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]
4 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]4 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
An employment interview designed as a free-flowing dialogue is referred to as a(n) _____ interview.
Romashka [77]

Answer:

2). open

<u>Multiple -choices</u>

<u>1)</u>. behavioral 2). open 3). semiprofessional 4). standard

Explanation:

An open interview is designed as a free-flowing dialogue between the interviewer and the applicant. The interview can be conducted in a group or individual format. The interviewer does not present themselves with a set of prepared questions for the candidates to respond.

An open interview can be conducted either in the office or outside the office. They are more casual than formal and may lead to instant job offers.

7 0
3 years ago
Read 2 more answers
Hooray! You hit your sales number for the quarter and are awarded a $3,000 bonus. You spend $2,100 on a new living room TV and e
kotykmax [81]

Answer:

0.7 and 0.3

Explanation:

Data provided in the question

Awarded bonus value = $3,0000

Spending amount on a new living room = $2,100

So by considering the above information , the MPC and MPS is

As we know that

MPC = change in Consumption spending ÷ change in income

        = $2,100 ÷ $3,000

        = 0.7

And, the

MPC + MPS = 1

0.7 + MPS = 1

So, the MPS is 0.3

4 0
3 years ago
.The Bank of King's Landing has made many loans to the lords of Winterfell. The Bank is considering whether they will benefit or
kotykmax [81]

The Bank of King's Landing would realize an unexpected benefit when the actual rate of inflation is lower than the expected rate of inflation.

<h3>Effect of Change in Inflation Rate on Lending</h3>

In monetary economics, when the actual rate of inflation is lower than projected, the lender or bank benefits since it is similar to receiving a bonus.

The lender or the bank, on the other hand, will lose if the rate of inflation is higher than predicted.

As a result, when the actual rate of inflation is lower than the forecast rate of inflation, the Bank of King's Landing will gain unexpectedly.

The reason for this is that the amount they receive will be worth more than they anticipated when they made the loans to the lords of Winterfell.

Learn more about how inflation affects lending here: brainly.com/question/14988663.

7 0
2 years ago
Explain how will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a co
devlian [24]

Answer:

a. If demand increases and supply is constant, there would be a rightward shift of the demand curve. As a result, equilibrium price and quantity would increase

b. An increase in supply would lead to a rightward shift of the supply curve. As a result price decreases and quantity increases. A decrease in demand would lead to a leftward shift of the demand curve. As a result, quantity and price decreases.  Taking these two effects together, equilibrium price decreases and there is an indeterminate effect on equilibrium quantity

c. An increase in demand leads to a rightward shift of the demand curve. As a result, equilibrium price and quantity increases. A decrease in supply would lead to a leftward shift of the supply curve. This leads to a decrease in quantity and an increase in price. Taking these two effect together, there would be an increase in equilibrium price and an indeterminate effect on equilibrium quantity

d.  A decrease in demand would lead to a leftward shift of the demand curve. As a result, quantity and price decreases.  A decrease in supply would lead to a leftward shift of the supply curve. This leads to a decrease in quantity and an increase in price. Taking these two effect together, there would be a decrease in equilibrium quantity and an indeterminate effect on equilibrium price

Explanation:

Please check the attached images for the demand and supply diagrams

6 0
3 years ago
If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 110 million, it
SCORPION-xisa [38]

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 110 million, its real per capita output will have increased by about $167. This is further explained below.

<h3>What is real per capita output?</h3>

Generally, The real gross domestic product per capita is a figure that is calculated by dividing the entire economic output of a nation by the total population of that country after adjusting for inflation.

In conclusion, If the actual production of a DVC goes from $200 billion to $260 billion and at the same time its population goes from 100 million to 110 million, then the real output per capita will have climbed by around $167.

Read more about real per capita output

brainly.com/question/15694733

#SPJ1

3 0
2 years ago
Other questions:
  • Willey Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhea
    6·1 answer
  • "A cost that is constant within a relevant range but differs outside the relevant range of activity is best classified as what t
    9·1 answer
  • Suppose you go out with your friend for coffee and donuts at the local donut store. the first donut you eat tastes incredibly go
    5·1 answer
  • Q 2.3: mason corporation purchased a piece of land 5 years ago when the price of land was low. it plans to develop the land into
    6·1 answer
  • The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
    13·1 answer
  • Karen’s monthly cell phone bill is $75. What type of budget item would her cell phone bill be?
    11·2 answers
  • Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two
    12·1 answer
  • Mohammed works in a marketing department and is working on his Master's Degree in Marketing. His career goal is to become the ma
    8·1 answer
  • A problem is listed below. Identify its type. Mr. Garcia is planning for retirement. He deposits $750 each month into a retireme
    9·1 answer
  • Transland Company has recently tried to improve its analysis for its manufacturing process. Units started into production equale
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!