Assume that the characteristic function of a coalition between three individuals named 1,2, and 3 is V(1,2,3) = $60; while V(1) = $20, V(2) = $16, and V(3) = $10, where V(i) is the value created by individual i. Which of the following allocations will lie within the core?
a. Payoffs to individuals 1,2, and 3 are $19, $35, and $6 respectively.
b. Payoffs to individuals 1,2, and 3 are $30, $18, and $12 respectively.
c. Payoffs to individuals 1,2, and 3 are $32, $20, and $8 respectively.
d. Payoffs to individuals 1,2, and 3 are $28, $15, and $17 respectively.
B
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A) $700 billion. B) $500 billion. C) $800 billion. D) $900 billion. E) $100 billion.
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A) greater than B) less than C) equal to D) zero compared to E) not comparable to
If a monopoly's demand curve shifts to the right, the
A) monopoly will charge a higher price. B) monopoly will charge a lower price. C) monopoly will sell more. D) monopoly's decision cannot be determined.
What does the existence of labor unions mean for the labor market and for unemployment?
A. Wage rates could rise above equilibrium level. B. Wage rates could fall below equilibrium level. C. Unemployment could reach zero. D. Unemployment could grow to unsustainable levels.