Oil producing countries need to maintain the price of oil from decreasing, and for this reason...
Oil producing countries need to maintain the price of oil from decreasing, and for this reason they need to limit the total production of oil. Therefore, they try to maximize their profit by predicting the production level of other countries. Consider the following hypothetical situation, where Saudi Arabia and Venezuela get varying profit margins for the oil they produce. Venezuela can either produce 1M barrels per day or 2M barrels per day, while Saudi Arabia can produce 4M barrels per day or 5M barrels per day. If the total production of the two countries is 5M barrels, then the profile margin is $16 per barrel. If the total production is 6M barrels, then the profile margin is $12 per barrel. If the total production is 7M barrels, then the profile margin is $8 per barrel.
i) Illustrate this scenario in a pay-off matrix. (6 marks)
ii) State if there are any (pure strategy) Nash equilibrium states, and which are they?(4 marks)
iii) Is there a dominant strategy for either country? (3 marks)
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Oil producing countries need to maintain the price of oil from
decreasing, and for this reason...
There are two oil-producing countries: A and B. Each can choose their own level of oil...
There are two oil-producing countries: A and B. Each can choose their own level of oil production: low L or high H. At low production, a country produces 2 million barrels of oil per month, while at high production, a country produces 4 million barrels of oil per month. Costs of production for A are $8 per barrel; for B, $16 per barrel The price of oil each month depends on the total output from these two countries onto the...
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3. Venezuela 3 M barrels 4 M Barrels 120, 60 144,54108.48 135,45 Saudi Arabia 8 M...
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Question 19 (1 point) Consider Iran and Iraq and their production of oil and olive oil....
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I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
There are two oil-producing countries: A and B. Each can choose their own level of oil production: low L or high H. At low production, a country produces 2 million barrels of oil per month, while at high production, a country produces 4 million barrels of oil per month. Costs of production for A are $8 per barrel; for B, $16 per barrel The price of oil each month depends on the total output from these two countries onto the...
3. Venezuela 3 M barrels 4 M Barrels 120, 60 144,54108.48 135,45 Saudi Arabia 8 M barrels M barrels The numbers on the left represent Saudi Arabia's profit, the numbers on the right represent Venezuela's. Each country has two choices of how much oil to produce, depending on the total amount of production their profits change. A. Determine the equilibrium of the above game. Does either country have dominant strategy? B. Is this a prisoner's dilemma? Is it the best...
Question 19 (1 point) Consider Iran and Iraq and their production of oil and olive oil. Relatively recent OPEC estimates indicate that in July 2012. Iran produced about 4.1 million barrels of oil per day and Irag produced about 3.2 million barrels of oil per day, making them the second- and third-largest oil producers in OPEC, behind Saudi Arabia (and the 4th and 7th largest oil producing countries in the world). Suppose that Iran and Iraq both produce barrels of...
4. The oll cartel The Organization of Petroleum Exporting Countries (OPEC) is a group of 12 member countries that formed a cartel to sel petroleum on the world market. They support prices higher than would exist under more competitive conditions to maximize member nation profits and restrict competition among themselves via production quotas. Suppose that OPEC does not exist and that the 12 oil-producing nations compete in the world market, which is perfectly competitive. On the following graph, use the...
A government might choose to implement a price floor to O A. keep specific prices up. O B. satisfy notions of equity. O c. give into powerful political groups. OD. All of the above have served as motivations. Demand and Supply Schedules for Chocolate Bars Price Quantity Demanded Quantity Supplied ($) (thousands per week) (thousands per week) 2.00 1500 2100 1.80 1600 2050 1.60 1700 2000 1.40 1800 1950 1.20 1900 1900 1.00 2000 1850 0.80 2100 1800 0.60 2200...
Read the case study and answer the questions in the end. Towards a diversified knowledge economy ECONOMIC DVERSIFICATION DRIVES GROWTH IN THE UAE UAE expects higher non oil growth in 2018 due to diversified economy 3.5 70 TOP COUNTRY Source www.putees.co sF KY ScroRs 100 MLLION 25 240 5 200 30 Diversification is important to promote economic development, to create job opportunities for a rapidly growing local workforce, but also to reduce or spread the risk of a high economic...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
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