Two people are engaged in a joint project. If each person i puts in the effort xi, a nonnegative number equal to at most 1, which costs her c(xi), the outcome of the project is worth f(x1,x2). The worth of the project is split equally between the two people, regardless of their effort levels. Formulate this situation as a strategic game. Find the Nash equilibria of the game when (a) f(x1,x2) = 3x1x2 and c(xi) = x2i for i = 1,2, and (b) f(x1,x2) = 4x1x2 and c(xi) = xi for i = 1,2. In each case, is there a pair of effort levels that yields higher payoffs for both players than do the Nash equilibrium effort levels?

Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?

Increases in output and increases in the inflation rate have been linked to

Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive