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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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Option B (are protected by their three-day rescission rights under Regulation Z) is correct

Explanation:

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The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally
Ipatiy [6.2K]

Answer:

a. What is the book value of the​ equipment?

  • $86,976

b. If Jones sells the equipment today for $184,000 and its tax rate is 35%​, what is the​ after-tax cash flow from selling​ it?

  • ($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60

c. Just before it is about to sell the​ equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if​ so, what is​ it?

  • the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.

Explanation:

MACRS depreciation rate:

Year             %              Depreciation expense             Carrying value

1                   20%            $60,400                                  $241,600

2                  32%            $96,640                                  $144,960

3                  19.20%        $57,984                                  $86,976

4                  11.52%         $34,790.40                             $52,185.60

5                  11.52%         $34,790.40                             $17,395.20

6                  5.76%          $17,395.20                              $0

5 0
3 years ago
Number of WorkersUnits of Output 00 110 290 3126 4150 5165 6180Refer to above data. Diminishing marginal returns become evident
kakasveta [241]

Answer:

The answer is "The third worker".

Explanation:

Please find the correct question in the attachment file.

\text{Number of Workers}      \ Units \ of \ Out-put          \text{marginal Product}\\\\      1\ \ \ \ \ \ \ \ \ \ \ \ \ \   40\ \ \ \ \ \ \ \ \ \ \ \  \ \  40  \\\\2 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 90 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 50\\\\  3 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 126 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 36\\\\  4 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 150\ \ \ \ \ \ \ \ \ \ \ \  \ \ 24\\\\  5 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 165 \ \ \ \ \ \ \ \ \ \ \ \  \ \ 15\\\\  6\ \ \ \ \ \ \ \ \ \ \ \  \ \ 180\ \ \ \ \ \ \ \ \ \ \ \  \ \ 15

from 50 units down to 36 units.

3 0
3 years ago
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