Rachel and Joey are two students who are dating. Before they left for class this morning, they decided to meet for dinner in the evening. After their last class, they go home and get ready for their date. Unfortunately, although they both remember the time—7:00 p. m.—neither of them can remember where they agreed to meet: Clementine or Beyond. Also, there is no way for them to contact each other before 7:00 p. m. Where should they go? Let’s assume that Joey prefers Clementine to Beyond, but Rachel prefers Beyond to Clementine. Joey loves Rachel, however, so he would rather be with her at Beyond than by himself at Clementine. Rachel loves Joey, so she would rather be with him at Clementine than by herself at Beyond. The figure below is the payoff matrix, where the payoffs are measured in utils (happy points).

What is Joey’s dominant strategy?

What is Rachel’s dominant strategy?

What is the Nash equilibrium?

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?

You are to receive five gold coins from your great uncle as an incentive to study hard. the coins were originally purchased in 1982. your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable"). the amount your great uncle paid for the coins is a(n): indirect cost. overhead cost. opportunity cost. sunk cost.

The goal of an economist who formulates new theories is to a. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. b. provoke stimulating debate in scientific journals. c. contribute to an understanding of how the world works. d. demonstrate that economists, like other scientists, can formulate testable theories.