ECON 2035 Chapter : Chapter 7 PPT

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azuremammoth471

15 Mar 2019

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Resistence: float right where it was when you let go, assume the masses on the ends are fixed. What will happen to the spacecraft if it never regains power: nothing. The dark spots located on this image are sunspots. If you could observe that light bulb from. On the right you have two pieces of wire. Each wire is 1 cm long and each piece has been heated up to 3000 k, just like the one on the left. You measure the temperature on each and find out they are both exactly 10,000 k along the entire length of each wire. However, one wire is twice as long as the other. Which one is bigger: betelgeuse, rigel, they are the same size, not enough information, bellatrix and sirius b have the same temperature. Which star is more luminous: both have the same luminosity, sirius b, bellatrix, not enough information, spica is a blue star and pollux is an orange star.

Related Questions

(Please show as much work as possible)

1. You are bidding in a second-price auction for a painting that you value at $800. You estimate that other bidders are most likely to value the painting at between $200 and $600. Which of these is likely to be your best bid?

a. $1,000

b. $800

c. $600

d. $400

2. Which of the following is true about different ways of conducting a private-value auction?

a. A first-price auction is strategically equivalent to a second-price auction.

b. A first-price auction is strategically equivalent to an English auction.

c. A second-price auction is strategically equivalent to an English auction.

d. None of the above

3. Suppose that five bidders with values of $500, $400, $300, $200, and $100 attend an oral auction. Which of these is closest to the winning price?

a. $500

b. $400

c. $300

d. $200

4. In the above auction, if the bidders with the first- and third-highest values ($500 and

$300) collude, which of these is closest to the winning price?

a. $500

b. $400

c. $300

d. $200

5. If a seller is concerned about collusion among bidders, which of the following changes to the auction, should the seller make?

a. Hold frequent, small auctions instead of infrequent large auctions.

b. Conceal the amount of winning bids.

c. Publically announce the name of each auction's winner.

d. Hold a second-price instead of a first-price auction.

6. You're holding an auction to license a new technology that your company has developed. One of your assistants raises a concern that bidders' fear of the winner's curse may encourage them to shade their bids. How might you address this concern?

a. Release your analyst's positive scenario for the technology's future profitability.

b. Release your analyst's negative scenario for the technology's future profitability.

c. Use an oral auction.

d. All of the above

7. In a first-price auction, you bid ________ your value, and in a second-price auction you bid _________ your value.

a. at; above

b. below; above

c. below; at

d. below; below

8. You hold an auction among three bidders. You estimate that each bidder has a value of either $16 or $20 for the item, and you attach probabilities to each value of 50%. What is the expected price? If two of the three bidders collude, what is the price?

9. In Sweden, firms that fail to meet their debt obligations are immediately auctioned off to the highest bidder. (There is no reorganization through Chapter 11 bankruptcy.) The current managers are often high bidders for the company. Why?

10. When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, representatives of other museums that have no chance of winning are actively wooed by the auctioneer to attend anyway. Why?

11. The deities Mars and Venus often do battle to create the weather conditions on Earth. Venus prefers extreme temperatures (especially heat), while Mars prefers temperate conditions. The payoffs (expressed in Points of Wrath) are given below.

		Venus
		Warm	Chill
Mars	Warm	20 , 0	0 , 10
Chill	0 , 90	20 , 0

What is the unique mixed-strategy equilibrium of the above game?

(Let p be the probability of "Warm" for Mars, and q the probability of "Warm" for Venus.)

a) p=9/10, q=1/2

b) p=1/2, q=1/10

c) p=1/2, q=1/2

d) p=1/10, q=1/10

Player 2

		H	D
Player 1	H	0 , 0	4 , 1
D	1 , 4	2 , 2

12. The above game is the title of the hawk-dove game and used by evolutionary biologists to describe evolutionary processes. It is also used to model how a business should grow. In the above game, what is the Nash equilibrium in pure strategies and mixed strategies.?

Assume the cost of producing the goods is zero and that each consumer will purchase each good as long as the price is less than or equal to value. Consumer values are the entries in the table.

	Good 1	Good 2
Consumer A	$2,300	$1,700
Consumer B	$2,800	$1,200

13. Suppose the monopolist only sold the goods separately. What price will the monopolist charge for good 1 to maximize revenues for good 1?

a. $2,300

b. $2,800

c. $1,200

d. $1,700

14. What is the total profit to the monopolist from selling the goods separately?

a. $4,500

b. $6,300

c. $7,000

d. $6,000

15. What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?

a. Bundle the goods at $2,800; Profits = $5,600

b. Bundle the goods at $4,000; Profits = $8,000

c. Charge $2,800 for good 1 and charge $1,700 for good 2; Profits = $4,500

d. Charging the lowest price for each good individually is the best pricing strategy; Profits = $7,000

16. The prisoners' dilemma is an example of

a. a sequential game.

b. a simultaneous game.

c.a shirking game.

d. a dating game

17. Nash equilibrium

a. is where one player maximizes his payoff, and the other doesn't.

b. is where each player maximizes his own payoff given the action of the other player.

c.is where both players are maximizing their total payoff.

d. is a unique prediction of the likely outcome of a game.

viridianlocust640

In reading/listening to the news, you must have heard of the word QE 2. Like some folks note, QE 2 sounds like a luxury ocean liner. Aah! I wish it is, but to the contrary QE 2 is more like the Titanic.

Here are the facts: In November 2010, Mr. Bernanke announced that the Fed would implement the second round of quantitative easing, also known as QE 2 among the financial folks. In QE 2 the Fed would purchase $600 billion in long-term US Treasury Bonds, ostensibly to push down long-term interest rates. Of course, the Fed will not buy the $800 billion worth of US bonds in one purchase but it plans to stretch it over many months.

Then in July 2012, there are reports that the Fed is contemplating a QE 3 because the economies of European countries are slowing down fast. China admits that its economy is slowing down too because of the situation in Europe. So the Fed strongly hints that the Fed might act soon regarding a QE 3. On September 13, 2012, the Fed acted on QE 3. But then in July 2013, the Fed showed signs that it may slow down its purchase of US securities since the economy shows signs of continuing growth. Stock prices decrease upon hearing that the Fed may reduce its economic stimulus.

a) In QE 2, the Fed is the buyer, but who is the seller?

b) Why would the Fed want to push down long term interest rates?

c) Foreign currency traders are carefully watching the magnitude of the potential QE 3, i.e. how much billions of dollars would the Fed spend to purchase US Treasury Bonds. Why do these traders worry so much about QE 3?

c) What would be the ultimate consequence of QE 2 and QE 3?

d) Why would the stock market decrease when the Fed wants to decrease its purchase of US securities?

e) On February 1, 2014, Ms. Yellen, became the new Fed Chairman. At her February 11, 2014 testimony before Congress, Ms. Yellen pledged that she will continue to maintain Mr. Bernanke's policies by scaling back stimulus by measured steps and only a notable change in the economic outlook will prompt her to slow the pace of tapering.

Could you explain what Ms. Yellen is saying?

apricotfish650

1. Describe the four different types of competition in the private enterprise system. In which type of competition would each of the following businesses be likely to engage?

a. large drug store chain

b. small yoga studio

c. steel mill

d. large farm whose major crop is corn

e. Microsoft

2. Distinguish between the two types of planned economies. What factors do you think keep them from flourishing in today's economic environment?

3. Describe the four stages of the business cycle.

4. What are the effects of inflation on an economy? What are the effects of deflation? How does the Consumer Price Index work?

5. What does a nation's unemployment rate indicate? Describe what type of unemployment you think each of the following illustrates:

a. discharged armed forces veteran

b. bus driver who has been laid off due to cuts in his or her city's transit budget

c. worker who was injured on the job and must start a new career

d. lifeguard

e. dental hygienist who has quit one job and is looking for another

6. What is the difference between the budget deficit and the national debt? What are the benefits of paying down the national debt? What might be the negative effects?

brownreindeer796

ECON 2035 Chapter : Chapter 7 PPT

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