What are three important skills for teamwork and collaboration?

Two firms, A and B, must each choose either a low price or a high price for their product. The payoff matrix shows the profit

ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0

2 years ago

Which type of question best fits the purpose of an interview

Elena L [17]

I think the answer would be a background question.

I hope that helped :)

3 1

2 years ago

Read 2 more answers

The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of the following best describes

Leokris [45]

Answer:

1. Equity is the difference between the company's assets and liabilities.

2. D. $83

Explanation:

Req. A

We know,

The accounting equation is

Total asset = total liabilities + total stockholders' equity

Therefore, total asset - total liabilities = total stockholders' equity

So, we can say that equity is the difference between the company's assets and liabilities. However, equity cannot be claimed before the liabilities. Therefore, the option "A" is the correct answer.

Req. B

Now Inc.

Statement of retained earnings

For the year ended, December 31, 20XX

Beginning retained earnings (Last year) $527

Add: Net Income (Current year) 176

Less: Dividend (Balancing) <u> </u><u>(83)</u>

Ending retained earning (Current year) $620

Calculation: $(527 + 176 - 620) = $83

Therefore, the option "D" is the correct answer.

3 0

2 years ago

True or false 1. Satisfying customer wants at a reasonable price is important to business success.

Marina CMI [18]

This is a mixture of both. You may lose a customer if you don't but most likely you will still have enough to keep moving forward with your career so I would say False

5 0

2 years ago

A 20-year-old student wants to save $5 a day for her retirement. Every day she places $5 in a drawer. At the end of each year, s

ollegr [7]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

At the end of each year, she invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. She will invest for 45 years.

A) We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1825[(1.08^45)-1]}/0.08= $705,372.75

B) n= 25

FV= {1825[(1.08^25)-1]}/0.08= $133,418.34

C) FV= 705,372.75 A=?

We need to isolate A:

A= (FV*i)/{[(1+i)^n]-1}

A=(705,372.75*0.08)/[(1.08^25)-1]

A= $9,648.64

7 0

3 years ago