平狄克

Matching Pennies Player A might flip coin playing heads with 189。 probability and tails with 189。 probability If both players follow this strategy, there is a Nash equilibrium – both players will

Dollars per unit of reduction Marginal Social Cost Marginal Abatement Cost Observations • MAC = MSC @ .0275 • .0275 is slightly below actual emission level • Economic efficiency improved 169。 2020

Markets The Supply of Labor If the ine effect exceeds the substitution effect, the supply curve is backward bending By using utility and budget line graph, we can show how the supply curve can be

e Electric Motor Factory (choosing to build a $10 million factory) 8,000 motors/ month for 20 yrs  Cost = $ each  Price = $ Profit = $10/motor or $80,000/month  Factory life is 20 years with a

020 Pearson Education, Inc. Chapter 10 46 Measuring Monopoly Power  Our firm would have more monopoly power, of course, if it could get rid of the other firms But the firm‟s monopoly power might

s, or of two inputs between two production functions 169。 2020 Pearson Education, Inc. Chapter 16 37 The Contract Curve 0J James’ Clothing Karen’s Clothing 0K Karen’s Food James’ Food E F G Contract

prices at different points in time Initial release of a product, the demand is inelastic  Hard back vs. paperback book  New release movie  Technology 169。 2020 Pearson Education, Inc. Chapter 11

r 17 36 Market Signaling Guarantees and Warranties Signaling to identify high quality and dependability Effective decision tool because the cost of warranties to lowquality producers is too high

profit is twice as large as Firm 2’s Going first allows Firm 1 to produce a large quantity. Firm 2 must take that into account and produce less unless it wants to reduce profits for everyone. 169。