[Discussion] - 6

[Discussion] - 6 - A: 10 years in jail B: Goes free. Snitch...

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Recap of Last Week t Look up: Example 6.11 in the textbook. t Look up: Chapter 7, #10. ook up: Handouts Section of ourseweb t Look up: Handouts Section of Courseweb t Question on Calculating NPV and IRR for a Replacement
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Cases Case Result Purely Competitive Firm cannot adjust prices. Price Taker. Monopoly Firm controls prices Oligopoly Firms aren’t price takers, have to make wise guesses.
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Oligopoly [Prisoner’s Dilemma] Stay Silent Snitch Stay Silent A : 1 Year of Jail B: 1 Year of Jail
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Unformatted text preview: A: 10 years in jail B: Goes free. Snitch A: Goes free B: 10 years in jail. A: 10 years in jail. B: 10 years in jail. Reference: Cartoon Introduction to Economics Oligopoly [Prisoner’s Dilemma] Invest Less Invest More Invest Less A: Win B:Win A: Lose B: Win Invest More A:Win B: Lose A: Lose B: Lose Reference: Cartoon Introduction to Economics Question 1 +$10 20 50% 0%-$20 50% Face Value Question 2 Face Value Question 3/4 Coupon Payments...
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This note was uploaded on 12/05/2011 for the course ENGINEERIN 111 taught by Professor Melihabulu-taciroglu during the Fall '11 term at UCLA.

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[Discussion] - 6 - A: 10 years in jail B: Goes free. Snitch...

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