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uranmaximum [27]
3 years ago
7

To advertise or not to advertise Suppose that Creamland and Dairy King are the only two firms that sell ice cream. The following

payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises:
Dairy King
Advertise Doesn't Advertise
Creamland Advertise 10,10 18, 2
Doesn't Advertise 2,18 11,11

For example, the upper right cell shows that if Creamland advertises and Dairy King doesn't advertise, Creamland will make a profit of $18 million, and Dairy King will make a profit of $2 million. Assume this is a simultaneous game and that Creamland and Dairy King are both profit-maximizing firms.

a. If Creamland decides to advertise, it will earn a profit of $ _______ million if Dairy King advertises and a profit of $_______ million if Dairy King not advertise.
b. If Creamland decides not to advertise, it will earn a profit of________ million if Dairy King advertises and a profit of______ $ million if Dairy King does not advertise.


Suppose that both firms start off not advertising. If the firms act independently, what strategies will they end up choosing?

a. Creamland will choose not to advertise and Dairy King will choose to advertise.
b. Both firms will choose not to advertise.
c. Both firms will choose to advertise.
d. Creamland will choose to advertise and Dairy King will choose not to advertise.

Again, suppose that both firms start off not advertising. If the firms decide to collude, what strategies will they end up choosing?

a. Both firms will choose to advertise.
b. Both firms will choose not to advertise.
c. Creamland will choose to advertise and Dairy King will choose not to advertise.
d. Creamland will choose not to advertise and Dairy King will choose to advertise.
Business
1 answer:
Drupady [299]3 years ago
4 0

Answer:

A. 10 , 18

B. 2 , 11

c. Both firms will choose to advertise.

b. Both firms will choose not to advertise.

Explanation:

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Dmitry [639]

Answer:

0.087  = 8.7%

Explanation:

Present value of perpetuity given that payment is done at the end of N-year

= present value * ( 1 + i )^n-1

= 169 * ( 1 + i )^n-1  = 100 / i

∴ ( 1 + i )^n-1 = 100 / 169i  ------- ( 1 )

Given that first payment at the end of N years = 2112.50 hence the present value of 2112.50

= 2112.50( 1 + i )^n-1  = 100 / i  + 100/ i^2 --- ( 2 )

(given that the increment is with a difference of 100 ) and N-1 = number of years

next step : Input equation 1 into equation 2

2112.50 i^2 = 169i [ 100i + 100 ]

19350 i^2 = 16900i

∴ i = 16900 / 19350 = 0.086956 ≈ 0.087

5 0
2 years ago
Which of the following is not a step in the strategic training and development process?a. determining strategic initiatives base
Ronch [10]

Answer:

a. determining strategic initiatives based on business strategy translating initiatives into concrete learning activities facilitating

Explanation:

  • The strategic training and the development is a similar to the strategy planning process and in general identification of the needs and evaluation of the alternative and incentives and the assigning the right audience and implementation
3 0
3 years ago
Prepare a statement of cash flows for MED Corporation. (Enter your answers in thousands. Amounts to be deducted should be indica
Allushta [10]

Answer:

Explanation:

Question

Prepare a statement of cash flows for MED Corporation. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Cash flow from Operating Activities $ Cash flow from Investing Activities $ Cash flow from Financing Activities $ Net Change in Cash and marketable securities $

4 0
3 years ago
Preet just learned that he is going to be reassigned for his job to Eastern Europe. The transfer is temporary. Because Preet kno
Bogdan [553]

Answer:

durable power of attorney.

Explanation:

A durable power of attorney is the most vital document that anyone can have in place in the situation where they are not able to care for themselves. It acted as the permission slip in which the authority is given to the third party to do the things on behaf of the other person who cant do that

So as per the given situation, the above should be the answer

5 0
3 years ago
The common stock of Royal Ranch House is selling for $18.11. The firm pays dividends that are expected to grow at a rate of 5.30
IrinaVladis [17]

The estimate of the price of Royal Ranch House stock at the end of the fifth year will be $23.45.

  • Current price of the common stock = $18.11
  • Growth rate = 5.30%
  • Time = 5 years.

Therefore, the estimate the price of Royal Ranch House stock by the fifth year will be:

= Current price × (1 + 5.30%)⁵

= $18.11 × (1 + 0.053)⁵

= $23.45

Therefore, the correct option is $23.45.

Read related link on:

brainly.com/question/25528715

5 0
2 years ago
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