Question 39: Another community has 3 linguistic groups, Type A’s who …

In a community of 1000 people, there are 300 type A people whose native language is Language A and 700 type B people with native language B. Everyone can speak and understand his or her native language. A native speaker of Language A can learn language B at cost CA ≥ 0 and a native speaker of Language B can learn language A at cost CB ≥ 0. The value to anyone of being able to speak to and understand another person is 1 per person. Based on the above data, answer the given subquestions.

Another community has 3 linguistic groups, Type A’s who speak language A, Type B’s who speak language B and Type C’s who speak language C. There are 500 Type A’s, 300 Type B’s and 200 Type C’s. Everybody has the same cost C of learning any language other than his or her native tongue. The benefits of being able to speak to and understand any other person in the community is 1 per person. For what values of C would it be true that there is a Nash equilibrium in which nobody learns any language other than their native tongue, but also another Nash equilibrium in which the type B’s and type C’s learn language A.