1. Questions

managerial economics

1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn’t matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.

Driver 2
Left Right
Driver 1 Left 0,0 -1000 -1000
Right -1000, -1000 0,0
a. Does either player have a dominant strategy? Explain.
b. Is there Nash equilibrium in this game? Explain
c. Why this game is called a cooperative game?

2.


a. What is the firm’s Total Revenue?
b. What is the Total Cost?
c. What is the firm’s Total Profits?
d. If the above monopolist were to behave like a perfectly competitive firm (operating in the long run), determine its output.

  1. 👍
  2. 👎
  3. 👁
paul

  1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn’t matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.

    Driver 2
    Left Right
    Driver 1 Left 0,0 -1000 -1000
    Right -1000, -1000 0,0
    a. Does either player have a dominant strategy? Explain.
    b. Is there Nash equilibrium in this game? Explain
    c. Why this game is called a cooperative game?

    2.

    a. What is the firm’s Total Revenue?
    b. What is the Total Cost?
    c. What is the firm’s Total Profits?
    d. If the above monopolist were to behave like a perfectly competitive firm (operating in the long run), determine its output.

    No one has answered this question yet.

    1. 👍
    2. 👎
    Anonymous

  2. a. Does either player have a dominant strategy? Explain. There is no choice that either player will always have a higher payoff regardless of what the other player does.

    b. Is there Nash equilibrium in this game? Explain
    According to the information provided I am assuming that both players know the strategy of each other, so my answer would be yes there is a Nash Equilibrium in this game. If the player prefer not to switch their strategy this is definitely consider Nash equilibrium which are (left, left) or payoff (0, 0) for players one or two. Also assuming each player knows the strategies of the other, then yes, there is no benefit to changing a strategy unilaterally.

    c. Why this game is called a cooperative game? Because in this game both players should be cooperative to ensure maximum payoff because, both adopting strategy A, to the highest payoff (say left, left) also players can earn higher payoffs if they work together and drive on the same side of the road.

    2.

    a. What is the firm’s Total Revenue? Produce were MR=MC, and charge price based on demand. So, total revenue is area A J E 0 (or A * E)

    b. What is the Total Cost? Total costs are shown by area B H E 0 (or B * E)

    c. What is the firm’s Total Profits? Total profits are area A J H B (or A-B * E)

    d. If the above monopolist were to behave like a perfectly competitive firm (operating in the long run), determine its output.
    In perfect competition the firm would produce where P = MC, so point N above

    1. 👍
    2. 👎
    Deindre-ann Moncrieffe

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    Sports team won twice as many games as they lost. The sum of games won and games lost was 42 games. How many games did they win?

  2. Statistics

    A basketball team has to play 3 games in an elimination roumd. What is the probability of them winning? A. 0 games B. 1 game C. 2 games D. 3 games

  3. SIXTH GRADE MATH

    The ratio of wins to losses for a basketball team is 2:3. Which of the following is a possible total number of games? A. 7 games B. 14 games C. 25 games D. 26 games Can someone show me how to solve this problem please?

  4. geomerty

    a baseball team played 161 regular season games. The ratio of the number of games they won to the number of games they lost was 4/3. how many games did they win? how many games did they lose? i don't understand what the question

  1. trig

    a hedgehog wishes to cross a road without being run over. he observes the angle of elevation of a lamp post on the other side of the road to be 27 degrees from the edge of the road and 15 degrees from a point 10m back from the

  2. English

    Choose the version of the sentence below that has correctly placed modifiers. A. Coughing and sputtering, Alan steered the old car to the side of the road. B. The old car was coughing and sputtering as Alan steered it to the side

  3. management

    young innovative or high tech firms often adopt the strategy of ignoring history of attempting to do something radically new.in what ways will this strategy help them?in what ways will this strategy hinder them/

  4. Math

    Hello! I know the answer to this word problem; however, I want to know HOW to solve it. Any help is much appreciated! Q: A store sells used and new video games. New video games cost more than used video games. All video games cost

  1. Physics

    A car is traveling on a level horizontal rode comes to a bridge during a storm and finds the bridge washed out. The driver must get to the other side, so he decides to try leaping it with his car. The side of the road the car is

  2. Algebra 1

    The Tigers won twice as many football games as they lost.They played 96 games. How many games did they win?

  3. math

    the hawks won 7 games lost 6 games and tied 2 games what percent of all the games did they win.

  4. Spanish

    What is the main difference between the Pan American Games and the Olympic Games? a. The Pan American games are held every 6 years, while the Olympic Games are held every 4 years. b. The Pan American Games are held in Buenos

You can view more similar questions or ask a new question.