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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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Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald's with millions of pounds of chic
garik1379 [7]

Answer:

industrial

Explanation:

Generally companies can focus on producing goods and services for final consumers (B2C market), for other businesses (B2B market) or for the different government levels (public contracts).

In this case, Keystone Foods focuses on business-to-business (B2B) markets since it provides intermediate goods to other companies that later processes them into final goods that are purchased by final consumers.

5 0
3 years ago
Catering Corp. reported free cash flows for 2008 of $8.14 million and investment in operating capital of $2.14 million. Catering
Neko [114]

Answer:

Catering's 2008 EBIT is $11.47 million

Explanation:

Operating cash flow = EBIT + Depreciation – Taxes

Also the same as EBIT = Operating cash flow - Depreciation + Taxes

When Operating cash flow = Free cash flows + Investment in operating capital

OCF = $8.14 million + $2.14 m illion

Operating cash flow = 10.28 million

EBIT = Operating cash flow - Depreciation + Taxes  

EBIT = 10.28 million - 0.95 million + 2.1 4 million

EBIT = $11.47 million

Catering's 2008 EBIT is $11.47 million

6 0
3 years ago
On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0
Aneli [31]

Answer:

Accumulated depreciation= $276,000

Explanation:

Giving the following information:

On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.

Depreciable value= 700,000 - 10,000= 690,000

Straight-line depreciation= 690,000/5= $138,000

Accumulated depreciation= 138,000*2= $276,000

5 0
3 years ago
4. Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particul
bezimeni [28]

Answer:

Tom Busby

His annual payment will be:

= $4,091.64

Explanation:

a) Data:

Loan = $20,000

Interest on loan for 4 years = 8% per annum

Amount of loan after 4 years = $27,200 ($20,000 * 1.360)

Payment period = 12 years

Interest rate during payment period = 11%

b) From online finance calculator:

You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.

Monthly Payment $340.97

Annual Payment  $4,091.64

Time Required to Clear Debt 12.00 years

Total of 144 or 12 Payments = $49,099.25

Total Interest $21,899.25

8 0
3 years ago
A company acquired an office building on three acres of land for a lump-sum price of $2,450,000. The building was completely equ
galina1969 [7]

Answer:

$735,000

Explanation:

The fair values of the assets may be used as a basis for determining the amount to be recorded for each of the assets.

This will be in a proportional manner such that the higher the fair value, the higher the actual cost assigned and vice versa to the asset.

Hence the amount to be recorded for the building

= 840,000 / (840,000 + 840,000 + 1,120,000) * $2,450,000

= $735,000

7 0
3 years ago
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