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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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It is a business venture by two or more people​
BlackZzzverrR [31]

Answer:

A joint venture (JV) is not a partnership. That term is reserved for a single business entity that is formed by two or more people. Joint ventures join two or more different entities into a new one, which may or may not be a partnership.

Hope it helps

7 0
2 years ago
Debt is generally the least expensive source of capital. This is primarily due to ________. debts fixed interest payments and fi
drek231 [11]

Answer: Debt being less risky than equity and interest payments being tax deductible.

Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.

Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense  while computing taxable income .

6 0
3 years ago
Which of the following can help a business monitor quantitative business factors?
Georgia [21]

This system can help a business monitor quantitative business factors

Inventory and transaction systems

Explanation:

The Inventory and transaction systems are usually there to report on the tangible benefits of the transaction that are being made and the commerce that is happening for the business over all.

These inventories are thus to be deigned and computed in the manner that would best align with the interest of the company and the firm that is needed for the quantitative business.

Quantitatively, one would need substantial data and this can provide it well.

3 0
3 years ago
The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on bot
oksian1 [2.3K]

Answer:

A

Explanation:

The privately-owned school system in Smalltown generates  positive externality to members of SmalltownA good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.

The free rider has caused a decline in revenues and did not cause the private market to undersupply education to the community

6 0
3 years ago
Amounts withheld from each employee for social security and medicare vary by state.
satela [25.4K]

It is False.

No matter which states the employee lives, the amounts withheld from each employee for social security and medicare do not vary by state. The present tax rate for social security for employers and employees is 6.2% and the present current rate of medicare is 1.45% for both the employer and employee.

Employers are typically required to withhold Social Security and Medicare taxes from an employee's paycheck and pay the employer's share of those taxes.

The Social Security Tax and the Medicare Tax have different rates, and only the Social Security tax has a salary cap. The base salary ceiling is the maximum taxable salary in the year. Determine the withholding amount for Social Security and Medicare contributions by multiplying each payment by the employee's tax rate.

To learn more about social security and medicare from given link

brainly.com/question/19277833

#SPJ4

3 0
2 years ago
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