Details of this Paper

ECONOMICS Assignment

Description

solution


Question

(1+rf) (3);1 1;2rl+2rh > rf (4);(a) Showthatarisk-averse person willalways invest someamount intheriskyasset.;(b)What willbetheamountinvested intheriskyassetif1rl+1rh=rf?;2 2;2. Consider thefollowingPrisoner?s dilemma gameplayed simultaneously;?;NC(2);C(2);NC(1);-2,-2;-10,-1;C(1);-1,-10;-5,-5;Thefirstpayoffisthatofplayer 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#57359 | Written in 18-Jul-2015

Price : $27
SiteLock