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QveST [7]
3 years ago
13

Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart and together they are the only gas statio

ns in town. At the current price of $3 per gallon both receive total revenues of $1,000. Joe is considering cutting his price to $2.90, which would increase his total revenue to $1,350 if Sam continues to charge $3. If Sam's price remains $3 after Joe cuts his price, Sam will collect $500 in revenues. If Sam cuts his price to $2.90, his total revenues would also rise to $1,350 if Joe continues to charge $3. Joe will collect $500 in revenues if he keeps his price at $3 while Sam lowers his to$2.90. Joe and Sam will receive $900 each in total revenue if they both lower their price to $2.90. You may find it easier to answer the following questions if you fill in the payoff matrix below 0e Keep Old ut Pri Pri Cut ice Keep Old 1. To Joe, leaving his price at $3 is a A. revenue maximizing strategy B. dominant strategy C. dominated strategy D. profit maximization strategy
Business
1 answer:
solmaris [256]3 years ago
3 0

Answer:

B. Dominant Strategy

Explanation:

A dominant strategy is one in which the individual wants higher payoff regardless of its others choice. In this strategy the individual does not consider what other players strategy is. They are looking for maximizing their returns.

In the given scenario Joe is also considering dominant strategy as he is not concerned with what strategy Sam will follow. Joe wants to keep its price at $3 per gallon even if Sam cuts the price.

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Jeff's Pizzeria can handle 30 orders during the day. It wanted to increase this number, so it started making its delivery boys d
MissTica

Jeff's pizzeria can handle 30 orders during the day.It wanted to increase this number,so it started making its delivery boys do minor chores in the kitchen when they were not out for delivery and made some of the chefs pick up customers' calls.This doubled the number of order Jeff's Pizzeria could handle.This approach is an example of <u>Synergy</u>

Answer: The correct answer is (B)

<u>Explanation:</u>

Synergy takes place when a concern use teams to increase performance and growth and it helps in achieving common goals.Synergy means collective performance or action which multiply the speed of team.

Synergy approach helps in speeding up the job and completing it in a desired time period.It increases the effectiveness of the team and enable the team to share common perspective,knowledge and experience.

Even if the members of the team are not talented enough but with group efforts or synergy a team can accomplish the things beyond their skills.

Synergy makes the team stronger .Ever team member gets the benefit and become prosperous.

6 0
3 years ago
Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops
babymother [125]

Answer:  No,the company is not guilty.

Explanation:  In the given case, Hines could not be considered guilty of price discrimination as the price charged from different shops was same. The free samples were distributed for the purpose of campaign and the discretion to which shop they want to provide lies completely with the company.

Price discrimination refers to the practice of charging different prices from different customer which the company have definitely not done.

Hence, Hines could not be charged of guilty of price discrimination.

6 0
2 years ago
Which of the following is not descriptive of external environmental scanning? used as a tool for corporations to avoid strategic
julsineya [31]

Answer:

used to identify major stockholders

Explanation:

Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information  in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.

Generally, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.

Hence, the following are descriptive of an external environmental scanning;

1. Used as a tool for corporations to avoid strategic surprise.

2. Used to monitor, evaluate, and disseminate information relevant to the organizational development of strategy.

3. Used to determine a firm's competitive advantage.

4. Used as a tool to ensure a corporation's long-term health.

7 0
3 years ago
Why does the government plan its financial expenditure framework for a period of five years?
drek231 [11]

This is to ensure that they complete the project within the appointed period of time as well as within the budget given to them.  It also shows how effective the government is in implementing their projects.  If they don’t do so within the period and the budget then people will question their efficiency in completing their assignments and project within the period prescribed.

7 0
3 years ago
Let's assume that a firm produces 40 products. Its total weekly cost (TC) at this output is $1200. This includes TVC and TFC. We
ikadub [295]

Answer:

$15

Explanation:

The computation of the average fixed cost is shown below:

As we know that

Average fixed cost is

= Total fixed cost ÷ Quantity

where,

Total fixed cost is

= Total cost - total variable cost

= $1,200 - $200 × 3

= $1,200 - $600

= $600

And the quantity is 40 products

So, the average fixed cost is

= $600 ÷ 40

= $15

3 0
2 years ago
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