Economics 335
Game Theory thlcm Set
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1. Consider the following two-person Sam-:2:
(a) Player 1 does not have a. dominant strategy in this game. Expiain why: M z 5 H (We
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{b} Play
1
Economics 335: Final Exam
Spring 2003
Name: _
Answer all questions. If you get stuck with the math, explain in words what you are
trying to do and why.
1. (2 points) Using the concept of returns to scale, carefully explain how the merger of
two agribusi
Economics 335 Final Exam
Spring 2002
(25 points)
NAME: _
1. (2 points) Suppose that a firm in a perfectly competitive market has the following production
2
function: f ( x1 , x2 ) = 3 x1 + x 2 0.2 x12 0.1x2 , where x1 and x 2 are input quantities. The
pri
Economics 335
Final Exam
(25 points)
Name: _
1. (3 points) Economists often collect data to measure the difference between price and marginal
cost in a market to determine whether market power exists. Explain how this technique can detect
a non-competitiv
Economics 335
Answers-Duopoly/Duopsony Problem Set
#1
Basic idea of this question is the same as Duopoly model, except in this case, they are
buyers instead of sellers.
a)
The description of this Cournot Duopsony Game is as following:
-Players: Beef packi
Economics 335
Price Discrimination
Answer Key
#1
(a) (page 1) You have to show with the aid of graphs that the monopolists total demand
is given by
0 if P 200
Q = Q1 + Q2 = 200 P if 100 P 200
250 1.5 P if 0 P 200
The following figures show the demand for
Economics 335
Midterm 2 (15 points)
NAME: _
1. (1 point) Consider the following variation of the turkey price game that was discussed in class:
The players are Fairway and HyVee. Each must simultaneous announce a low or a high price for
turkeys one week p
Midterm 2
(20 points)
Name: _
1. Suppose that you work for the Iowa Attorney General. You have been asked to calculate the
dead weight loss from a hog packing monopsony in a region of the state. An economics
consulting firm estimates that price of hogs in
Economics 335
Answers-Duopolnyuopsony Problem Set
#1 Basic idea of this question is the same as Duopoly model, except in this case, they are
buyers instead of sellers.
a) The description of this Cournot Duopsony Game is as following:
-Players: Beef packin
Economics 335
Midterm # 1
(10 points)
NAME:
1. (2 points) A cost function gives the minimum cost of producing a paicular output quantity.
The cost function is an increasing function of output and is convex which means that costs
increase at an increasi
Economics 335
Midterm # 1
Student ID:
True or False (1/4 point each)
Please circle T if the statement is true and F if it is false.
1. T F Quasirents are the returns over and above the minimum return required to keep
an asset employed in its current us
Economics 335
l r Te Theqry Problem Set
NaIne- _ , i '7 _
J
1. Consider the following two-person game:
M
(a) Pyer '1 does not have a dominant shaggy in this ga. 3. Explain Why:
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,\
Ki \5 K '
. 7 Y _ k a
b) éyer gills
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Economics 335
Duopoly/Duopsony Problem Set
\7 \ a
Name:" - _ n
In...
1. Suppose that there are two beef packing rms operating in a market. There is no further
threat of entry. The price for the rms outputl boxed beefI is $12.5
Economics 335
Second Midterm
(20 points)
NAME: _
1. (3 points) Suppose that a monopolist faces the following downward sloping ordinary demand
curve, P(Q ) = 100 Q , and has a cost function given by C (Q) = Q 2 . How much output should
it produce to maximi