Assignment 2

                                                                  trustworthy 2                                                   |    Firm 1  |  |   hurt High|  Price Low| |  Price High|  400, 350|  -80, 800| |  Price Low|  800, -100|  200,200| a) Does all firm have a dominant st sitegy, and if so, what it is? Firm 1 has two dominant strategy. Entering high or first gear they get out have a better output consequently firm 2. Firm 2 will have a dominant strategy when they enter at a hapless price and firm 1 doesnt enter at all. When both firms enter at a low price, the will have equal outcomes. b) What is the Nash equilibrium of this game? The Nash Equilibrium is when Firm 1 enters when the price is high and firm 2 does non enter, and when firm 2 enters when the price is low and firm 1 does not enter. This would be the best strategy for both firms to maximize their products. If both firms entered when the price is low they would both have equal. interrogative #2 (50 pts) a) Calculate the unemployment rate when jab force is 154 cardinal and number of unemployed is 14.6 million. Unemployment rate equals unemployment divided by the labor force. 14.6/154=.094 Unemployment rate =9.48% b) Due to the slow-down economy, it is pass judgment that there will be 0.

7 million additional workers who will lose their jobs next month. What is the expected unemployment rate for next month? 14.6+.7=15.3 unemployed Unemployment rate equal 15.3/154=.0993 Unemployment rate = 9.93 Question #3 (50 pts) From the Bureau of Labor Statistics Web foliate (www.bls.gov/cpi), find the answers to the following questions. a) How is the CPI use? CPI is used in several different elbow rooms. The first way is as a economic indicator. It provides information about price changes in the nations economy to government, business, labor, and other private citizens. Another way is as a means of adjusting dollar values. It can be used to adjust income eligibility levels for government assistance.... If you want to get a full essay, order it on our website: Orderessay

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