price for a European Put with strike K and expiration T P(t; S t ) = Ke -r(T- t) Φ(-d 2 (T - t, S t )) - S t Φ(-d 1 (T - t, S t )), where d 1 (T - t, S t ) = (log{S t /K} ...

Microeconomics - cost elements of a businessassignmentin

Microeconomics - Cost Elements of a Business Assignment In this Assignment, you will define and calculate the remaining six major cost elements of a business, when given the Total Costs and the Quantity Produced, as well ...

1 explain the difference between explicit and implicit

1) Explain the difference between explicit and implicit costs of production. 2) Explain the reasoning behind the U-shaped, long-run, average cost curve. 3) Explain the law of diminishing marginal returns. 4) Describe eco ...

Assignmentlearning activity 1this learning activity focuses

Assignment Learning Activity 1: This learning activity focuses on jurisdiction and ADR. Review closely all assigned materials regarding the legal system. Case Scenario: Ali owns and operates a florist business, Blooming ...

Assignmentthe best time to plan for a crisis is before it

Assignment The best time to plan for a crisis is before it occurs, certainly not when you're in the midst of one. Basel III has a new framework for managing bank liquidity.The liquidity coverage ratio (LCR) is for a shor ...

Topic 1 costs and economies of scaleyou have learned a good

Topic 1: Costs and Economies of Scale You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently. Moreover, many suppli ...

Supply and demand draw curvea define economicsb what do we

Supply and Demand Draw Curve A: Define Economics B: What do we mean by "Scarcity" and how does that relate to the concept of "Opportunity Cost"? C: Distinguish between :macroeconomics" and :microeconomics" D: Distinguish ...

Economicsread the case study on page 27 protecting

Economics Read the case study on page 27 "Protecting Endangered Species with Private Property Rights." Write an essay 1,000-1,250 words, answering the following questions: 1. Economists argue that scarcity is different t ...

Httpswwwyoutubecomwatchvkgsiduyw7wwhat was the promise of What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

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