1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Suppose the rate of return on a 10-year T-bond is currently 5.00% and that on a 10-year Treasury Inflation Protected Security (T
MAXImum [283]
I am sorry but I do not know or understand this one at all but I think it’s 10
4 0
3 years ago
An economy produces only apples and oranges. The base year is 2012, and the table gives the quantities produced and the prices
Mashutka [201]
Iuuu is bigger then her
6 0
2 years ago
Water that can be reused without purification for watering your yard and can help reduce overall water usage is called _________
Paraphin [41]

The answer is “gray water”. Gray water is defined as the wastewater from showers and sinks, gray water can be used to water your yards. Gray water does not need purification to water your yard, it can even help in reducing one’s overall water usage at home.

8 0
3 years ago
MCQS
dlinn [17]

Answer:

MCQS

(i) Compensation of employees includes ________.

(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans .

(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------

(a) Net Factor Income from Abroad .

(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is

(c) 1030 .

(iv) What of the following does NOT enter GDP?

(c) Life Expectancy.

(v) The sum of all kinds of income received by the individuals from all sources is called---------

(a) Personal Income.

Explanation:

1) Employee Compensation includes the salaries, wages, benefits, and other incentives paid to employees in exchange for their services to the company.

3) The Net factor income from abroad is the difference between the factor income earned from abroad by normal US residents and the factor income earned by non-residents (foreigners) in the US domestic territory.

4) The real GDP is the gross domestic product adjusted for the effect of inflation on prices.  The real GDP for year 2 should be based on the prices of year 1 and is calculated as follows (110 * 5 + 80 * 6 = 1030).

5) Personal income is the sum of all kinds of income received by the individuals from all sources.  It is used in the calculation of the US GDP.  It is a subset of private income.  Private income, which is broader than personal income, consists of personal income, profit tax, and undistributed profit.

6 0
3 years ago
Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the
Ulleksa [173]

Answer:

The cost recorded for the equipment=$229,550

Explanation:

The total recorded cost of the automatic equipment has to include the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;

T=P+A

where;

T=total cost

P=purchase cost/invoice cost

A=additional costs(electrical work cost+delivery cost+sales tax+repair cost)

In our case;

T=unknown

P=$190,000

A=(20,000+4,000+13,700+1,850)=$39,550

replacing;

T=190,000+39,550=229,550

The total cost=$229,550

The cost recorded for the equipment=$229,550

7 0
3 years ago
Other questions:
  • One of the reasons ace distributors, a local manufacturing company, is considered a good place to work is that the managers enco
    5·1 answer
  • The following are characteristics of the __________ certification: Only law enforcement personnel and government employees worki
    6·1 answer
  • Lake City Plastics currently produces plastic plates and silverware. The company is considering expanding its product offerings
    15·1 answer
  • In your opinion how have human rights changed from the industrial revolution till the modern economy of today
    9·1 answer
  • For the year ended December 31, Depot Max's cost of merchandise sold was $56,900. Inventory at the beginning of the year was $6,
    10·1 answer
  • I wanna to know answers for this questions
    11·2 answers
  • What did the economist A.C. Pigou think the relationship was between advertising and monopolistic competition? A.C. Pigou though
    8·1 answer
  • In order to find the future worth, F, from a present amount, P, 5 years from now at an interest rate of 6 % per year, compounded
    6·1 answer
  • Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT INPUT 49,200 cages Production time 630
    10·1 answer
  • Tony, the human resources manager for TopShelf Beverages, is confidentially working with line managers to lay off a significant
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!