game theory

6. You are the bargaining coordinator for Sun Car Manufacturers. At present you are renegotiating the labor contract with the union representative. You are bargaining over an expected 20 percent increase in earnings over the next three-year contract period. You are trying to decide whether to offer one-third, one-half, or all of the increase in earnings to the union. The union rules are such that all contracts must be voted on. The additional earnings are contingent on getting started on the new contract next week. If an agreement isn't reached on the first round of negotiations the firm will go out of business. The union representative tells you that if you do not give the union all ... click for more

nash

4. You operate in a duopoly in which you and a rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of $3. If you charge different prices, the one charging the higher price loses $5 and the one charging the lower price makes $5. a. Find the Nash equilibrium for a one-shot version of this game. b. Now suppose the game is infinitely repeated. If the interest rate is 10 percent, can you do better than you could in a one-shot play of the game? Explain. c. Explain how "history" affects the ability of firms in this game to achieve an outcome supe... click for more

Finding Total Ecnomic Profit

Here is the Scenerio- Labor is only variable input. Output is 4000 unit Marginal Product of labor is 10 Average Product of labor is 50 Price of labor is $150 Marginal product of capital is 40 Average product of capital is 60 Price of capital is $240 Total Fixed Cost is $16000 Output MC AVC AFC ATC Total Economic Profit 4000 __ __ __ __ _____ How I find those values....plz show me the Work too I would really appreciate that. I got It partially I guess

Perfect Competitor, Short run, long run

Output= 2000 unit Total Fixed Cost= $4000 Price of Labor= $80 price of Capital= $320 Marginal Product of Labor= 20 Marginal Product of Capital= 80 Price of output= $8 Long Run Marginal Cost= $8 Average Product of labor= 40 What Advice should be given for Short run and Long run and why? If output rises $10 dollar more what gonna happen in Short run and Long run ?

Finding Short Run, Long Run movement

Suppose Labor is a Variable Input. Capital and Land are the inputs that requires the longest time period before they can be adjusted. Explain the movement of the resources in both SHORT RUN and LONG RUN Labor Capital Land