Scarcity is the mother of all economic problems. Elaborate

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Scarcity is the mother of all economic problems. Elaborate

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Consider the following normal form game: 1/2 ----L-----------R U----(1,1)-------(-2,6) D----(6,-2)------(-1,-1) What difference does it make if the game is played only once or is repeated an infinite number of times? Show that, with infinite repetitions, an average payoff pair (2, 2) can be obtained if the players alternate between two different strategy pairs. Show that the average payoffs (2, 2) are also enforceable if the players follow a simple trigger strategy.
Explain the nature of derivative markets, Derivative instruments that trade in this market and how derivative contracts are created
the market for pizza has the following demand and supply schedules: price: $8,$9,$10,$11,$12,$13 quantity demanded: 135,104,85,68,53,39 quantity supplied: 26,53,85,98,110,121 a.graph the demand and supply curves. what are the equilibrium price and quantity in this market? b.if the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? c.if the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
State the different ways in which the demand function can be presented:
Suppose that there are 250 identical individual consumers in the market for commodity X, each with a demand function given by dx = 6-Px and 50 identical producers of commodity X, each with a supply function given by sx =5Px. (8 Marks) a) Derive the market demand function and the market supply function for commodity X. b) Compute the market equilibrium price and equilibrium quantity mathematically. c) Tabulate the market demand schedule and the market supply schedule for commodity X. d) show whether surplus or shortage occurs at i) P = 2 ii) P = 5
Consider Hitoshi who lives for two periods. In period 1, he is young and in period 2 he is old. He enjoys consuming, ct, and experiences distutility from labour, nt, according to the following preference function: U(c_{1}, c_{2}, n_{1}, n_{2}) = 2c_{1} ^ 0.5 + 2beta * c_{2} ^ 0.5 - 0.5n_{1} ^ 2 - 0.5beta * n_{2} ^ 2 He earns income from supplying labour in period 1 of winy and in period 2 of w2n2. Any saving he earns in period I can earn a return of (1+r₁) that is paid out to him at the beginning of period 2. He also knows when he is young that he will receive an inheritence of a2 in period 2. a) Write out Hitoshi's one and two-period budget constraints. Combine these to form an intertemporal budget constraint. b) What is Hitoshi's choice problem? What variables does he have control over? What variables does he take as given? c) Solve Hitoshi's two-period optimization problem by taking FOCs and deriving his intertemporal and intra-temporal tradeoff conditions. Explain and show your math.
Auctions can be an important tool for selling goods and gathering information. Auctions are used in multiple venues including agriculture, eBay, and distressed asset sales. The seller does not have to worry about estimating demand and setting a price because the demanders will do that through the auction process. Write an essay examining the value of auctions in the economy by addressing the following items.  Explain the difference between oral auctions and second-price auctions, including how they work and their results.  Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid.  Explain how the number of bidders in a common value auction affects the outcome of the auction. Relate this to the effect on price in different market structures based on the number of producers.  Auctions lead to outcomes where buyers reveal their value for the products being auctioned. To successfully price discriminate, firms often rely on buyers revealing their value for products. Explain the conditions necessary for firms to be able to price discriminate.
Internal auditors normally report to the chief financial officer. (a) What do you think are the roles of the internal auditor? (b) Is there likely to be an adversarial or collegial relationship between the internal auditor and the chief financial officer? (c) Which type of relationship is likely to be most beneficial to the firm?