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
John Q. Investor manages an equity portfolio with a market value of $3,000,000. The portfolio beta is 1.6. John Q. finds this so
Lubov Fominskaja [6]

Answer:

Portfolio Beta  = 1.2815

Explanation:

given data

market value = $3,000,000

portfolio beta = 1.6

sells = 25

times index = $10

currently trading = 15379

to find out

anticipates that this hedge will reduce the portfolio beta to

solution

we get number of contract to sell is here

number of contract to sell = Portfolio Beta × \frac{Portfolio\ value}{index\ value\ * multiplier}      ......................1

put here value we get

25 = Portfolio Beta × \frac{3,000,000}{15379 * 10}

solve it we get

Portfolio Beta  = 1.2815

7 0
3 years ago
Jason Graham's startup, which is in the electronics industry, was launched on January 1, 2009. However, prior to its formal laun
Bas_tet [7]

Answer:

C) sweat equity

Explanation:

The definitions ok sweat equity are:

1. Increase in the value of a business (beyond the money invested) created by the unpaid mental and / or physical work of the founder / owner.

2. Increase in the value of a property (beyond its purchase price) created by the hard work of the owner / occupant in improving its comforts and / or appearance.

3. An additional percentage of a company's common stock (common stock) allocated to senior executives (beyond their current stock) as additional motivation to continue working hard for the success of the company.

8 0
3 years ago
Read 2 more answers
“All cheques are bills but all bills are not cheque” –Explain
aleksklad [387]

All cheques are bills but all bills are not cheque.

This is correct statement because both cheque and bill are piece of paper which displays money which is to be paid to someone.

A bill is a document which is drawn on any person and there is no name on the bill whereas cheque is a document which is drawn on the payee name only.

Both of these are documents which are used to pay the amount to someone.

A cheque can be drawn payable on demand while bill is drawn on expiry of certain period.

Learn more at brainly.com/question/24469524

7 0
2 years ago
please subscribe my mom's channel those who subscribed my mom's channel I will mark as brainlylist,thnx and follow 101 % gaurant
horrorfan [7]

Answer:

ou okay!! done i will do it

3 0
3 years ago
Toyota marketed its RAV4 hybrid model to a distinct segment of consumers as an adventurous, sporty hybrid that stands out as bei
pychu [463]

Answer:

the marketing mix variable—place

Explanation: this easy bc u just see what the variablie to the mix is times that

3 0
2 years ago
Other questions:
  • Four grams of musk oil are required for each bottle of mink caress, a very popular perfume made by a small company in western si
    12·1 answer
  • if consumers to demand in a quantity of 100 at $4 per item and the suppliers Supply 200 of the item at $4 than a surplus is crea
    10·1 answer
  • Price indexes can be used to compare prices across different periods. Suppose that a year of tuition for college at public insti
    11·1 answer
  • What is an investment report that is given to potential investors called
    5·1 answer
  • On April 1, 2020, Rasheed Company assigns $400,000 of its accounts receivable to the Third National Bank as collateral for a $20
    13·2 answers
  • "The degree of financial leverage is the ratio of​" ________ to percentage change in EBIT. A. operating profit B. percentage cha
    10·2 answers
  • Use the adjusted trial balance for stockton company below to answer the questions that follow. stockton company adjusted trial b
    8·1 answer
  • Need help pleaseeee nowwwwwwwwwwwwwwwwwwwwwww
    9·2 answers
  • On December 31, 2015, Howells, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost
    11·1 answer
  • When a company uses price as a competitive weapon to drive weaker competitors out of a national market, it is using _____ pricin
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!