game The first number in the table below represents the payoff for party 1 and

Game the first number in the table below represents

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game: (The first number in the table below represents the payoff for party 1 and the second for party 2.) Party 2 Positive NegativeParty 1 Positive 10, 10 10, 20 Negative20, 10 41) Which of the following statements about this game is correct? 0, 0 a.Positive advertising is a dominant strategy for both parties b.Negative advertising is a dominant strategy for both parties c.Neither party has a dominant strategy d.Positive advertising is a dominant strategy for Party 2 42) Party 1’s Maxmin strategy is _____ advertising and Party 2’s maxmin strategy is _____ advertising. 43) Which of the following is a Nash equilibrium of this game?
Use the following information to answer the next FOUR (4) questions The supply and demand for vaccines in Econland are given by: Demand: P = 100 – 2Q Supply: P = 10 + Q P is in dollars and Q is in hundreds of people vaccinated. Vaccines create a positive externality for the society of Econland through herd immunity. The positive externality is measured as Q per hundred people vaccinated. 44) What is the equilibrium quantity in this market with no government involvement? 45) What is the marginal social benefit of vaccines to all parties in Econland? a.MSB = 100 – 2Q b.MSB = Q c.MSB = 100 – Q d.MSB = 90 - Q 46) What is the socially optimal quantity of vaccinations? 47) To achieve the socially optimal quantity the government could implement a ____ of ____ per hundred vaccines.
48) The government imposes a $5 tax on widgets. If demand is inelastic compared to supply then the price of widgets consumers have to pay will increase by Use the following information to answer the next TWO (2) questions. 49) Consider the market for a public good. In this market there are only two buyers, Jane and Ivan. Suppose that Jane’s demand for the public good can be expressed as P = 10 – Q while Ivan’s demand for the public good can be expressed as P=20–2Q. Furthermore, suppose the marginal cost of providing this public good is constant at $6 per unit of the good provided. The efficient amount of public good produced in this market is: a.4 units b.6 units c.8 units d.12 units 50) At the allocatively efficient amount of the public good, Ivan will pay ______ per unit and Jane will pay ___ per unit of public good.

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