1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
malfutka [58]
3 years ago
8

Two oligopolists have to decide on their pricing strategy. Each can choose either a high or a low price. If they both choose a h

igh​ price, each will make​ $12 million, but if they both choose a low​ price, each will make only​ $8 million. If one sets a high price and the other a low​ one, the​ low-priced firm will make​ $16 million, but the​ high-priced firm will make only​ $4 million.
In the absence of​ collusion, each will _________.
Business
1 answer:
yulyashka [42]3 years ago
5 0

Answer:

<h2>Considering absence of collusion,the firms will choose low price in this instance.</h2>

Explanation:

  • First,focusing on all the possible payoffs for the firms under low price situation, the possible individual payoffs for the firms are $8 million and $16 million considering that the other firm chooses low price and high price respectively.
  • Now, regarding the individual payoffs from choosing high price, the possible payoffs for the firms are $12 million and $4 million, considering that the other firm chooses high price and low price respectively.
  • Therefore, notice that considering all possible scenarios,both the minimum and maximum payoffs from choosing low price are actually higher than the same estimates under choosing higher price.
  • Hence, to ensure a higher subsequent individual payoff, both the firms would expectedly choose lower price considering the possibilities of both higher minimum and maximum payoff compared to choosing higher price.
You might be interested in
Teachers and guidance counselors may encourage male students to pursue careers in the sciences, but they steer equally talented
Ymorist [56]
I think role playing


7 0
3 years ago
Jan. 1Purchased a small company and recorded goodwill of $177,000. Its useful life is indefinite. May 1Purchased for $144,000 a
stich3 [128]

Answer:

The Journal entries are as follows:

(i) On December 31,

No entry

(ii) On December 31,

Amortization expense A/c Dr. $16,000

           To Patents A/c                            $16,000

(To record the amortization expenses)

Workings:

Amortization expense:

= (Purchasing cost of patent ÷ Estimated useful life) × Time period

= ($144,000 ÷ 6) × (8/12)

= $24,000 × (8/12)

= $16,000

3 0
3 years ago
Rather than the borrower paying a small rate of interest in each cycle like with a credit card, the borrower using a payday loan
gregori [183]

Answer:

Rather than the borrower paying a small rate of interest in each cycle like with a credit card, the borrower using a payday loan... doesnt make you go thourgh the cycle of interest.

Explanation:

6 0
2 years ago
Granger Company had January 1 inventory of $150,000 when it adopted dollar-value LIFO. During the year, purchases were $900,000
Lisa [10]

Answer:

$624, 750

Explanation:

Purchases = 900,000

Sales = 1500000

Price index = 110%

Inventory= 189750

1,500,000 - [{($150,000 x 110%) + $900,000} - $189,750]

=1,500,000 - [($150,000 x 1.1) + $900,000] - $189,750

= 1,500,000 - (1065000 - 189750)

= 1,500,000 - 875250

=$624,750

Gross profit. = $624750

5 0
3 years ago
Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? (Select th
Westkost [7]

Answer:So, a capital gain is a profit that occurs when an investment is sold for a higher price than the original purchase price. Investors do not make capital ...

Explanation:

4 0
2 years ago
Read 2 more answers
Other questions:
  • Porches &amp; verandas, inc., agrees to build a screen porch for quinn, but fails to complete the job. quinn hires ramadas, inc.
    7·1 answer
  • For a school to be accredited, it must be certified in all of the following except _____.
    15·2 answers
  • Overton Company has gathered the following information. Units in beginning work in process 20,300 Units started into production
    11·1 answer
  • Consider the following data to answer the following questions: Country GDP Population A $32,000 1,500 B $20,000 1,000 C $10,000
    7·1 answer
  • On October 1, Eder Fabrication borrowed $55 million and issued a nine-month, 13% promissory note. Interest was payable at maturi
    11·1 answer
  • Even with international​ trade, countries rarely specialize because A. Some countries do not have a comparative advantage in any
    15·1 answer
  • There are three key approaches to entering international markets. each company must decide how to enter each chosen marketlong d
    7·1 answer
  • The fish in the river are consideredrival in consumption andexcludable whereas the fish in the private pond are and . In other w
    7·1 answer
  • Jim paid $250,000 for an apartment building with a fair market value of $260,000. At the time of the sale, the building was appr
    13·1 answer
  • The managers of Tanika Enterprises are considering how well alternative plans may meet its high-priority goals, as well as ident
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!