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matrix:
Player 2
L R
Player 1 L 1;- 1 -1; 1
H -1; 1 1;-1
1. How many Nash equilibria (in pure and mixed strategies) exist?
2. Compute the best-reply functions and provide a graphical representation of the equilibrium
a) Construct a graph that includes the demand curve, the supply curve, and the social marginal cost (MSC) curve.
b) Solve for the free market equilibrium quantity and label this on your graph.
c) Calculate the consumer surplus, producer surplus, and total externality costs in the free market. Label these on your graph. Calculate the total surplus.
d) Solve for the efficient quantity, taking into account all societal costs and benefits.
Suppose a Pigovian tax is proposed to correct the market failure.
e) How large should the tax be to achieve the efficient outcome?
A.what is the long run equilibrium in market?
B.the fixed cost decrease to 81 dollar?
C.the marginal cost rise 5 dollar per pizza?
Qsx=20Px;where Qsx is the quantity supplied and Px is the price per unit.
a)derive the producer's supply schedule
b) derive the producer's supply curve
c) what things have been kept constant in the given supply function
d)what is the minimum price that this producer must be offered in order to induce him to start supplying good X to the market?
3. Mary Graham worked as a real estate agent for Piedmont Properties for 15 years.
Her annual income is approximately $100,000 per year. Mary is considering establishing her own real estate agency. She expects to generate revenues during the first year of $2 million. Salaries paid to her employees are expected to total $1.5 million. Operating expenses (i.e., rent, supplies, utility services) are expected to total $250,000. To begin the business, Mary must borrow $500,000 from her bank at an interest rate of 15 percent. Equipment will cost Mary $50,000. At the end of one year, the value of this equipment will be $30,000, even though the depreciation expense for tax purposes is only $5,000 during the first year.
a. Determine the (pre-tax) accounting profit for this venture.
b. Determine the (pre-tax) economic profit for this venture.
c. Which of the costs for this firm are explicit and which are implicit?
2. Suppose demand for lunch box is Qp = 40-P / 5 and the supply of it is Qs = P / 5. Calculate the equilibrium price and quantity of lunch box in this district. Show your answer graphically. (4/20) b. If the price of lunch box cannot be set above%2450. Calculate the "shortage" in this market. Explain your answer with a graph. (2/20) Calculate the price elasticities of demand and supply at quantity demanded and quantity supplied under such a condition.
Negative externalities practical question
Describe the various complementary products, both goods and services, that a consumer may consider in buying a computer system.
#340153 on Dec 2023