Problems: Chapter 15
Please review carefully and no plagiarism. Complete the following Problems 15‐1, 15‐3, 15‐4, and 15‐6 in Chapter 15 in Managerial Economics: A Problem Solving Approach. Ensure that you clearly show how you solved these problems and provide a 250‐500 word cumulative summary explaining all problems.
APA style is not required, but solid academic writing is expected.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
Rubic_Print_
Format
| Course Code | Class Code | Assignment Title | Total Points | |||||||
| ECN-601 | ECN-601-O501 | Problems: Chapter 15 | 75.0 | |||||||
| Criteria | Percentage | 1: Unsatisfactory (0.00%) | 2: Less Than Satisfactory (74.00%) | 3: Satisfactory (79.00%) | 4: Good (87.00%) | 5: Excellent (100.00%) | Comments | Points Earned | ||
| Content | 80.0% | |||||||||
| Chapter 15 Problem 15-1 | 20.0% | Chapter 15 Problem 15-1 is not included. | Chapter 15 Problem 15-1 is incomplete or incorrect. | Chapter 15 Problem 15-1 does not include supporting detail. | Chapter 15 Problem 15-1 is complete and correct and includes supporting detail. | Chapter 15 Problem 15-1 is extremely thorough with substantial supporting detail. | ||||
| Chapter 15 Problem 15-3 | Chapter 15 Problem 15-3 is not included. | Chapter 15 Problem 15-3 is incomplete or incorrect. | Chapter 15 Problem 15-3 does not include supporting detail. | Chapter 15 Problem 15-3 is complete and correct and includes supporting detail. | Chapter 15 Problem 15-3 is extremely thorough with substantial supporting detail. | |||||
| Chapter 15 Problem 15-4 | Chapter 15 Problem 15-4 is not included. | Chapter 15 Problem 15-4 is incomplete or incorrect. | Chapter 15 Problem 15-4 does not include supporting detail. | Chapter 15 Problem 15-4 is complete and correct and includes supporting detail. | Chapter 15 Problem 15-4 is extremely thorough with substantial supporting detail. | |||||
| Chapter 15 Problem 15-6 | Chapter 15 Problem 15-6 is not included. | Chapter 15 Problem 15-6 is incomplete or incorrect. | Chapter 15 Problem 15-6 does not include supporting detail. | Chapter 15 Problem 15-6 is complete and correct and includes supporting detail. | Chapter 15 Problem 15-6 is extremely thorough with substantial supporting detail. | |||||
| Mechanics of Writing (includes spelling, punctuation, grammar, language use) | 10.0% | Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice or sentence construction is used. | Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register) or word choice are present. Sentence structure is correct but not varied. | Some mechanical errors or typos are present, but they are not overly distracting to the reader. Correct and varied sentence structure and audience-appropriate language are employed. | Prose is largely free of mechanical errors, although a few may be present. The writer uses a variety of effective sentence structures and figures of speech. | Writer is clearly in command of standard, written, academic English. | ||||
| Paper Format (use of appropriate style for the major and assignment) | 5.0% | Template is not used appropriately or documentation format is rarely followed correctly. | Appropriate template is used, but some elements are missing or mistaken. A lack of control with formatting is apparent. | Appropriate template is used. Formatting is correct, although some minor errors may be present. | Appropriate template is fully used. There are virtually no errors in formatting style. | All format elements are correct. | ||||
| Documentation of Sources (citations, footnotes, references, bibliography, etc., as appropriate to assignment and style) | Sources are not documented. | Documentation of sources is inconsistent or incorrect, as appropriate to assignment and style, with numerous formatting errors. | Sources are documented, as appropriate to assignment and style, although some formatting errors may be present. | Sources are documented, as appropriate to assignment and style, and format is mostly correct. | Sources are completely and correctly documented, as appropriate to assignment and style, and format is free of error. | |||||
| Total Weightage | 100% |
15‐1
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote.
15‐3
Microsoft and a smaller rival often have to select from one of two competing technologies. The rivals always prefers to select the same technology as Microsoft (because compatibility is important), while Microsoft always wants to select a different technology from its rival. Describe the equilibrium of this game.
15‐4
The below figure represents the potential outcomes of your first salary negotiation after graduation. Assuming this is a sequential move game with the employer moving first, indicate the most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?
15-6
In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm (Figure15.1). Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player). What is the equilibrium of this game? Discuss if the entrant is better off with or without the ability to withdraw.
Employer
low salary offer
employee walks
employer get 0
employee gets 0
employee accepts
employer gets 100
employee gets 75
high salary offer
employee walks
employer gets 0
employee get 0
employee accepts
employee gets 100
employer gets 75