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gtnhenbr [62]
3 years ago
8

Consider the Hotelling model of the competition between two firms discussed in class. Select ALL that apply.

Business
1 answer:
rewona [7]3 years ago
7 0

Answer: The corrects answers are: "a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position.", "c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers." and "d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line.".

Explanation: According to the Hotelling model of the competition between two firms:

a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position. - If this were the case, it would be indifferent for customers to go to either.

c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers. - This happens because each consumer will go to the nearest one.

d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. - This happens because the strategy chosen is not suitable for either company.

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Option A. A climate of caring will pervade.

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3 years ago
Which type of organization expects important decisions to be made by top-level managers?
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Answer:

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The skillful supply chain manager declared she would not only disaggregate cycle inventory, but she would also aggregate safety
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Answer:

a. high value and high demand.

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Since the skillful supply chain manager declared she would not only disaggregate cycle inventory, but she would also aggregate safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory and fast mode when using safety inventory for her product that had high value and high demand.

Generally, when dealing with the transportation of goods that has high value and high demand, it is necessary and important that manufacturers or suppliers use the fast mode in order to meet up with their consumer's increasing demand. Simply stated, an increase in the demand for goods and services should be met with an increased supply, so as to reach equilibrium.

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