Two startups, Ultra and Soar, have develop fairly similar ridesharing apps and are competing for customers by deciding how much to advertise their app. Let Ai ≥ 0 be the advertising level of firm i. The profits of each firm depend on how much it advertises its app but also on the advertising level of its opponent A−i . The higher the advertising levels the more visibility ridesharing apps and demand increases. In particular, firm i’s profits are ui(Ai , A−i) = (90 + Ai + A−i)Ai − 2A2 i . Ultra chooses A1 first and, after observing it, Soar chooses A2.

(a) Draw the extensive form. Which are the proper subgames?
(b) Find the SPNE. How does it compare to the NE of the simultaneous move game?
(c) Is there a first-mover advantage in the market? Justify your answer

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?

Your debit card is stolen, and you report it to your bank within two business days. how much money can you lose at most? a. $500 b. $25 c. $50 d. $150

The following are line items from the horizontal analysis of an income statement:increase/ (decrease) increase/ (decrease) 2017 2016 amount percent fees earned $120,000 $100,000 $20,000 20% wages expense 50,000 40,000 10,000 25 supplies expense 2,000 1,700 300 15 which of the items is stated incorrectly? a. fees earned b. supplies expense c. none of these choices are correct. d. wages expense