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3 years ago

When goodyear increases its production when michelin reduces its production, goodyear is playing a

Business

2 answers:

hram777 [196]3 years ago

8 0

Answer:

A. Non- cooperative game

Explanation:

Goodyear is playing a non-cooperative game.

A non-cooperative game is a game with competition between individual players, as opposed to cooperative games, and in which alliances can only operate if self-enforcing

Dmitry_Shevchenko [17]3 years ago

8 0

Answer: The correct answer is a) non-cooperative games.

Explanation: Non-Cooperative Games refer to the games in which the players decide on their own strategy to maximize their profit. Here, individual players do not cooperate and each form its own strategy.

Goodyear taking advantage of the reduction in production by Michelin is a good example of non-cooperative games.

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If Glass Inc. produces 80 window panes per day at the market price of $60 in a perfectly competitive market, what would happen t

Verdich [7]

Answer:

Price will not change

Explanation:

A perfectly competitive market is a market where there are many firms that produce and sell similar products, no barriers to entry and exist, all firms are price takers and none of the firms is big enough or has the power to influence the market or change the price in the market.

The implication is that a firm can decide to increase its output to any level in perfectly competitive market market, but this increased out can only be sold at the market price which it has no power to change.

Therefore, if Glass Inc. Glass Inc. increases production to 120 window panes from 80, the price will still remain at $60, every other thing remain constant.

I wish you the best.

8 0

3 years ago

A client recently purchased a sizeable number of mutual fund shares and knows that the Net Asset Value will change daily. The cu

julsineya [31]

Answer:

(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.

Explanation:

The Net asset value(NAV) of any mutual fund corporation can be determined using below mentioned formula:

Net asset value(NAV) per share=(Current market value of all assets - liabilities) /Total number of shares outstanding.

Based on the above formula, the statement which best describe the computation to arrive at NAV per share is

(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.

7 0

3 years ago

1. Consider two countries, France and Russia, and two goods, wine and vodka. Assumethat in both countries, both wine and vodka a

padilas [110]

Answer:

France and Russia

Purchasing Power Parity (PPP):

a) Ratio of the dollar-price of vodka in France relative to the dollar-price of vodka in Russia = 2:1

b) For relative PPP to hold, the expected inflation rate in South Africa must be 0.06

Explanation:

a) Data and Calculations:

Wine in France = Vodka in Russia

Dollar price of wine in France = 1

Dollar price of wine in Russia = 2

Ratio of the dollar-price of vodka in France relative to the dollar-price of vodka in Russia = 2:1

b) This means that if the price of vodka in Russia is $1 per bottle, for instance, the price of vodka in France will be equal to $2 per bottle.

c) Data and Calculations:

Expected inflation rate in Australia = 0.02

Expected currency appreciation of Australian dollar against that of South Africa = 0.04

For relative PPP to hold, the expected inflation rate in South Africa must be 0.06 (0.02 + 0.04).

d) France and Russia's absolute purchasing power parity will hold when the purchasing power of Francs is exactly equal in France's domestic economy and in the Russian economy, once it is converted into the Russian ruble at the market exchange rate. For our example, the relative purchasing power parity (RPPP) states that exchange rates and inflation rates (price levels) in Australia and South Africa should equal out over time.

3 0

3 years ago

During a recession, median income falls by 15%. if the demand for grapes falls by 12%, grapes are a(n) _____ good with an income

IgorLugansk [536]

<span>Grapes are a(n) "normal good" with an income elasticity of demand of "0.8". A normal good is a good for which an increase in income results in increased demand, while decreased income results in decreased demand. Thus, we know that the first blank is "normal good" by the definition of a normal good becuase median income fell and demand for grapes fell. The X elasticity of demand is given by (%change in Demand)/(%change in X), where x is any economic variable (income in this case). Thus, to find the elasticity, we divide 12% by 15%. 12%/15%=.08.</span>

7 0

3 years ago

Kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $19 million. The fair value of Midwest's assets

shutvik [7]

Answer:

$7.2 million

Explanation:

For computing the amount paid for the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = Fair value of Midwest's assets - fair value of Midwest's liabilities

= $14.3 million - $2.5 million

= $11.8 million

And, the acquisition price of the outstanding stock is $19 million

So, the goodwill would be

= $19 million - $11.8 million

= $7.2 million

4 0

3 years ago

When goodyear increases its production when michelin reduces its​ production, goodyear is playing a

When goodyear increases its production when michelin reduces its production, goodyear is playing a