When an economy's production capacity is expanding:

In the above figure, the lowest price for which the firm will sell its second ton of wheat is

A) $25. B) $50. C) $75. D) $100.

Consider the same ultimatum game as in the previous questions but consider yet new preferences reflecting envy. In particular, now assume players get 1 util per dollar earned. That is all for the player who earns at least as much as the other. The player who earns strictly less than the other loses 1 util for each dollar difference. Which of the following is an offer that arises in a

subgame-perfect equilibrium with these preferences? a. 1. b. 2. c. 4. d. 5.