i. What is the highest that w can get in order for the firm to best respond
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i. What is the highest that w can get in order for the firm to best respond to workers (who play the strategy in (b)) by playing the strategy in (a)? Combining this with your answer to (h), how must 1x 2 e2 be related to w*,
d, g, and e in order for the strategies in
(a) and
(b) to constitute a Nash equilibrium? Given your answer to A(d), will it always be the case that firms hire nonshirking workers whenever it is efficient?
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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