Questions from Microeconomics

Q: Airlines sometimes find themselves in price wars. Consider the following game

Airlines sometimes find themselves in price wars. Consider the following game: Delta and United are the only two airlines flying the route from Houston to Omaha. Each firm has two strategies: charge a...

Q: For many years, airlines would post proposed changes in ticket prices

For many years, airlines would post proposed changes in ticket prices on computer reservation systems several days before the new ticket prices went into effect. Eventually, the federal government too...

Q: Draw a graph of a perfectly inelastic demand curve. Think of

Draw a graph of a perfectly inelastic demand curve. Think of a product that would have a perfectly inelastic demand curve. Explain why demand for this product would be perfectly inelastic.

Q: Finding dominant strategies is often a very effective way of analyzing a

Finding dominant strategies is often a very effective way of analyzing a game. Consider the following game: Microsoft and Apple are the two firms in the market for operating systems. Each firm has two...

Q: Suppose there are four large manufacturers of toilet tissue. The largest

Suppose there are four large manufacturers of toilet tissue. The largest of these manufacturers announces that it will raise its prices by 15 percent due to higher paper costs. Within three days, the...

Q: An article in the Economist on evaluating health outcomes is subtitled “

An article in the Economist on evaluating health outcomes is subtitled “To Improve Health Care, Governments Need to Use the Right Data.” Among the data not currently being collected in most countries,...

Q: Anheuser-Busch InBev is the Belgian company that produces Budweiser,

Anheuser-Busch InBev is the Belgian company that produces Budweiser, which has a large market share in the U.S. beer industry. According to an article in the New York Times, “Anheuser-Busch (InBev) si...

Q: What is a sequential game?

What is a sequential game?

Q: How are decision trees used to analyze sequential games?

How are decision trees used to analyze sequential games?

Q: Adam operates a pin factory. Suppose Adam faces the situation shown

Adam operates a pin factory. Suppose Adam faces the situation shown in the following table and the cost of renting a machine is $550 per week. a. Fill in the blank cells in the table and determine the...