a. Perfectly competitive firms are profit maximiser. Use graph(s) and marginal analysis to explain how these firms determine their profit maximising output level. b. We all behave strategically when making decisions. Construct a game theory matrix and explain a strategic decision you made recently
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- a. Suggests why prices tend to stay rigid b. Illegal in the United States. c. Suggests that oligopolies sometimes choose not to profit maximize |d. Suggests that firms make decisions not in their best interests because they are not allowed to cooperate. Choices. Game theory Revenue maximization Collusion/cartel Kinked demand curveIn the following matrix for the profits of two pizza firms with the decision whether or not to offer “free delivery” what is the dominant outcome. Explain why. You deliver You don’t deliver Rival delivers Rival gets $3000 You get $3000 Rival gets $8000 You get $2000 Rival doesn’t deliver Rival gets $2000 You get $8000 Rival gets $6000 You get $6000Using relevant examples explain the three types of strategy
- 1. What are the 5 characteristics of perfect competition? 2. Define the followings? A. Monopoly B. Oligopoly C. Duopoly D. Perfect competition E. Knockoffs 3. What is a Resource Market? 4. What are the 4 types of resources in economics and define each? 5. What is an example of game theory in economics? 6. If you are the manager/owner of the company, what will you do to solve the negative effect of perfect competition?The Marketplace of Perceptions _Craig Lambert_.pdf Just as "perfect competition" may be more of an ideal than a description of an actual market, so to the idea of "economic man", who always acts with rational self-interest. Please follow the above link and respond to an article that discusses the rise of behavioral economics as a relatively new field of study in the last 30 years. Share two things: what do you recognize in your own behavior that is described as 'behavioral economics' in the article. identify an issue from world news that is better understood when seen through the lens of behavioral economics. "Economic Man makes logical, rational, self-interested decisions that weigh costs against benefits and maximize value and profit to himself. Economic Man is an intelligent, analytic, selfish creature who has perfect self-regulation in pursuit of his future goals and is unswayed by bodily states and feelings. And Economic Man is a marvelously convenient pawn for building…Explain what competition? What is the types of competitions? Discuss Perfect competition? Oligopoly – Monopoly? Student should search online for examples to support discussion
- How does a company like Walmart, determine its techniques to estimate and forecast its competitive advantage?HBO and Showtime are both evaluating a new TV show. They could produce either a romantic comedy or a crime drama. The below table represents profits for each outcome. a. Do you agree with following statements? Explain your answers. i. If HBO chooses to produce a romantic comedy, then Showtime’s best response is to produce a crime drama. ii. Showtime’s best response is to always produce a romantic comedy. iii. best response is to always produce a romantic comedy. b. What is the Nash equilibrium in this game?Economics Remove flag Anna, Bill, and Charles are competitors in a local market, and each is trying to decide whether it is worthwhile to advertise, If all of them advertise, each will earn a profit of $5000. If none of them advertise, each will earn a profit of $8000, If only one of them advertises, the one who advertises will earn a profit of $10,000 and the other two will each earn $2000. If two of them advertise, those two will each earn a profit of $6000 and the other one will earn $1000. If all three follow their dominant strategy, what will Anna do, and how much will she earn? Select one: a. Anna will advertise and earn $5000. b. Anna will advertise and earn $6000. C. Anna will not advertise and will earn $8000, d. Anna will advertise and earn $10,000.
- Scenario One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex Specialty Products as a brand manager, his new boss told him, “We don’t have a budget for new-product development. We just monitor our competitors’ new-product introductions and offer knockoffs of any that look like they will be successful.” Is this practice ethical?Explain the meaning of Nash equilibrium when firms are competing with respect to price. Why is the equilibrium stable? Why don’t hey raise prices to maximize joint profits?Explain and discuss game theory approach of modeling competition: a) What is the difference between the equilibrium in dominant strategies and Nash equilibrium? Show one game example in tabular (simple) form and the other in decision tree (extended) form to support your answer. b) In what circumstances players choose to follow maximin strategy? Support your answer with specific examples please.