Question
Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sitting next to the other person, which is more comfortable than standing. Suppose that each person cares only about her own comfort. Model the situation as a strategic game. Find its Nash equilibrium (equilibria?).
More Microeconomics Section Tests Questions
- Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sittin...
- Suppose we regress the dependent variable y on four independent variables x1, x2, x3, and x4. After running the regression on n = 16 observations, we have ...
- If the Marginal Product of Labor (MPL) is 20 and the MRTS of Labor for Capital is 4, what is the Marginal Product of Capital (MPK)?
- A firm should increase investment when :
- The "Cessation of Production" or the Long-run Exit Condition for a firm occurs when:
- Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sittin...
- If the Elasticity of Scale (epsilon) is exactly 1.2 at a specific level of output, a 10% increase in all inputs will lead to:
- A firm’s total fixed cost is 500. When output is 50 units, the total variable cost is 1000. What is the Average Total Cost (ATC) at 50 units?
- Suppose we regress the dependent variable y on four independent variables x1, x2, x3, and x4. After running the regression on n = 16 observations, we have ...
- If the demand function is P = 100 - 2Q, what is the Marginal Revenue (MR) at Q = 10?
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)