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hammer [34]
3 years ago
11

Two identical firms that share a market and produce a homogenous good will find the Bertrand Oligopoly LEAST attractive because

_____________
Business
1 answer:
inn [45]3 years ago
3 0

Answer:

The correct answer that fills the gap is: Cartels generate the highest joint profit, they want to avoid a price war that leads to profit erosion and P=MC, a cournot oligopoly will generate more profit than a bertrand oligopoly

Explanation:

In Bertrand's model, consumers will buy the goods of the company that offers the lowest price. From this it can be intuited that the Nash equilibrium will be the one in which both companies set the same price. For this reason it is not attractive, since they are competition and for some of the two it may not be profitable to decrease the sale price of their products.

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8 0
2 years ago
With respect to the consumer buying process, __________ is perhaps the most important factor that affects the time, effort, and
kupik [55]

Answer:

The Degree of Risk

Explanation:

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3 years ago
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3 years ago
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You Just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for com
kow [346]

Answer:

The correct answer is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3

Explanation:

Solution

Given that:

A price was wan by you today at =$800

For the next three years =$500 a year

Now

We compute for the present value of today at 6%

Thus

Present value (PV) = $800 + $500/1.06 + $500/1.062 + $500/1.063

Because $800 is receivable today, its present value is equal to $800,

So,

500 receivable after a year will be divided by 1.06

PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3

Therefore the right formula for computing the present value as of today at 6 percent is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3

4 0
3 years ago
The _________ is the rate of return a firm must earn on its investments in projects in order to
Vadim26 [7]

Answer:

olbs

Explanation:

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