In this problem we will ask whether an information cascade can occur if each individual sees only the action of his immediate neighbor rather than the actions of all those who have chosen previously. Let’s keep the same setup as in the Information Cascades chapter, except than when individual i chooses he observes only his own signal and the action of individual i − 1.

(a) Briefly explain why the decision problems faced by individuals 1 and 2 are un- changed by this modification to the information network.

(b) Individual 3 observes the action of individual 2, but not the action of individual 1. What can 3 infer about 2’s signal from 2’s action?

(c) Can 3 infer anything about 1’s signal from 2’s action? Explain.
(d) What should 3 do if he observes a high signal and he knows that 2 Accepted?

What if 3’s signal was low and 2 Accepted?

(e) Do you think that a cascade can form in this world? Explain why or why not. A formal proof is not necessary, a brief argument is sufficient.

marginal cost is a microeconomic measure that us to evaluate the extent to which the level of production of a good is sustainable in accounting, that is, to how many quantities the company plans to profit from the production of the good.

the concept of marginal cost is simple, it means the cost of producing one more item. for example, in the case of pies, the marginal cost is the cost of producing one more pie than those that have already been produced.

it is important to understand that productive activity influences marginal cost. the marginal cost of some goods can be very high, while others may be insignificant. for example, the marginal cost of producing an extra plane is very high. already the marginal cost of a water company to provide 1l more water is derisory.

in the case of pies, the cost involves the inputs, the labor and the fixed cost, which involves the fixed space of the bakery. the level of production initially has the marginal cost decreasing because there is space and manpower available. however, to produce more you have to hire more workers and buy more inputs. if physical space is limited, workers will conflict with places, inputs and their productivity will decrease, meaning there is an optimum point of production for each level of space and manpower. from this point on, the productivity of the workers will be getting smaller because of lack of space, so that the marginal cost of producing one more pie will be increasing. so, although you have not posted the chart, but if you have the answer, you can see that my explanation goes according to the marginal cost curve that will increase from the 4th pie, answer (c).

i believe

clean air is essential for health and survival

clean air provides nitrogen gas for plant respiration

clean air supplies oxygen that enables living organisms to breathe

hope this

i am brianly

sorry if this doesn't

your answer would b. the missisipi river

hope i you : )

the template that is used is page layout then the margins option and finally choose the normal option.