If the game continues for infinity, then the new Nash Equilibrium is
a. for one firm to charge a HP forever
b. for your firm charge a LP when the other firm does.
c. for each firm to charge HP so long as the rival does, otherwise charge a LP.
d. for each firm to charge LP until the rival does, and then to charge a HP forever.
c
Economics
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Refer to the scenario above. After a year, the interest payments by the bank will be ________
A) $10 B) $300 C) $3,000 D) $3,300
Economics
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y ? L and this person has no non-labor income. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply when the person wins a lottery prize of $100 per day
What will be an ideal response?
Economics