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.
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Answer:
The effective rate of interest in the fifth year is 6.15%
Explanation:
Mathematically, the effective rate of interest can be calculated as follows;
Reff = (1 + r/y)^y - 1
where;
r is the interest rate = 6% = 6/100 = 0.06
y is the period = 5 years
Substituting these values;
Reff = (1 + 0.06/5)^5 - 1
Reff = (1 + 0.012)^5 - 1
Reff = 1.012^5 - 1
Reff = 1.061457 - 1
Reff = 0.0615 which is 6.15%
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Not necessarily. Sure, there are some things where it is very clear what is right and wrong but there are so many situations where it is hard to differentiate between what is right and what isn't.
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The amount of uncollectible accounts expense recognized on the Year 2 income statement is $1,830.
Explanation:
- On January 1, Year 2, Grande Company had balance = $69,600 in the Accounts Receivable account
- Grande provided services = $183,000
- The Allowance for Doubtful Accounts account = $2,600
- The company collected cash from accounts receivable = $215,500
- Uncollectible accounts are estimated to be = 1% of sales on account
- Thus, following calculation gives the desired result,
- Multiply amount of Grande services with 1% sales on account.
- i.e : $183,000 sales on account × 1% = $1,830
- So, the amount of uncollectible accounts expense is $1,830 as the income statement for the 2nd year.
- The reserves are recorded when, the uncollectible accounts expense are debited and credit the allowance for the uncollectible accounts.
- There are many reasons for the uncollectible accounts such as,
- the debtor's bankruptcy,
- the inability to get the debtor,
- fraud, etc
Answer:
<h2>In this case,the answer would be option A. given in the answer choices or options or a company sales force; manufacturer's reps.</h2>
Explanation:
- Motorola basically wants to gain higher control or authority over its sales force in the urban areas in Mexico to better handle and channelize its sales activities in the urban regions of the country to increasingly capture the urban consumer base.
- Therefore,it will probably consider employing more or higher sales force in the urban areas to mobilize the sales activities in the targeted regions.
- On the other hand,it is relatively less concerned about reaching the rural or less populated counterparts in the country, which reasonably implies that it will deploy manufacturer representatives in those regions as mobilization of sales activities is not the priority in this case.
