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Pie
2 years ago
11

Consider the following information for a simultaneous move game: If you charge a low price (LP) and your rival charges a LP, you

each earn $5 million in profits. If both charge a high price (HP), each will each earn $10 million in profits. However, if one charge a LP and the other does not, the firm that charges a LP will earn $15 million and the other firm will earn $1 million. ​ What is the Nash equilibrium of the game? a. ​Each firm charges a LP b. ​Each firm charges a HP c. ​You charge a LP and your rival charges a HP d. ​None of the above.
Business
1 answer:
Sati [7]2 years ago
5 0

Answer: B. Each firm Charges a HP

Explanation:

Nash Equilibrium is a point where there is no incentive from deviating for each firm to deviate or change its strategy.

Firms reach Nash Equilibrium Point when they both charge high price (HP). When both firms charge high price (HP) each firm will earn 10 million dollars at this point there is no incentive for either firm to change and charge lower price because they will earn $ 1 million. Each firm will just choose to charge high price regardless of what the other firm is doing.

 

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A 60,000 square meter rectangular yard is to be enclosed on three sides by wood fencing that costs $25.00 per meter and on the f
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Answer:

C'(y) = 50 -\frac{3900000}{y^2}=0

And we can solve for y and we got:

y = \sqrt{\frac{3900000}{50}}= 279.285

And using condition (1) we can solve for x and we got:

x= \frac{60000}{279.285}= 214.834

So then the minimum cost for this case would be:

C = 50*279.285 + 65*214.834 = 27928.49

Explanation:

For this case the graph attached illustrate the problem for this case

We know that the total area is 60000, so then we have:

xy = 60000

If we solve for x we got:

x = \frac{60000}{y}  (1)

Now we can define the cost function like this:

C = 2*(25)*y + 25 x +40 x

C(x,y) = 50 y + 65 x

We can use the condition (1) and if we replace in the cost function we have:

C(y) = 50 y + 65(\frac{60000}{y})

Since we need to minimize the cost, we can derivate the function in terms of y and we got:

C'(y) = 50 -\frac{3900000}{y^2}=0

And we can solve for y and we got:

y = \sqrt{\frac{3900000}{50}}= 279.285

And using condition (1) we can solve for x and we got:

x= \frac{60000}{279.285}= 214.834

So then the minimum cost for this case would be:

C = 50*279.285 + 65*214.834 = 27928.49

7 0
3 years ago
Smidt Corporation has provided the following data for its two most recent years of operation: The unit product cost under absorp
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Answer:

The solution to this issue can be defined as follows:  

Explanation:

Please find the complete question in the attachment file.  

Direct Substances 9  

Direct jobs 5  

Overhead output variable 5  

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The Unit cost of the item at absorption cost per year 1 = (9+5+5+14)=33

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Answer:

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3 years ago
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Union members earn "about 20% more" than non-union members, even after adjusting for factors such as "years of work experience and education level.".

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Labour union members can bargain with employers about pay, benefits, workplace health and safety, job training, and other work-related problems from a position of power through their union.

Employee involvement in corporate decision-making through representative organisations is known as non-union employee representation.

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