Game Theory

Homer and Marge are playing the attached simultaneous-move, one-shot game. (a) Does either player have a strictly dominant strategy? (b) What is the solution to this game? Is the solution a Nash equilibrium? (c) Suppose that this simultaneous-move game is modeled as a sequential-move game with Homer moving first. Illustrate ...continues

Hemlock Econ problem

Can you please show me the step by step solutions to #2. I have attached the answer key to the practice quesstions. Please provide comprehensive/correct answers. I ONLY need help with #2(Hemlock Bush problem).

microecon

Problem 1 List the conditions than need to hold for a long run competitive equilibrium. Problem 2 A number of stores offer film developing as a service to their costumers. Suppose that each store that offers this service has a cost function C(q)=50+0.5q+0.08q2 . (a) If the current rate for developing a roll of film is $8. ...continues

Producers, consumers, and competitive markets

Suppose that a competitive firm's marginal cost of producing output q is given by MC(q)=3+2q. Assume that the market price of the firm's product is $9. a. What level of output will the firm produce? b. What is the firm's producer surplus? c. Suppose that the average variable cost of the firm is given by AVC(q)=3+q. Sup ...continues

microecon

Assignment 6: Profit maximization and Competitive Supply Due Tuesday, November 30, 2004 List the conditions than need to hold for a long run competitive equilibrium. Problem 2 A number of stores offer film developing as a service to their costumers. Suppose that each store that offers this service has a cost function C(q)=5 ...continues

Competitive Markets

Suppose you are given the following information about a particular industry: QD = 6500 - 100P Market Demand QS = 1200P Market Supply C(q) = 722 + q2/200 Firm total cost function MC(q) = 2q/200 Firm marginal cost function Assume that all firms are identical and that the market is characterized by p ...continues

Long-Run Equilibrium

A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function C(q) = 50 + 0.5q + 0.08q2 and a marginal cost MC = 0.5 + 0.16q. Q: If the going rate for developing a roll of film is $8.50, is the industry in long-run equilibrium? If not, find the p ...continues

Output of Profit Maximizing Monopolist; Marginal Benefits

1. Explain what, if any, each of the following government actions will have on the output of a profit maximizing monopolist, assuming that none of the actions is so severe as to make the monopolist shut down. Use a graphical model to demonstrate each of the following effects. a. A licence fee to be paid for the privilege of ope ...continues

I need help with problem 2(continuing from one) I have attached what I have for problem 1

Problem I. Each of 5000 consumers that are buyers of goods X and Y per period has the utility function: U = 56X0.3Y0.7 where X is the number of units of good X consumed and Y represents all other goods that the consumer purchases. The income of each consumer is $1000. You may assume the price of Y is $1 per unit of ...continues

7059- micoeco

Subject: Microeconomics problem Details: A consumer with the money-left-over utility function u(x) + m = 10 ln(x+1) +m is endowed with 100 units of x and $1000. This consumer can buy or sell the commodity in question, depending on its price. If, for instance, the price of x is $4 per unit and the consumer sells 25 units, she e ...continues