Suppose the demand for wheat increased dramatically between 1950 and 2000 but the equilibrium quantity increased only slightly.
1 answer:
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Answer:
a) attached below.
b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium
c) will make the athletes feel better because the value their payoff will increase
Explanation:
<u>a) 2 * 2 payoff matrix describing the decision faced by the athletes </u>
attached below
when both players take the drug the payoff for each player = $5000 - x
when neither player takes the drug the payoff for each player = $5000
When only one player takes the drug his payoff = $10000 - x
<u>b) If we consider the value of $x to be involved in the Nash equilibrium then </u>
; $5000 - $x > 0 becomes the best response
hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium
c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )
will make the athletes feel better because the value their payoff will increase
Answer:
Cost for Nuts = $80,000 2/5 = $32,000
Cost for bolts = $80,000 3/5 = $48,000
Explanation:
Provided joint cost = $80,000
Total quantity of nuts and bolts at separation
Nuts = 5,000 pounds
Bolts = 10,000 pounds
Weights of cost will be based on value of goods.
Nuts = 5,000 $20 = $100,000
Bolts = 10,000 $15 = $150,000
Thus, weights will be 10:15 = 2:3
Cost for Nuts = $80,000 2/5 = $32,000
Cost for bolts = $80,000 3/5 = $48,000