3 Version: 191TWAG!!1. Ten farmers, in a society with 100 people, would collectively gain $100,000 from a farm subsidy. All 100 people would pay the $300,000 cost of the subsidy program. Are the farmers willing to lobby the government in support of the subsidy?
2. Which of the following is an example of statistical discrimination?
3. A possible source of why cartels break down is the growth potential of the industry. Although industries with a lot of potential are more willing to invest in the time to form a collusive agreement, such growth potential also deters them from making this investment. Why would that be?
4. Table: Jim, Dan Payoff Table Dan Ice Cream Cake Jim Ice Cream (5, 5)(1, 1) Cake (2, 2)(6, 6) Refer to the table. Jim and Dan are trying to decide on what to have for dessert tonight. What are the Nash Equilibrium strategies for this game? A) Jim and Dan both eat ice cream. B) Jim and Dan both eat ice cream OR Jim and Dan both eat cake. C) Jim and Dan both eat cake. D) Jim eats cake and Dan eats ice cream OR Jim eats ice cream and Dan eats cake.