ECON387 Lecture Notes - Lecture 25: Inexact Differential

By using backward induction, the perfect strategies and payoffs of players 1,2 and 3 are respectively: A. [(a, d, I), (b, C, G), (e, F, h)] → (-1, 6, 3) and [(A, d, I), (b, C, G), (e, F, H)] → (4,4,4). B. It is not possible to get such strategies C. [(A, d, I), (e, F, H), (b, C, G)] → (-1, 6, 3), [(a, D, i), (E, f, H), (b, C, G)] → (10, 8, 7) and [(a, d, I), (e, f, H), (b, c, G)] → (11,5,3). D. [(A, d, I), (e, F, H), (b, C, G)] → (-1, 6, 3)

3. Continuing the problem begun in question 1, the individual firm in the short run will earn profits of: (A) $0 (B) $26 (C) $32 (D) $48 (E) $52 (F) $68 (G) $72 (H) $84 (I) $90 (J) none of the above

15. In a competitive market without government intervention, which of the following would represent consumer surplus in the market for boxes of cereal? (a) A + B + C + D + E + G + H+ I + J. (b) A + B + G. (C) A + B + C + D + G + H. (d) C + D + H.