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Economics assignment

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(1+rf) (3)1 12rl+2rh > rf (4)(a) Showthatarisk-averse person willalways invest someamount intheriskyasset.(b)What willbetheamountinvested intheriskyassetif1rl+1rh=rf?2 22. Consider thefollowingPrisoner?s dilemma gameplayed simultaneously:?NC(2)C(2)NC(1)-2,-2-10,-1C(1)-1,-10-5,-5Thefirstpayoffisthatofplayer 1andthesecondthatofplayer 2.Ifplayer 1movesfirstorweareinasequential gamenow.(a)What isnormal formofthegameinthesequentialversion?(b)What aretheNashEquilibriainthesequential version?(c)Drawtheextensive forminthesequential version.(d)What isthesubgame perfectNashEquilibriuminthesequential ver-sion?(e)Explain whyitisthesubgameperfectNashEquilibriuminthesequen-tialversion?3.Consider thecostfunction ofafirmforLRis:C(q)=q3?20q2+110q (5)andthedemand curveofthemarket is:QD=3,000?3P (6)5.Consider themarketdemand curvetobe:P=1000?Q (15)Thecostfunctionofafirmtobe:C(q)=10q+q2 (16)(a)What isthemonopolyoutput?(b)What istheoutputforperfectly discriminatingmonopolist?(b)What istheCournotoutputifthere are2firms?

 

Paper#57242 | Written in 18-Jul-2015

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