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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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After customer service representatives are trained, their phone calls are monitored to determine if the CSRs are applying the le
Grace [21]

Answer:

Behavior

Explanation:

The era has been changed most of the customer is shopping online and if they are found defective in the product, the customer always dials a customer care number by resolving their problem.  

For example a customer buys a laptop online and after a few days, customers found hanging issues. Customers will dial a customer care number of that particular brand and get helped from them.

Why the customer is found helped? The simple reason that the executive who represents the brand learns lessons and get trained for behavior and the knowledge of that product from the company. The customer looks behavior of the executive and from this, the customer builds a relationship with a brand.

On the other hand, the calls are being monitored for quality and training purposes.

8 0
4 years ago
During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasur
Anton [14]

Answer:

c. $2,000

Explanation:

total loss claim = business auto loss + stock investment loss

                         = $1,000 + $1,000

                         = $2,000

Therefore, The Kim may claim $2,000 of these losses.

3 0
3 years ago
The markdown could be a dollar amount or a
BabaBlast [244]

Answer:

Percentage of the selling price

Explanation:

Markdown refers to a reduction in the regular selling price of an item. When a trader wants to clear some old inventory or in a sales promotion, they may reduce the regular price to attract more customers. The rate at which the price has been reduced in the markdown.

Markdown can be given in dollar amount. The seller indicates the amount of money that has been knocked off the price. Markdown can also be expressed as a percentage of the regular selling price. In such a case, the new price after the markdown has to be calculated.

4 0
3 years ago
Economic models are typically based on the principle that people behave rationally. However, people do not always behave rationa
BartSMP [9]

Answer:

<em>because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.</em>

Explanation:

The rational economic model is even more widely used in economics because it is easier to measure. Although people have irrational behaviors, they are more subjective, which makes the rational model still the most used by the economy, because through it is possible to measure behavior patterns, statistical data and information relevant to the economy.

3 0
4 years ago
Given the future value, which of the following will contribute to a lower present value? A. Higher discount rate B. Fewer time p
Natali5045456 [20]

Answer:

D

Explanation:

7 0
4 years ago
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