Chapter 11: Answers to Questions and Problems
1.
E 1.5 a. Since E = EF = EM, P = MC = $75 = ( 3) $75 = $225 . 1+ E 1 1.5 2 ( 1.5) EF NEM b. P = $75 = (1.5) $75 = $112.50 . MC = $75 = 1 + EF 1 + NEM 1 + 2 ( 1.5)
EF c. P = 1 + EF 2.
NEM MC = 1 + NEM
20
Chapter 10: Answers to Questions and Problems
1. a. Player 1s dominant strategy is B. Player 2 does not have a dominant strategy. b. Player 1s secure strategy is B. Player 2s secure strategy is E. c. (B, E). 2. a.
Player 2 Strategy Player 1 A B A B
$500,
Chapter 8: Answers to Questions and Problems
1. a. b. c. d. e. f. g. h. 2. a. Set P = MC to get $80 = 8 + 4Q. Solve for Q to get Q = 18 units. b. $80. c. Revenues are R = ($80)(18) = $1440, costs are C = 40 + 8(18) + 2(18)2 = $832, so profits are $608. d.