Q: 10 students are going on a trip on which they will live close together. Where...

Q: 10 students are going on a trip on which they will live close together. Where they are going, there is a disease which spreads easily among people who live close together. There is a vaccination against the disease. The vaccination costs 3 for each student who gets it. The students decide, individually and simultaneously, whether or not to get a vaccine. There are two types of students: the pro-vaccine type and the anti-vaccine type. For a pro-vaccine type, if she gets vaccinated, she will not get the disease and the trip brings her value 10. For a anti-vaccine type, if she gets vaccinated, she will not get the disease and the trip brings her value 9. If a student does not get vaccinated then the trip brings her value m, where m is the number of students who get vaccinated. A student’s payoff is the value of the trip minus the vaccination cost. Among the 10 students, 5 of them are pro-vaccine and 5 are anti-vaccine.

(a) Is there a NE in which some anti-vaccine types get vaccinated and some pro-vaccine types do not get vaccinated? Explain your answer. (5%)

(b) Is there a NE in which 5 students get vaccinated? Explain your answer. (5%)

(c) Is there a NE in which 7 students get vaccinated? Explain your answer. (5%)

(d) Find all the NE in pure strategies. Explain your answer. (10 %)

{NE is Nash Equilibrium}

Expert Solution

Rahul Sunny answered 6 months ago

5. Six students are going on a road trip in which they will live closely together....

5. Six students are going on a road trip in which they will live closely together. Where they are going, there is a disease which spreads easily among people who live close together. The value of the trip to a student who does not get the disease is 6. The value of the trip to a student who gets the disease is 0. There is a vaccination against the disease. The vaccination costs different amounts for different students (they have...

. The first job offer is close to your parents’ house (they live in Winnetka which...

. The first job offer is close to your parents’ house (they live in Winnetka which is 16 miles north of downtown Chicago). Your parents have offered to let you live at home for a year so you won’t have to incur expenses for housing, food, or cable and internet. This job pays $45,000 per year. The second job is far from your parents’ house, but close to downtown Chicago. However, you will have to rent a studio apartment with...

The Skipper and Mary Ann live together on an island. They each have 10 labor hours...

The Skipper and Mary Ann live together on an island. They each have 10 labor hours each day to divide between making pies and catching fish. The amount of each product (measured in units) they can produce in 1 hour when that hour is devoted entirely to the single good is given in the following table: Production in 1 hour Skipper Mary Ann Pies 1 3 Fish 5 2 Step #1. Suppose the Skipper and Mary Ann decide to live...

Suppose the demand for donuts in Bethlehem is; P = 10 – Q where Q =...

Suppose the demand for donuts in Bethlehem is; P = 10 – Q where Q = qA + qB There are only two firms that sell donuts in Bethlehem, Firm A and Firm B. Each firm has the same cost function; TC = 2 + q a. Determine the Cournot equilibrium. b. Explain why the intersection of the best-response functions is the Cournot equilibrium.

A large university provides housing for 10 percent of its graduate students to live on campus....

A large university provides housing for 10 percent of its graduate students to live on campus. The university’s housing office thinks that the proportion of graduate students looking for housing on campus may be more than 0.10. The housing office decides to survey a random sample of graduate students, and 62 of 481 say that they are looking for housing on campus. At a=.05, is there evidence to support the housing office’s suspicion?

Dana's monthly demand curve for the gym is: p=10-q where p is the price and q...

Dana's monthly demand curve for the gym is: p=10-q where p is the price and q is the quantity. The market price for a single visit is 3 RMB. Monthly membership (you can enter the gym for free if you have the membership) cost 22 RMB. Should Dana pay for the monthly membership? Prove.

a.The production function of Firm X is given as follow: q=10(K0.5)(L0.5) where q, K and L...

a.The production function of Firm X is given as follow: q=10(K0.5)(L0.5) where q, K and L denote firm's output, capital and labor respectively. The marginal product of labor (MPL ) and capital (MPK ) are expressed as follow: MPL =5(K0.5)(L-0.5) MPK =5(K-0.5)(L0.5) i. What are the capital elasticity of output and labor elasticity of output respectively? ii. If the wage of labor (w) and rental of capital (r) are $100 and $400 respectively, what is the minimum cost required to produce...

Pretend you live in a society where everyone earns the same income no matter which job...

Pretend you live in a society where everyone earns the same income no matter which job is performed. Do you think it would be difficult to persuade people to become surgeons or to choose other important careers? Please explain your answer and use one reference from the textbook indicating the page number where you found the reference. Social Problems? http://open.lib.umn.edu/socialproblems/front-matter/publisher-information/?

(10 pts) A firm has the following short run total costs, where Q is output and...

(10 pts) A firm has the following short run total costs, where Q is output and TC is total cost: Q TC 0 $ 100 1 110 2 130 3 160 4 200 5 250 6 310 7 380 8 460 9 550 10 650 11 760 What is total fixed cost equal to? $100 What is average total cost at Q = 4? $50 What is average variable cost at Q = 7? $40 What is marginal cost at...

Suppose a firm is a price-taker and the market price is p = 5. The firm produces q=10 units and its costs at that quantity are MC(q=10) = 6 and ATC(q=10) = 4. Which statement is correct?

Need as much details as possible. Microeconomics.Suppose a firm is a price-taker and the market price is p = 5. The firm produces q=10 units and its costs at that quantity are MC(q=10) = 6 and ATC(q=10) = 4. Which statement is correct?a. The firm’s profits are negative at q = 10.b. The firm is maximizing profits at q = 10.c. The optimal quantity to produce is less than 10.d. At q = 10, ATC is decreasing.

Question