Recall the story of Alice and Bob, who like to be together but have different taste in movies. Each can choose to go to either Movie A or Movie B. For Alice, the payoff from going to Movie A is 3 if Bob is there and 1 if he is not. Alice’s payoff from going to Movie B is 2 if Bob is there and 0 if he is not. Bob’s payoff from going to A is 2 if Alice is there and 0 if she is not. Bob’s payoff from going to Movie B is 3 if Alice is there and 1 if she is not. Each is about to go to a movie. They forgot to settle on which one the last time they met. Bob has lost his cell phone, so they cannot contact each other.
A) Find a mixed strategy Nash equilibim in which each of them chooses to go his or her own favorite movie with some probability p between 0 and 1.
B) In the mixed strategy Nash equilibrium, what is the probability that they wind up at the same movie?

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.