Describe what it means to say a strategic game played with 2 players is in a Nash equilibrium. Then, describe the standard trust game, and identify the Nash equilibrium. Explain why this equilibrium is a Nash Equilibrium. Finally, explain why people actually playing this game might not play as the Nash Equilibrium predicts.

Supply of good A is perfectly inelastic. Suppose a tax is levied on buyers. Draw a graph to show the impacts on the market for good A. Your graph should indicate the CS, PS, tax revenue and DWL after tax.

On December 8, 1986, because of a severe business downturn, Ingram Manufacturing Company laid off 61 bargaining unit employees at plant no. 28. Then on June 12, 1987, the company subcontracted with Monroe Manufacturing Company for 49 wheels. Monroe Manufacturing Company was to fit, weld and machine the core of the wheel according to Ingram Manufacturing Company’s design. The local union representing workers at plant no. 28 has decided to file a grievance, alleging that the Company has violated the collective bargaining agreement by subcontracting work while employees are on layoff.

1. To settle this matter, the union and Ingram Manufacturing Company are deciding whether to hire a permanent arbitrator to handle this grievance and future grievances, or an ad hoc arbitrator. Evaluate the merits of each kind of arbitrator.

Critically access the theoretical propositions of the Solow neo-classical model of growth. How does endogenous growth model help to address some of the weaknesses of the Solow model? Illustrate the implications of technical advances and saving rates increase on growth according to both of these approaches.50 marks

Based on the current pandemic COVID-19, write a scenario forecast of the tourism sector a year from now (2021)?

Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can produce 25 tons of fish or 20 tons of rice per month.

a) Assuming both countries are using the same amount of capital and labor, which country has the absolute advantage in producing fish? In producing rice?

b) What is the opportunity cost of producing one ton of fish for Malaysia? For Thailand? Show work.

c) What is the opportunity cost of producing one ton of rice for Malaysia? For Thailand? Show work.

d) Which country has the comparative advantage in producing fish? In producing rice?

What do you think the long-term ramifications will be for other countries without the US contributions to WHO

Assume that each unit of labor costs $10 (the wage for a breakfast shift) and that fixed cost is $5.  Also assume that there are no ingredient costs or electricity costs (just to make it easier).

Derive the cost curves:   MC  AVC  and ATC.     Then sketch them (its best to draw and then submit a pdf or jpeg)

Hint: You don’t have enough detail to do MC for each unit of output, so you need to find it for the increments shown in the table (for example MC for the first 10 breakfasts is $10 or $1 per breakfast in that range so put $1 as MC per unit there) So you are finding MC per unit for units in each range based on the info given.  

Fill in columns for MC  AVC and ATC  and graph those cost curves.

Assume that country X subsidizes its exports and country Y imposes a countervailing tariff that offset the subsidy. Explain why the relative prices in country Y would be unchanged. Discuss the welfare effects in the two countries. What would be the effect if country Y retaliates with an export subsidy but without countervailing tariffs on the product?