Microeconomics Answers

Advance Nash equilibrium exercise Microeconomics

Consider a two-player game that satisfies the hypotheses of the existence theorem (see below). Let N={1,2}  and suppose the game is symmetric, ie.:

1. A_1 = A_2

2. for all a,b in A

Use Kakutani's Theorem to prove that exists an element a^*₁ in A₁ such that (a^*_1, a^*₁)  is a Nash equilibrium (such an equilibrium is called a symmetric equilibrium).

Theorem (Existence):

Consider the gameIf for all i: A_i is a non-empty, convex, compact subset of R^n:

1.is quasi concave

2.is continuous.

So, there is a Nash equilibrium in pure strategies.

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the marginal social cost of garbage disposed is: MSCd (gd) = 10, where gd is a 50 gallon drum of garbage disposed. The marginal cost of recycling is: MSCr (gr) = 2gr, where gr is a 50 gallon can of recyclables collected. The marginal benefit for the resident of garbage removed from the residence is: MB(gd, gr) = 800 - 2(gd + gr).

At an economically efficient level, how many [ ] 50-gallon cans of materials a resident shall recycle? (Assuming most of residential waste generated can be recycled, i.e., the resident can recycle as much as desired.)

Question:

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

PriceQuantity Demanded (business travelers)Quantity Demanded (vacationers)$150 2,100tickets 1,000tickets 200 2,000 800 250 1,900 600 300 1,800 400 ( a. ) As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers?

Draw a figure with cost (average total cost and marginal cost), demand, and marginal revenue curves for the monopolist

two sub-companies A and B produce cars, they work out their daily profit (p) based on the following formulas; Company A: p=-2c² + 26c – 60 Where p is the profit in 1,000 of pounds and c is the number of cars produced per day. Top management are interested in the following issues: Company B: p=-c' + 9c² – 60 i) Sketch the graph of company A's profit p for c in the range 0 to 13 and company B's profit p for c in the range 0 to 9, on the same graph. ii) Within what values of c does company A make a profit? iii) For what numbers of cars produced does each company make their largest profit? iv) Between what values of c does company B make a larger profit than company A? v) What value of c gives the largest difference in the profits of the two companies, WITHIN the interval found in part iv) of this question?

If the price of profiteroles decreases from $1.10 to $0.90, and the quantity demanded of profiteroles does not change, then the price elasticity of demand, obtained using the midpoint method, is:

Discuss the micro (the importance of transportation for specific parts of the economy such as to producer, consumer, and distribution costs) and macroeconomic (the importance of transportation for a whole economy linked to a level of output, employment, and income within a national economy) impacts of modern maritime transportation.                                            

the marginal social cost of garbage disposed is: MSCd (gd) = 10, where gd is a 50 gallon drum of garbage disposed. The marginal cost of recycling is: MSCr (gr) = 2gr, where gr is a 50 gallon can of recyclables collected. The marginal benefit for the resident of garbage removed from the residence is: MB(gd, gr) = 800 - 2(gd + gr).

At an economically efficient level, how many [ ] 50-gallon cans of materials a resident shall recycle? (Assuming most of residential waste generated can be recycled, i.e., the resident can recycle as much as desired.)

with price ceiling set 40, the number of hamburgers that buyers want to buy is 60,00. But the number of hamburgers that is actually bought and sold in the hamburger is only 40,000. why does the quantity supplied determine the quantity bought and sold in the market?