Answer:
Joint profits are maximized when Carnival picks $260 and Royal Caribbean picks <u>$260</u>.
Explanation:
Royal Caribbean
high price low price
$9,000 / $14,720 /
high price $9,000 $1,620
Carnival
low price $1,620 / <u>$8,320</u> /
$14,720 <u>$8,320</u>
Carnival's dominant strategy is to charge a low price ($260) because it yields the highest profits = $14,720 + $8,320 = $23,040.
Royal Caribbean's dominant strategy is to charge a low price ($260) because it yields the highest profits = $14,720 + $8,320 = $23,040.
Since both companies have the same dominant strategy, a Nash equilibrium exists when they both charge a low price ($260).
Answer:
True
Explanation:
Equivalent Unit Production is solved in two ways. Either by adding beginning inventory and units started or by adding finished goods and ending inventory.
If we add finished goods and ending inventory we get
Finished Goods units 12000
Ending Inventory units 4000(75%)= 3000
Equivalent Units 15000
which is true .
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Hope this helps.
Answer:
So there should be 70 units must be sold for maximum revenue and maximum revenue will be 1225
Explanation:
We have given that the total revenue for an time is given by 
Now for maximum revenue
must be zero

So 
x = 70
Now maximum revenue will occur at x= 70
So maximum revenue =
So there should be 70 units must be sold for maximum revenue and maximum revenue will be 1225