1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alika [10]
2 years ago
10

Game theory suggests that competing firms in an oligopolistic industry may be

Business
2 answers:
alina1380 [7]2 years ago
6 0

Game theory suggests that competing firms in an oligopolistic industry may be  reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases.

<h3>What is Game theory?</h3>

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing. Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

Here are the options:

. too quick to raise prices because they will fail to anticipate that rivals may gain market shares.

b. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases

c. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases

d. too quick to cut prices because they fail to anticipate that rivals may also cut their prices.

To learn more about game theory, please check: brainly.com/question/25746243

Law Incorporation [45]2 years ago
3 0

Game theory suggests that competing firms in an oligopolistic industry may be reluctant to price changes.

<h3>What do you mean by oligopoly?</h3>

An oligopoly is a form of market that is made up of a few large firms engaging in strategic behavior. An automobile is the best example of an oligopoly market.

A game theory suggests that competing firms in an oligopoly industry may be reluctant in changes the price because they can analyze that rivals can match the price cuts but generally ignore the increase in the prices.

Learn more about oligopoly here:

brainly.com/question/14093864

#SPJ4

You might be interested in
Which statement best describes payday leaders and pawnbrokers?
miv72 [106K]
C: They charge extremely high interest rates.
6 0
2 years ago
Read 2 more answers
What is the main problem that sellers suffering from marketing myopia​ face?
Tanya [424]
The answer is "<span>They focus more on products than the​ customer's underlying need.".
</span>
Marketing Myopia is marketing term as it shows by its name, referred to short-sighted and inward looking way to deal with promoting that spotlights on the requirements of the organization as opposed to characterizing the organization and its items as far as the clients' needs. It brings about the inability to check and accommodates to the quick changes in their business sectors or markets.
8 0
2 years ago
Read 2 more answers
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose
goldfiish [28.3K]

Answer:

The two optimal two part price that would be suggested to Verizon is Unit per Fee = $1 and Lump Sum fee or fixed fee = $99

Explanation:

Solution

For us fully maximize profit under two part price It should gives  that amount of wireless service at which P = MC and and also charge Lump sum fee or fixed fee equals to the consumers surplus that consumer will have.

Now,

marginal cost= MC  = 1 and P = 100 - 25Q.

Thus,

P = MC => 100 - 25Q = 1 => Q = 2

Then,

The Consumer surplus is the above area Price of  line which is (iP = 1) and below is the curve of demand

Now,

P = 100, When Q = 0 The Consumer surplus = (1/2)*base*height

= (1/2)*(100 - 1)*2 = 99

Therefore, Fixed fee or The Lump Sum fee = 99

However, the  Optimal two part pricing is denoted by:

The Unit per Fee = $1 and Lump Sum fee or fixed fee = $99

4 0
2 years ago
Maplewood Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 Maplewood has recei
Anika [276]

Answer:

$8.1

Explanation:

Variable cost to be incurred for the offer = ($420,000/70,000) * 3,000

Variable cost to be incurred for the offer = $6 * 3,000

Variable cost to be incurred for the offer = $18,000

Additional Fixed cost = $6,300

Total Cost incurred for the offer = Variable cost to be incurred for the offer + Additional Fixed cost

Total Cost incurred for the offer = $18,000 + $6,300

Total Cost incurred for the offer = $24,300

Unit Sales Price (Break even) = Total Cost incurred for the offer / 3,000 units

Unit Sales Price (Break even) = $24,300 / 3,000 units

Unit Sales Price (Break even) = $8.1

8 0
3 years ago
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000 Sales revenue $ 2,132,000 Variable
svetoff [14.1K]

Answer:

unitary contribution margin= $2.52

Explanation:

<u>First, we need to calculate the total variable cost:</u>

Total variable cost= Variable manufacturing expense + Variable selling and administrative expense

Total variable cost= 560,000 + 260,000

Total variable cost= $820,000

<u>Now, the unitary variable cost and the selling price:</u>

unitary variable cost= 820,000 / 520,000= $1.58

Selling price= 2,132,000 / 520,000= $4.1

<u>Finally, the unitary contribution margin:</u>

unitary contribution margin= selling price - unitary variable cost

unitary contribution margin= 4.1 - 1.58

unitary contribution margin= $2.52

7 0
2 years ago
Other questions:
  • Ben is saving 1/5 of his weekly pay to buy a car Write and solve an equation to find what weekly pay w results in savings of $61
    14·1 answer
  • A warranty of title does not arise automatically under a contract for a sale of goods.
    5·1 answer
  • Diaz Company reports the following variable costing income statement for its single product. This company’s sales totaled 55,000
    6·2 answers
  • company's retained earnings have a financing cost associated with them because retained earnings belong to which of the followin
    10·1 answer
  • Watching his children graduate from high school is most likely a long-term goal for a person of which of these ages? A. 17 years
    13·1 answer
  • Assume you run the central bank of a large open economy with floating exchange rates. Output, unemployment and inflation are whe
    12·1 answer
  • You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends.
    7·1 answer
  • The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects tha
    5·1 answer
  • Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is trea
    11·1 answer
  • Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through tw
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!