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Ronch [10]
3 years ago
11

Suppose that McDonalds and Yum Brands are the sole producers of a quadruple-decker chicken and hamburger sandwich. The two firms

currently charge the same price for their products. If neither firm reduces the price of its quadruple-decker chicken and hamburger sandwich, each firm earns $40 million in profit. If both firms reduce their prices, then each firm will earn $9 million in profit. If one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $70 million while the other firm will earn a profit of $2 million.
Assuming that collusion is not a possibility, the Nash equilibrium occurs when
Business
1 answer:
tino4ka555 [31]3 years ago
6 0

Answer:

Both companies will reduce their prices.

Explanation:

Given that collusion is not possible between McDonald's and Yum, both companies will try to earn more money by reducing their prices and increasing their profits to $70 million. They will do this hoping that the other firm doesn't modify its pricing strategy.

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the sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market. b.
zepelin [54]

Answer:

a. The sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market.

Explanation:

In some cases we find dumpers in the an economic environment. There main objective is drive out competitors since they cannot sell below normal selling price.

The sale of good by the foreign supplier in another country below the normal price would create a monopolistic situation as they will be able to control the price and quality of the product.

For example, 10KG of wheat are sold normally for $5 locally in Country A by a supplier firm and are sold the same amount in Country B.

Then the supplier firm from Country A exports to Country B and decides to sell its 10KG of wheat for $2 in the foreign country. This action is called dumping or price dumping.

6 0
4 years ago
Kroger, a grocery store chain, sells thousands of products from hundreds of different producers that are shipped through a varie
satela [25.4K]

Channel of distribution is the set path through which the goods are transferred from one place to another. This route can be direct or indirect is solely decided by the company to deliver the goods to the end consumers safely.

The big bulk should be broken down into different assortments so as to ease the movement of products from one place to another.  The description of the products should be given clearly, place, time, quantity, etc. Information should be disseminated clearly without any errors.  

8 0
3 years ago
Read 2 more answers
Rapidly increasing health costs have been a major political concern since at least 1992. Suppose the government sets the maximum
lara31 [8.8K]

Answer:

Option "D" is the correct answer to the following statement.

Explanation:

Once a government imposes a legal maximum limit on the cost of a service, it is called maximum price .

In this situation, there will be more individuals wanting to visit the Medical Professional but fewer Medical professionals willing to see patients at Government's maximum price.

Doctors want to earn as per market price, but patients want to pay the fee as government settled price.

8 0
3 years ago
Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad debts increased by $10
anyanavicka [17]

Answer:

$229,500

Explanation:

For computing the company’s current income tax expense or benefit, first we have to compute the taxable income which is shown below:

= Pre-tax book income + Increase in bad debt reserve - Excess tax depreciation + Excess tax gain over book gain - Tax-exempt life insurance proceeds

= $10,000,000 + $100,000 - $200,000 + $25,000 - $250,000

= $675,000

We assume the tax rate is 34%

So, the current income tax expense or benefit would be

= $675,000 × 34%

= $229,500

The Excess tax gain over book gain is computed below:

= $75,000 - $50,000

= $25,000

7 0
3 years ago
What does a credit score provide to lenders?
Tresset [83]

Answer:

I believe the answer is credit history, please let me know if I am wrong.

Explanation:

"'A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they give a person a loan or a credit card.'' Your personal credit score is built on your credit history.'' Your FICO® Score☉ ranges from 300 to 850."

3 0
3 years ago
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