According to Game Theory – Prisoner’s Dilemma, the US and the Soviet Union both cheated during the Cold War, and instead of sticking to the agreement of cutting down on nuclear weapons, they both increased their production of nuclear weapons (because whichever country that breaks the agreement will have a superior advantage over the other). Let’s apply Game Theory – Prisoner’s Dilemma to gun control.  There are 2 types of people living in the US: criminals and law abiding citizens.  If guns are banned tomorrow, will both parties obey the gun ban?  Explain your answer. 

Answer questions A and B: a. If you are China, what is good about you devaluing your own currency? b. If you are China, what is bad about you devaluing your own currency? 

Perfect Competition: in order to maximize Profit, the firm’s Selling Price and Quantity produced is at MR = MC. In a Monopoly (see graph below, which is a Monopoly), how does the firm know what Price to charge and what Quantity should be produced, in order to maximize Profit?  Explain the process.

Let’s say there is a specific factor input, which is labor.  What will happen to the MRP curve for labor as the price of the product that the labor produces increases?

Why is a managed float hypocritical?

Give the simplest definition of Economies of Scale.

What is a limitation of N-grams?

Which real-world tool is most likely to use an N-gram model?

Suppose the market demand curve is

Pierre considers soda (X) and composite good (Y) to be perfect substitutes. His income is m = $200.  Suppose his utility function is 1. If soda cost $2, how much soda does he consume? [Answer1a1] How much money does he leave for everything else? [Answer1a2] 2. If soda cost $1, how much soda does he consume? [Answer1b1] How much money does he leave for everything else? [Answer1b2] 3. if soda cost $0.5, how much soda does he consume? [Answer1c1] How much money does he leave for everything else? [Answer1c2] Instructions: if any bundle on the budget line may be chosen, please type in exactly the following – Chosen bundle can be any point on the budget line