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2 years ago

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

2 answers:

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.

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Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: D

Sauron [17]

Answer:

$33,630

Explanation:

Given that the company's collection history shows that 43% of credit sales are collected in month of sale and the remainder (57%) is collected in the following month then, in the month of January, Cash collections in January from December credit sales would be equivalent to 57% of December Credit sales. Using the actual figures,

Cash collections in January from December credit sales would be

= 57% * 59,000

= $33,630

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3 years ago

At December 31, 2020, Pharoah Company has outstanding three long-term debt issues. The first is a $2,370,000 note payable which

Snezhnost [94]

Answer:

The first is a $2,370,000 note payable which matures June 30, 2023.

The second is a $5,580,000 bond issue which matures September 30, 2024.

annual sinking fund payments of $2,570,000 in each of the years 2022 through 2026.

Year Amount of long term debt Working

2021 $0

2022 $2,570,000

2023 $4,940,000 = $2,570,000 + $2,370,000

2024 $8,150,000 = $,2,570,000 + $5,580,000

2025 $2,570,000

2026 $2,570,000

Long term debt is debt that must be paid in a period of time longer than one year. Debts that are due in less than one year are classified as current debts or liabilities. That is why there is no long term debt for 2021 (current year).

7 0

3 years ago

The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending in

Vlad1618 [11]

If Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending inventory 97,400 87,750 92,500 compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2:

a) Inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2

Inventory turnover =$426,650/($92,500+$87,750)/2

Inventory turnover=$426,650/$90,125

Inventory turnover=4.7 times

Days' sales in inventory=$87,750/$ 426,650×365 days

Days' sales in inventory=$87,750

Days' sales in inventory=75.07 days

b) Inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3

Inventory turnover=$643,825 /($87,750+$97,400)/2

Inventory turnover=$643,825/$92,575

Inventory turnover=6.95 times

Days' sales in inventory=$97,400/$643,825×365 days

Days' sales in inventory=55.22 days

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4 0

2 years ago

"jasper company, inc. Is a wholesaler that buys merchandise in large quantities. Its supplier's catalog indicates a list price o

Setler [38]

Answer: Jasper's net purchase price unit is $357.

Since Jasper orders in large quantities, Japser is eligible for the trader's discount at 30%.

So, the price per unit will be:

$Price per unit after discount = 500 * (1 - 0.3) = 350$

Shipping costs are charged by the shipper and Jasper doesn't get any discounts from the shipper. So, we add shipping costs per unit to the discounted price per unit to arrive at the purchase price per unit.

$Purchase Price = Discounted Price + Shipping Costs$

$Purchase Price = 350 + 7 = 357$

8 0

3 years ago

Fuchsia provided services to 1,600 clients in the month of March and generated $23,500 as revenue. How much is the cost per s

pshichka [43]

Answer:

$10.72

Explanation:

Calculation for How much is the cost per service

First step is to calculate the Total costs

Building Rent Expense $5,200

DepreciationExpense—Equipment 1,600

Supplies Expense 8,000

Utilities Expense 2,350

Total costs $17,150

Now let calculate the Cost per service using this formula

Cost per service = Total costs / Services

Let plug in the formula

Cost per service = $17,150 / 1,600

Cost per service = $10.72

Therefore the cost per service is $10.72

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3 years ago