Answer:
d. neither will advertise.
Explanation:
A game theory is used to analyse the choices of firms in an oligopoly.
A collusion is when two or more firms come together to make a decision usually concerning price.
If both firms advertise, the profit is less than when both firms don't advertise. Therefore, if both firms collude, they would agree not to advertise in order to maximise profits.
But the Nash equilibrium would be for each firm to advertise.
Nash equilibrium is the best strategy for a player in a game regardless of what the other player plays.
I hope my answer helps you.
Answer:
Price Elasticity of 'Broadband Access Capacity' Demand (for firms) = 0.38
Explanation:
Price Elasticity of demand = % change in demand / % change in price
% change in demand = 3.8% ; % change in price = 10% [Given]
Putting in above formula ; P.Ed = 3.8 / 10 = 0.38
Answer:
Net income: Understated
Total assets: Understated
Total liabilities: No effect
Total stockholders' equity: No Impact
Explanation:
Net income will be understated, because, revenue was not accrued.
Total assets will also be understated, because accrued revenue is not recorded in the current assets, thus total assets will be lowered in total.
