This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to the figure above. What is the profit-maximizing price for the monopolist? A) 3 B) 4 C) ... (Read 65 times)

haleyc112

  • Hero Member
  • *****
  • Posts: 600
on: Jun 29, 2018
Refer to the figure above. What is the profit-maximizing price for the monopolist?
 
  A) 3
  B) 4
  C) 5
  D) 6

Question 2

Why is the equilibrium in a trust game socially inefficient?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Bsand8

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

In a trust game, the first mover has to decide whether or not to trust the second mover. If he chooses to trust, the second mover can either cooperate or defect. If he cooperates, both the players will earn a higher payoff than they would have if the first player chose not to trust. If the second player defects, he will earn a higher payoff than the first player. Therefore, the second mover always has an incentive to defect. Given that the second mover is likely to defect, the first mover chooses not to trust. This results in a socially inefficient equilibrium because both the players can improve their payoffs by changing their respective strategies.


haleyc112

  • Member
  • Posts: 600
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Methods to Document Peripheral Pulses A. Stick Figure Peripheral Pulse Documentation B. Tabular Peri Methods to Document Peripheral Pulses A. Stick Figure Peripheral Pulse Documentation B. Tabular Peri
James Madison was a key figure at the Constitutional Convention of 1787 in Philadelphia. He not only James Madison was a key figure at the Constitutional Convention of 1787 in Philadelphia. He not only
Mobilize each metatarsal–phalangeal joint with figure-8s. Hold the tarsal just below the ... Mobilize each metatarsal–phalangeal joint with figure-8s. Hold the tarsal just below the ...
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ... If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ...
Video: Cardiac Cycle (Part 2 of 4)

For a complete list of videos, visit our video library