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
Kisachek [45]
3 years ago
8

Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies split the market and e

arn $50 million each. If they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. Yet if one company advertises while the other does not, the one that advertises attracts customers from the other. In this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million.
If these two companies collude and agree upon the best joint strategy,
a.neither company will advertise.
b.both companies will advertise.
c.PM Inc. will advertise but Brown Inc. will not.
d.Brown Inc. will advertise but PM Inc. will not.
Business
1 answer:
sdas [7]3 years ago
7 0

Answer: (A)

If both companies collude and agree on the best joint strategy, then neither of them will advertise.

Explanation:

If PM Inc. and Brown Inc. agree on a strategy that is best for both of them, then they would decide not to advertise as this line of action will earn them both $50 million, which is higher than they stand to earn if they both advertise.

You might be interested in
Which conclusion is best supported by the data in the graph?
maria [59]

Technology is a growing part of the US economy.

The four largest manufacturing industries in America are computers and electronics; chemicals; food, beverages, and tobacco; petroleum and coal—account for about 51 percent of manufacturing GDP. The top nine sectors constitute approximately 79 percent of manufacturing GDP. These sectors accounted for 68 percent of total manufacturing employment in 2010.

From the above graph, we can see clearly that the technology sector had increased from $225billion in 2006 to about $360billion in 2011, which is about a 60% increase in a span of 5 years, thats a massive growth within a short period.

8 0
3 years ago
Read 2 more answers
Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to
Rama09 [41]

Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to Contingency.

<h3><u>What is Contingency?</u></h3>
  • A contingency is the potential possibility of a bad event, such as a pandemic, economic downturn, natural disaster, fraud, or terrorist attack. The coronavirus outbreak that struck businesses in 2020 made many employees reliant on remote work.
  • Companies had to adopt a remote work strategy as a result. Working remotely wasn't an option for some organizations, though, and as a result, increased security measures for both employees and clients were put in place to stop the virus from spreading.

Although contingencies can be planned for, it is often impossible to predict the kind and breadth of such unfavorable events in advance. Businesses and investors conduct analyses and put defensive measures into place to prepare for potential possibilities.

Know more about Contingency with the help of the given link:

brainly.com/question/17275335

#SPJ4

4 0
2 years ago
What would you do if you were in the position of the business executives described in the “gift giving and the african elder” ca
lubasha [3.4K]
The business executives were further complicating a situation that was even that complicated to begin with. Tribal elder or not, the business executives were informed that the man was a tribal elder, thus following through with the gift giving customs. This type of act walks hand and hand with the philosophy behind sending something a card. This act should be seen as an act of respect and continued growth, nothing more. This gift should not have been foreseen as an unethical compromise of any <span>kind, but rather a token of appreciation.

FOUND BY: </span>https://www.coursehero.com/file/7010504/Session-8-Discussion-Copy/
3 0
4 years ago
Managers can be classified in terms of either their level in the organization at which they work and or their area of specializa
777dan777 [17]

Answer is true.

Managers who are classified in terms of their level in the organization are known by titles such as store manager, assistant manager or co-manager.

Managers who are classified by their area of specialization have titles such as the marketing manager, the accounting manager or the sales manager.

5 0
3 years ago
Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has $39,000 in inventory. During t
vladimir2022 [97]
D. 16,110

39,000+9,250=48,250
48,250-(850+290)=47,110
47,110-31,000=16,110
4 0
3 years ago
Other questions:
  • An algebra class has 20 students and 20 desks. for the sake of variety, students change the seating arrangement each day. how ma
    5·1 answer
  • You are managing a portfolio of $1 million. Your target duration is 10 years, and you can choose from two bonds: a zero-coupon b
    9·1 answer
  • For Megan’s end-of-year performance appraisal, her supervisor solicited feedback from three of Megan’s coworkers, the manager of
    8·1 answer
  • Imperfect markets: do not exist in democracies. always result in supply exceeding demand. always result in demand exceeding supp
    15·1 answer
  • Four years ago, Company PJ acquired 1,000 acres of undeveloped land. On the date of the exchange, the land's FMV was $700,000. D
    15·1 answer
  • At Tom's Automotive Repair, the mechanics rarely interacted directly with customers. Work orders were processed by the customer
    6·1 answer
  • Effective _______ is when customers can seamlessly search for a fashion brand merchandise on their smartphones, order the mercha
    11·1 answer
  • 3. The economic system that is found in a Socialistic political system is a: *
    12·1 answer
  • Manufacturing overhead was applied to production at 60 percent of the direct labor cost of $10,000. The entry under perpetual in
    15·1 answer
  • organizations use estimated overhead rates, instead of actual cost, to apply overhead cost to work in porcess because that metho
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!