« previous next »

Author Question: If the businesses last forever, then the Nash Equilibrium is a. for one firm to charge a HP forever ... (Read 49 times)

Charlie

  • Hero Member
  • *****
  • Posts: 640
on: Jul 1, 2018
If the businesses last forever, then the Nash Equilibrium is
 a. for one firm to charge a HP forever
  b. for your firm charge a LP when the other firm does
  c. for each firm to charge HP until the rival does, and then to charge a LP forever.
  d. for each firm to charge LP until the rival does, and then to charge a HP forever.

Question 2

A risk-neutral individual is offered a gamble that promises a gain of 1000 with probability 0.25 and a loss of 300 with probability 0.75 . Given this situation, he or she will:
 a. definitely take the gamble.
 b. definitely not take the gamble.
 c. definitely take the gamble if his or her income is high enough.
 d. take an action that cannot be determined given the information available.


Anton

  • Sr. Member
  • ****
  • Posts: 302
Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

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.

Rebound Tenderness, Apply Firm Pressure to the Abdomen Rebound Tenderness, Apply Firm Pressure to the Abdomen
John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
Kinesthesis and Equilibrium with skating Kinesthesis and Equilibrium with skating
An 80-g aluminum calorimeter contains 380 g of water at an equilibrium temperature of A piece ... An 80-g aluminum calorimeter contains 380 g of water at an equilibrium temperature of A piece ...
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library