Good Y Use this figure of a feasible frontier and a set of an agent's indifference curves to answer the following three questions: A B C D E Good X shot 2024-... i Q Q Economists use the symbol ">" to mean "is preferred to". For example, if for Ash JK, it means that they prefer J to K. Which of the responses below correctly indicates this agent's preferences over the five labeled points on the feasible frontier, listed from most preferred to least preferred? OD C B E A OC B D A E OB A C D E OE D C B>A OA B C D E
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- In the movie Rebel Without a Cause, James Dean and Buzz Gunderson compete for thefavours of sixteen year old Judy. Buzz's gang members steal two cars. The group of teenagers gathers on aLos Angeles lookout, with a cliff that drops down to the Pacific Ocean. James and Buzz are to drive the stolencars toward the cliff. The first person to jump from his car is declared the chicken (which is bad). The lastperson to jump is the hero (which is good), capturing Judy's affection and the gang's respect. The driverlesscars continue over the cliff and plunge to the rocks at its base.Each driver can make two possible actions. Jump when he feels endangered (be a chicken) or jump AFTERthe other driver jumps (be a rooster). Assuming that both feel endangered at the same moment, the followingmatrix represents the payoffs for James and Buzz for each choice of strategy.BuzzChicken RoosterJames Chicken 3, 3 -10, 20Rooster 20, -10 -50, -50 PLEASE ANSWER THE BELOW QUESTION WITH REFERECE TO THE ABOVE…Consider a setting in which player 1 moves first by choosing among threeactions: a, b, and c. After observing the choice of player 1, player 2 choosesamong two actions: x and y. Consider the following three variants as towhat player 3 can do and what she knows when she moves:a. If player 1 chose a, then player 3 selects among two actions: high andlow. Player 3 knows player 2’s choice when she moves. Write down theextensive form of this setting. (You can ignore payoffs.)b. If player 1 chose a, then player 3 selects among two actions: high andlow. Player 3 does not know player 2’s choice when she moves. Writedown the extensive form of this setting. (You can ignore payoffs.)c. If player 1 chose either a or b, then player 3 selects among two actions: high and low. Player 3 observes the choice of player 2, but not that of player 1. Write down the extensive form of this setting.(You can ignore payoffs.)O let y= F(,k) = 2Č K be a pretustion funtion e ue told daivanve, to deniue, TRS this praquition fumition duplay mmu kinMartin a prequct in ? Hene about in k?
- goods, XandY per of good X is N$4 and the price of good Vis No10 Harrys unlity funchon is UCX,)==XY. Harry consumes 2 and he spend's Npbo month The price Find The values of gocal X and Y maximizes Harcys unly illustruate Hary's utlty maximizing.combinason clearly labelled on a graph. Suppose llustrate Harrys price & spod X increased to Ngb effects income and substitution ef the anel laballed graph.please only do: if you can teach explain each partc: what does it mean? can you show graphs: show WARP : If the consumer’s wealth is high enough that both bundles can buy with both prices then WARP violates If the consumer may not be spending all of her wealth, are her choices consistent withthe Weak Axiom of Revealed Preference (or is it impossible to determine)?: If the consumer’s wealth is high enough that both bundles are aordable atboth prices then WARP violates. why? Therefore, it is notpossible to knowExercise 6.1Suppose that two airlines decide to collude. Analyse the game between these two companies. Suppose that each of them can charge for tickets a high price or a low price. If one of them charges 100 euros, it gets few profits if the other also charges 100 euros and high profits if the other charges 200 euros. On the other hand, if the company charges 200 euros, it obtains very little profit if the other charges 100 euros and an average profit if the other also charges 200 euros. a) Represent the matrix of results of this game. b) What is the Nash equilibrium in this game? Explain your answer. c) Is there an outcome that would be better than the Nash equilibrium for the two airlines? How could it be achieved? Who would lose out if it were reached?
- fonsumer's demand xy for two different and the consumer's in come is $72. different Consumer's demand xy for chosen to maximize two the శ్రిందికి goods are x² lefility function The per respectively unit of , and the Consumer's in come is $7 x and y are $3and $4. 22,2 © telrite out the fagrangean for the Constrained maximization problem © Find the utility maximizing demands for both goods and he Larange multiplier, 2 o What is the change in consumer's ufility if income Changes from $72 to $75ayesha derives utility from travelling and outdoor dinning o weekends as given utility function U(t,d)=TD.the price of a day spent travelling is $160{Pt=160} and price of dining outdoor $200{Pd=200}.ayesha annual budget for this is $8000. find ayesha's utility maximizing choice of days travelling and dining outside. and alsoo find uutility level from consuming that bundles .show findings graphicallyConsider the market for a single network good and suppose thatconsumers differ in their valuation of both the stand-alone and thenetwork benefits (it can indeed be argued that it is more plausiblethat a user who has a higher value for the stand-alone component of atechnology also assigns more importance to the size of its network.) Tocapture this idea, write the consumer’s utility function for joining thenetwork as U(θ) = θ(a + νne), where a is the stand-alone benefit, ν > 0measures the network effect, neis the expected number of users joiningthe network, and is uniformly distributed on the unit interval.a. What happens if p > a + νne? (Hint: Identify all consumer who buythe good for at price p and a given expected network size ne).b. What is the consumer’s willingness to pay for the nth unit of thegood when ne units are expected to be sold? Is the demand downwardsloping? Does the demand increase with the expected network size?c. Express the fulfilled-expectations demand curve…
- o Suppose a u (X,, X)= x" x,** and facer 9 {,x, + P, Xa = M. joud 1 and utility funtion baiget coust ain t functinn for Consumer has a 180 Derive ber damend good Venify that beath functon 2. owe himo qenousConsider a town with a single street of 1 km long with 3,000 people spread uniformly along it. Two stores, 1 and 2, are located at the opposite ends of the street and sell the same product (store 1 is locatedattheleftend).Thecostofwalkingist1 =$6perkmtostore1andt2 =$9perkmtostore2for each consumer. The net utility of a consumer located at point x from buying a product at store 1 is U1(x) = 100 – p1 – t1x, where pi is a price of the product at store i = 1,2. The net utility from buying at store 2 is U2(x) = 100 – p2 – t2(1 – x). The average cost of the product for each store is c = 4. (a) Assume that all consumers buy product from the sellers. Find the demand functions Di(p1,p2) and the profit functions πi(p1,p2) for each store i = 1,2 as functions of prices p1,p2.(b) Find the equilibrium prices.learn.canterbury.ac.nz Clasarsom Nov 15-ICO EUC LEARN | AKO See the game below and answer the questions 8 to 11: Player-1 C Player-2 X, Y Y Player-1 9 14 8. Player-2 16 17 16 Nash Equilibrium in this game: Select one: O a. Playert: C; Player2: X O b. Playert: C; Player2: Y Oc. Playert: L; Player2: X Od. Playert: L; Player2: Y e. None