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stepladder [879]
3 years ago
11

In a duopoly game we observe the following payouts: if the two firms collude they will each earn $50,000. If one firm cheats the

n he earns $60,000 and the other firm earns -$10,000. If both firms cheat then they each earn zero economic profit. In this game what is the Nash equilibrium?
Business
1 answer:
OLEGan [10]3 years ago
7 0

Answer:

the Nash equilibrium for both players is to collude

Explanation:

A duopoly is when there are two firms operating in an industry.

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

 the Nash equilibrium for both players is to collude because it is the best outcome for both players. if, a player cheats, there is a chance that the other player would cheat and both firms would end up earning a zero economic profit

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_________ payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss be
geniusboy [140]

Answer:

a. Single

b. Compounding

Explanation:

Lump sums refers to a single payment that is made to a person or an organisation at a specified time. This is different from installment payment that is made as a number of smaller payments over a specified period of time.

Compounding refers to a method of reinvesting earnings or profits from assets or investment with aim of generating extra earnings over time.

Compounding is the foundation of Future Value  (FV) as it considers the present value (PV) of an asset, the total number of years, how frequent the compounding takes place in a year, and the annual interest rate as given in the formula in the question which represented as follows:

FV = PV(1 + I)^N

Where;

FV = Future Value

PV = Present Value

I = annual interest rate

N = number of years

Therefore, single payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss below.

Finding the future value (FV), or compounding, is the process of going from today's values to future amounts.

8 0
3 years ago
Oriole Company has the following budgeted sales: January $210000, February $260000, and March $220000. 40% of the sales are for
statuscvo [17]

Answer: The total expected cash receipts during March is $232000.

Explanation:

Given that,

Budgeted sales in January = $210000

Budgeted sales in February = $260000

Budgeted sales in March = $220000

40% of sales are for cash and rest 60% are on credit

Total cash receipts during march = cash sales in the month of march + Credit sales in the month of February + Credit sales in the month of march

= 40% of 220000 + 260000 × 60% × 50% + 220000 × 60% × 50%

= 88000+78000+66000

= $232000

Therefore, the total expected cash receipts during March is $232000.

6 0
3 years ago
Corporation produces a semiconductor chip used on communications. The direct materials are added at the start of the production
iren2701 [21]

Answer:

Equivalents Units Of Production   Materials=  475,000  

Conversion Costs 450,000    

Cost of Completed Units =$ 5138250

Cost of Units in the Ending Inventory           $ 604,500

Explanation:

Direct materials costs of $ 935,750

Conversion costs of $ 4,554,000

Total Manufacturing Costs  $ 5489,750

                           Units                 % of Completion                EUP

                                                D.M         C.C                   D.M         C.C

         

Units completed 425,000     100           100              425,000      425,000

Ending Inventory  50,000      100           50                50,000        25000

Total Units Of Production                                        475,000        450,000                

Direct Materials= $ 935,750/ 475000= $ 1.97

Conversion Costs = $ 4,554,000/ 450,000= $ 10.12

Cost of Completed Units =$ 5138250

Direct Materials = 425,000 * 1.97= $ 837250

Conversion Costs = 425,000 *10.12= $ 4301,000

Total Cost of Manufacturing Units= $ 5138250

Cost of Units in the Ending Inventory           $ 604,500    

Direct Materials = 50,000 * 1.97= $ 98,500

Conversion Costs = 50,000 * 10.12= 506000

Total Costs                  $ 604,500              

7 0
3 years ago
$1500 for supplies to sell at a football game. Total receipts for the venue was $3,700. What were her expenses as a percentage o
topjm [15]

Answer:

        \large\boxed{\large\boxed{41\%}}

Explanation:

You need to assume that the total <em>expenses</em> were equal to the<em> cost of the supplies</em>, i.e. there were not other expenses but the<em> $1,500 for supplies to sell.</em>

The total income or revenue was <em>$3,700</em>.

The <em>percentage of the expenses to the revenue</em> is:

        Percentage=\dfrac{expenses}{revenue}\times 100\\\\\\ Percentage=\dfrac{\$1,500}{\$3,700}\times 100=40.5\%\approx41\%

4 0
3 years ago
Rhombus corp. is a rapidly growing company that just experienced a very profitable quarter. the company's board of directors has
marissa [1.9K]
<span>This shows that the board has decided to re-invest the profits in the business instead of paying it to common shareholders. This is one of the drawbacks of owning common stock in comparison to preferred stock. Dividends and other company earnings are not always shared with the stockholder.</span>
3 0
3 years ago
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