Answer:
The only dominant strategy in this game is for <u>Crystal</u> to choose <u>Right</u>. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses <u>Right</u> and Crystal chooses <u>Right</u>.
Explanation:
Given:
Crystal
Left Right
Brian Left 6, 3 6, 4
Right 3, 3 7, 4
A dominant strategy refers to a strategy that makes a player being better off regardless of the choice his opponent in a game.
It can be seen from the payoff matrix above that when Brian plays Left, Crystal chooses Right because 4 > 3. Also, when Brian plays Right, Crystal chooses Right because 4 > 3. The indication of this is that Crystal will always choose Right no matter what Brian chooses. This means that the dominant strategy for Crystal is Right.
On the other hand, when Crystal Chooses Left, Brian will also choose Left because 6 > 3. And when Crystal chooses Right, Brian will also play Right because 7 > 6. This is an indication that Brian does not have any specific strategy that makes him better off. Therefore, Brian does not have a dominant strategy.
Based on the analysis above, we have:
The only dominant strategy in this game is for <u>Crystal</u> to choose <u>Right</u>. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses <u>Right</u> and Crystal chooses <u>Right</u>.
Answer:
Decreases by $2 million; Money supply decreases by $12.5 million
Explanation:
Given that,
Required reserve ratio = 16 percent
Government bonds sold by Fed = $2 million
Therefore, the economy's reserve decreases by:
= Change in money supply × Required reserve ratio
= $12.5 million × 0.16
= $2 million.
Money multiplier = 1 ÷ Required reserve ratio
= 1 ÷ 0.16
= 6.25
Money supply decreases by:
= Money multiplier × Decline in reserves
= 6.25 × $2 million
= $12.5 million
Answer:
The answer is: A) by purchasing an equal number of shares of each stock in the S&P 500 in proportion to the price weight of the stock in the S&P 500
Explanation:
The Vanguard 500 Index Fund Investor Shares (VFINX) attempts to provide investors with return rates corresponding to the S&P 500 Index performance. To do so, the VFINX invests in stocks included in the S&P 500 in the same proportion as their weight in the index. Because of this, the VFINX has an extremely high degree of positive correlation with the S&P 500.
Answer:
$3.25
Explanation:
The new price for cigarettes will be the intersection point between the demand curves and the new supply curve.
Assuming S1 is the old supply curve without taxes and the new supply curve is S2 with taxes. The new price is the intersection of S2 and the demand curve, which is at $3.25.
<u>Determination of type of costs:</u>
There are two main types of costs, which are Direct Costs and Indirect Costs. Direct costs are those costs which are directly traceable to the product, for example; direct material, direct labor etc. On the other had indirect costs are common costs incurred which are not directly traceable to the product, for example: Indirect material, indirect labor etc.
Oil to keep the factory machinery lubricated is an example of indirect material which is an <u>Indirect Cost. </u>
