Economic principles for minimum wages
Task:
Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level? Defend your position using economic principles.
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Given that a) and b) hold, find conditions on a and c such that (R1, C1) is a Nash equilibrium. Given that a) - c) hold, find conditions on d, e such that (R1, C1) is the unique Nash equilibrium.
1) Write down the normal form (payoff matrix) of this game. 2) Find the Nash equilibrium.
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Companies A and B are the only competitors in the market. Each has to decide what price to set for its product. Once prices are set, they cannot be changed for the year. Both firms set prices at the same time.
Fill in the following game matrix using the numerical information provided.
If the actions don't match, the reviewer wins with a payoff of 35 and the employee loses with a payoff of -35. Diagram this game and comment on the equilibrium.
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