Answer: Option A -- Choosing low is a weakly dominant strategy for Apple.
Explanation: Dominant strategy in a game theory can be defined as the course of action that occurs when one strategy/player is better than the other strategy/player regardless of what the other player does or how well the other player may play. dominant strategy is all about a player who has the highest favours in a game. Considering the above matrix, we know that Apple has the dominant strategy. And for apple to choose low is a weakly dominant strategy for it.
Answer: Independence
Explanation: Independence can be explained as a state of existence where one's personal decisions, actions or steps does not hinge on another person's approval or acceptance. It could be seen as a state of autonomy where one can personally decide and actions one feels is best for a certain process at a particular time.
As a business owner, one thinks and acts based on one's personal volition of what is best for his or her business without having to sit and discuss with a group of individual's who may habiur different perceptions or scope. This freedom is usually enjoyed by small business owners rather than large groups of companies or corporations.
Answer:
$1,667
Explanation:
Given that,
Savings account at the beginning of the year = $2,000
Price level at the beginning of the year = 100
Price level at the end of the year = 120
Price level increases from 100 to 120
Therefore, what was worth $120 earlier, is not worth only $100.
Hence, $120 at the beginning of the year is worth = $100 at the end of the year
$1 at the beginning of the year is worth = ($100 ÷ $120) at the end of the year
Savings of $2,000 at the beginning of the year is worth:
= ($100 ÷ $120) × $2,000
= 0.833 × $2,000
= $1,667
Therefore, the real value of the savings is $1,667.
Answer:
C) $4,000
Explanation:
To calculate economic profit we can use the following formula:
economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs
where:
- accounting profit = total revenue - accounting cost = $50,000
- implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000
economic profit = $50,000 - $46,000 = $4,000
This indicates that the society is using resources efficiently and effectively. This is because all economies tend to go towards the equilibrium and if they don't, that's bad for the economy.
