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kodGreya [7K]
3 years ago
12

Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell Blu-ray players: Movietoni

a and Videotech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its players.
Videotech Pricing
High Low
Movietonia Pricing High 11, 11 2, 15
Low 15, 2 8, 8
For example, the lower-left cell shows that if Movietonia prices low and Videotech prices high, Movietonia will earn a profit of $15 million and Videotech will earn a profit of $3 million. Assume this is a simultaneous game and that Movietonia and Videotech are both profit-maximizing firms.
1. If the firms do not collude, what strategies will they end up choosing?
2. The game between Movietonia and Videotech is an example of the prisoners' dilemma.
a. true
b. false
Business
1 answer:
Marina CMI [18]3 years ago
4 0

Answer:

pricing low

yes

Explanation:

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.

if either firm charges high, they either earn 11 million or 2 million.

if either firm charges low, it would earn either 15 million or 8 million.

because the payoffs of charging low is higher than the payoffs of charging high, the best strategy is for the firms to charge low if there is no cooperation.

the game is a prisoners dilemma because the choice the firms make isn't the choice that will yield the highest payoffs. the choice that would yield the highest payoffs is to both charge high prices.

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Answer:

Option B is correct.

Effective annual return

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Robert invested in stock and received a positive return over a 9-month period then the effective annual return  will be the greatest.

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Goods are typically tangible while ____ are typically intangible
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Park & Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The
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Answer:

a) $14,600.

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The computation of the company total assets are shown below:

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= $6,200 + $3,200 - $2,120

= $7,280

And, the other item values would remain the same

Now put these values to the above formula  

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4 0
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Strategic management is about formulating strategies that align an organizations internal capabilities with external opportuniti
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Explanation:

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On the contrary, the Responsive Business Model does not depend on forecasts, but ensure that what to be done are adequately planned and information among firms in the supply chain are properly exchanged. This makes the model not to be risky and ensure doing more than what has already been planned is avoided. Therefore, the aim of the responsive model which also known as Pull Model is to eliminate reliance on forecast.  

The major reason the Responsive Model has become popular in supply chain collaborations is that it allows for the customization of products on smaller orders by customers.  However, the Anticipatory Model does not give customers any choice or power but to buy or not buy.

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