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igor_vitrenko [27]
3 years ago
15

You walk onto a used-car lot to buy a car. You are willing to pay up to $15,000 for a car of good quality but you value a lemon

at $0.You are now wondering whether you should trust the car dealer regarding the quality of the car. If you choose to trust him, he can choose to cooperate or defect. If you do not trust him, neither will he earn money nor will you be able to buy a car and use it. If you trust him and he cooperates, both of you will gain because the dealer values a good-quality car at $13,000. However, if he defects, he will earn $15,000 while you will not derive any satisfaction.
Refer to the scenario above; you should use ________ to arrive at a decision.

A. forward induction
B. mixed strategies
C. backward induction
D. prisoners' dilemma
Business
1 answer:
Charra [1.4K]3 years ago
4 0

Answer:

C

Explanation:

Backward induction is the process of going backwards in time with yZermelour reasoningreasoning , from the end of a problem or situation, to determine a sequence of optimal actions. It starts by first considering the last time a decision might be made and choosing what to do in any situation at that time. Using this information, one can then determine what to do at the second-to-last time of decision. This process continues backwards until one has determined the best action for every possible situation (i.e. for every possible information set) at every point in time. IZermelo was the first to use this technique in 1913 to make a point that chess has pure optmal strategies

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Brokers differ from insurance agents in that ____
leva [86]

Answer: Option A          

Explanation: A broker refers to a person or a firm who charges fees from the investors for executing their purchase and sale transactions. The broker sometimes also charge their customers for their consultancy services.

Whereas insurance agents refers to the person who sell the insurance policies to the general public and in return gets commission from the insurance company on the premiums paid by the insured.

Hence from the above we can conclude that the correct option is A.

8 0
3 years ago
Product or service offered, how much,<br> at what price
Bogdan [553]

Answer:

Realizing the contrast among cost and worth can expand benefit: the expense of your item or administration is the sum you spend to deliver it. the cost is your money related award for giving the item or administration. the worth is the thing that your client accepts the item or administration is worth to them

Explanation:

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6 0
3 years ago
Sheridan Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports G
BigorU [14]

Answer:

b. $19500000.

Explanation:

Break-even point is the level of sales on which business has no profit no loss situation. The business only covers the variable and fixed cost at this point.

Total Contribution can be determined by calculating adding estimated contribution of each division.

Total Contribution ratio = (65% x 30%) + (35% x 50%) = 19.5% + 17.5% = 37%

Fixed cost = $7,215,000

Break-even point = Fixed cost / Contribution margin ratio = $7,215,000 / 37% = $19,500,000

7 0
3 years ago
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The government builds a new recycling plant. The manager of the company hires workers and pays them an annual salary. These work
OLEGan [10]

Answer:

Multiplier effect

Explanation:

Multiplier effect refers to the increases in the final income as a result of new injections in spending. It indicates changes in spending that causes changes in real gross domestic product more than the initial change in spending. The scenario presented in the question illustrates multiplier effect. It involves increase in the level of demand in the circular flow of income that stimulates buying and selling.

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This demonstration is part of the <span> making the presentation 
The purpose of this type of demonstration is to increase the product's appeal towards the target market. Through this, the company could increase the awareness on what their product can do and attract potential sales from the customers.</span>
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3 years ago
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