Answer the following questions at 150 words each.

1. In your textbook (Chapter 17, Figure 4), you see a common resources game that asks, “Should we drill another well or not?” Consider this game and describe what the dominant strategy is (as per the textbook). Consider what will happen if this becomes a repetitive game (both oil companies knowing they will share many oil fields over the next years). Will the dominant strategy survive, and—if not—what strategy could emerge as “best”?

2. Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competition. What is the goal of creating a brand name for each of these market structures? What does the brand name do to the demand curve for the product? What is the role of advertising in each of the four market structures? As you answer these questions, illustrate your points with original examples.

3. What are the factors that affect pay differentials? How does each factor increase or decrease relative wages? Explain how discrimination can cause pay differentials between men and women in similar occupations.

Explain how factors other than discrimination could affect relative wages.

4.Much has been made of the fact that people don’t consistently act with scientific rationality. What is meant by rationality? Consider the three “systematic mistakes” discussed in your textbook. What are the costs of making those systematic mistakes? Is it possible to act irrationally, or is rationality defined by the individual’s approach to decision making?