In this scenario, there is no strategy that Martha can embark on that would provide the greatest payout regardless of Oleg's decision. If Martha advertises, Oleg makes the same amount advertising as well. If Martha does not advertise, Oleg would decide not to advertise as well and make the same amount.

Martha therefore has no dominant strategy as Oleg would make the same amount regardless of which decision is taken.

5 0

3 years ago

You are going to a dinner whith three (3) friends, one who likes steak, another wine, and the third is a vegetarian (which is as

DENIUS [597]

Answer:

the answer is option D)<u>Equal sharing of the bill ensures that people order a similar dollar amount of food</u>

Explanation:

The theory of consumer behavior states that "consumers allocate incomes among different goods and services to maximize their utility"

Consumer behavior revolves around three parameters their preferences, budget constraints, and options available.

The budget constraint will definitely influence the choice of what to buy within the options available to maximize utility. That means how the bill is shared among the three friends will ultimately affect how much they will chose to eat.

Secondly, The vegetarian will not be better off with equal sharing of the bill because the cost of his food according to the data provided is less.

We don not know for sure if the wine drinker drinks too much or whether he will want his other friends to foot the extra bill from the cost of his wine but we are certain that equal sharing of the bill ensures that people order a similar dollar amount of food.

3 0

3 years ago

What are the set of rules that people need to follow while communicating at the workplace called?

Alex777 [14]

Code of conduct. This is a set of rules that everyone is expected to know and follow to the fullest extent.

7 0

3 years ago

Read 2 more answers

Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in thi

Wittaler [7]

Answer:

Option (a) is correct answer (14 Months)

Explanation:

Given data

Investing in TQM = $2,000,000

Minimum rise in demand = 3.0 %

Last year’s sales = $163,508,343

As per the given data next year sales is increased by 3.0%. So, 3.0% of last year sales

=> 0.03 × $163,508,343 = $4,905,250.29 ~= $4,905,250

Income added to the bottom line = 34.1% of increased demand

=> 0.341 × $4,905,250 = $1,672,690.25~= $1,672,690

Payback on the initial $2,000,000 TQM investment can be attained in a period and can be computed by using the formula

=> (Investment in TQM / Revenue added to the bottom line) × 12

=> ($2,000,000 / $1,672,690) ×12 = 14.34 ~ = 14 Months

7 0

3 years ago