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Possible Answers: 1. a) $0 b) $1 c) $3 d) $6 e) $5 2. a) 3,000 b) 0 c) 500 d) 1,

ID: 1100949 • Letter: P

Question

Possible Answers:

1. a) $0 b) $1 c) $3 d) $6 e) $5

2. a) 3,000 b) 0 c) 500 d) 1,500 e) 2,500

3. a) 2,000 b) 2,500 c) 1,500 d) 2,250 e) $1,250

4. a) 2,000 b) $1,250 c) $2,500 d) 2,250 e) $1,500

5) a) decrease b) increases

6) a) $2.50 b) $2 c) $4.50 d) $3.50

7) a) $4,000 b) $2,500 c) $2,000 d) $1,500 e) $4,375

8) a) $4,375 b) $3,375 c) $2,000 d) $1,500 c) $1,875

9) a) $2,500 b) $2,000 c) $1,500 d) $2,250

10) a) $2,250 b) $2,500 c) $1,500 d) $2,000

11) a) $4,500 b) $0 c) $3,375 d) $4,000

12) True or False

13) a) a prisoners' dilemma b) a Nash equilibrium c) tying d) a tit-for-tat strategy

Suppose that there is a town only two of the residents, Rajiv and Hilary, own wells that product water safe for drinking, and suppose that Rajiv and Hilary can pump and sell as much water as they want at no cost. For them, total revenue equals economic profit. The following table the town's demand schedule for water.

Explanation / Answer

1- (c) $3

2-(d) $1500

3-(d)$2250

4-(d)$2250

5-(a) decreased

6-(a)$2.5

7-(b)$2500

8-(e)$1875

9-(b)$2000

10-(d)2000

11-(d)4000

12- true

13-(d) a tit for tat strategy