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3 years ago

Implications of game theory

Business

1 answer:

MrRa [10]3 years ago

4 0

Answer:

Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .

Limitations of Game Theory :

The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.

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At some colleges and universities, economics professors receive higher salaries than professors in some other fields.

koban [17]

Answer:

Explanation:

At some colleges and universities, economics professors receive higher salaries than professors in some other fields.

A. Why might this be true?

Economists have a higher opportunity cost working in academia than professors in other fields because in certain fields that are different from academic,there is a lack of labor opportunity for professor and even when such arise ,they are difficult to get and another reason may be that economists who are good in some fields may employ themselves in other firms with higher wages because of their real life first hand experience, even when some colleges and universities wants to hire them, got to spend a greater amount of money than for professors in some other fields.

B. Some other colleges and universities have a policy of paying equal salaries to professors in all fields. At some of these schools, economics professors have lighter teaching loads than professors in some other fields. What role do the differences in teaching loads play

In order for university to employ working force which is hard to find, they put in place differences in teaching loads ,such differences in teaching load are intended to attract economics professors by providing nonmetary compensation

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3 years ago

Consider the market for pens. Suppose that increased medical concerns over lead pencils have led schools to steer away from penc

LiRa [457]

Answer: False

Explanation:
Being able to determine the effect on price would have to be circumstantial

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3 years ago

The federal reserve's goal in managing the money supply is to ensure that money retains its value.

sattari [20]

The answer is B: False The Federal's Reserve goal is t<span>o provide the nation with a safer, more flexible, and more stable monetary and financial </span>system<span>.</span>

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3 years ago

A company purchased $400 of office supplies on account during May. All the supplies were used in May, and the account was paid d

rusak2 [61]

Answer:

What would the impact of these transactions be during May on

(1) the balance of cash NO EFFECT, the account balance was not paid in May

(2) cash-basis net income: NO EFFECT, the account balance was not paid in May

(3) accrual-basis net income: DECREASE, even though the debt was not paid, the expense had already been recognized, therefore, the accrual-basis net income decreases

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2 years ago

Hex Industries reports the following information for May: Sales $ 990,000 Fixed cost of goods sold 118,000 Variable cost of good

Semmy [17]

The gross profit of Hex Industries for May under absorption costing is $604,000.

<h3>What is absorption costing?</h3>

Under absorption costing, the total or full costs of manufacturing or (variable and fixed) cost of goods sold are included when determining the gross profit.

<h3>Data and Calculations:</h3>

Sales $ 990,000

Variable cost of goods sold 268,000

Fixed cost of goods sold 118,000

Total cost of goods sold = $386,000

Gross profit = $604,000 ($990,000 - $386,000)

Fixed selling and administrative costs 118,000

Variable selling and administrative costs 143,000

Total period costs = $261,000 ($118,000 + $143,000)

Net income = $343,000 ($604,000 - $261,000)

Thus, the gross profit of Hex Industries for May under the absorption costing method is $604,000.

Learn more about the absorption costing method at brainly.com/question/14609187

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2 years ago