ECN 200C Midterm: ECN 200C Midterm Version 1 Spring 2007
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Answer all questions (total 100 points: [35 points] there are n 2 players. Each player picks an integer in the set {1, 2, , 30} in denote the choice of player i and let be ignorance of the choice of the other players. Those players whose choice is closest to 2 x i. 3 example: n = 3, so that player 3 wins ,000 while players 1 and 2 lose ,000 each. 10 = so that players 2 and 3 win. ,000 each, while player 1 loses ,000. (a) [10 points] show that for every player i, x i. For each unit of output, firm 1 requires one unit of labor and one unit of raw material, while firm 2 requires two units of labor and one unit of raw material. The unit costs of labor and raw material are w and r, respectively.
