Answer:
D. Krispy Kreme and Dunkin' Donuts will both choose a price of $0.85.
Explanation:
DD - Dunkin' Donuts
KK - Krispy Kreme
If DD choose price to be $1.25, KK will choose price to be $0.85 because it gives them profit of $975 among $850 / $975
If DD choose price to be $0.85, KK will choose price to be $0.85 because it gives them profit of $650 among $250 / $650
Thus, KK have a dominant strategy to choose price = $0.85 no matter what DD choose.
If KK choose price to be $1.25, DD will choose price to be $0.85 because it gives them profit of $975 among $850 / $975
If KK choose price to be $0.85, DD will choose price to be $0.85 because it gives them profit of $650 among $250 / $650
Thus, DD have a dominant strategy to choose price = $0.85 no matter what KK choose.
Both firms have a dominant strategy of choosing price = $0.85 which creates a Nash equilibrium.
Answer:
Option D Ernie should hire temporary employees because he can let them go once the holiday season is over.
Explanation:
Option D. The reason is that this option possesses the least risk that the company will loose money and with higher return opportunity associated with it that it make money during the holiday season.
Option A. If company hires permanent workers then the company will have to pay them irrespective of the production so their is a higher risk with a greater return opportunity to meet demands.
Option B. Remember that the money doesn't keeps the employee motivated for a long duration. It objects the employee to leave the company because the employee is a key resource to the organization. So productivity cannot increase significantly to meet demand by increasing pay and the company will have to pay the remaining months the same pay which is meaningless to loose money instead of making money.
Option C is totally incorrect because if the company keeps its store closed it is making fewer sales and giving an edge to build relation with its existing customers . So again its risky proposal.
Option E is also incorrect because setting high prices without any differentiation in the product will result in fewer sales target achievements. So it is again riskier proposal.
Answer: The correct answer is "(B) Amputation procedures for diabetes sufferers".
The price elasticity of demand measures the degree of response of the quantity demanded of a good, given the change in the price of that good.
The demand for a good or service is less elastic when, given a change in the price, the demand varies in a smaller amount and the demand for a good or service is more elastic when, before a change in the price, the demand varies by greater or equal. Quantity than the price.
Between a diamond necklace and amputation procedures for patients with diabetes it is clear that the demand for amputation procedures for patients with diabetes is less elastic than that of a diamond necklace, since being a consequence of a disease and being treated of the health of the people the demand varies little or very little before a change in the price. On the other hand, a diamond necklace is a luxurious asset, which is not of extreme necessity for people.
The answer is D. Neither A or B
Answer:
The answer to this question is B. It can modify its Web site according to the foreign countries' cultures.
Explanation:
A business environment is all internal and external factor that is capable of influencing organisations decision. While internal environment are mostly within the business itself, external factors are from without which means the business has little or no control
For organisations to succeed in a foreign market, it is required to deal with large society and cultural differences that is practiced in that country.
social - cultural factor is one of the external factors that can influence a business decision from without in the environment in which it operates.
The social cultural factors which includes belief, norms and customs of the people in that environment are what the business should adhere to in other to succeed in such country.
Therefore, modifying its web site according to the foreign country's culture is a step to achieve what has been explained above.
Hence the answer to this question is B It can modify its Web site according to the foreign countries' cultures.
