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
22. Preferred stockholders hold a claim on assets that has priority over the claims of A) both common stockholders and bondholde
DedPeter [7]

Answer:

C) common stockholders, but after that of bondholders.

Explanation:

Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.  

The preferred shareholder is given preference for the distribution of dividends, which is higher than the common stock. It is paid as per the discretion of the company´s directors. Instead, they have limited right and they do not vote for corporate governance like a common stockholder. In the case of the dissolution of the company, the preferred shareholders will still receive payment due to them in terms of dividends. They have a feature of both bonds and equity stockholders.

6 0
2 years ago
Which central tendency is most suitable for measuring average rate growth ​
ValentinkaMS [17]

Answer:

hey mate your answer is here

4 0
3 years ago
i have a friend i think of as my brother and i changed the emoji on messenger to the teddy bear emoji and his nickname to 'My Te
olga2289 [7]

Answer:

oh wow that's nice I think... XDD

5 0
2 years ago
Read 2 more answers
Arnold, a single individual, has adjusted gross income of $65,000 in the current year. Arnold donates the following items to his
Olin [163]

Answer:

Option A. $15,400

Explanation:

The net deduction allowed as an charitable contributions are as under:

                                             $

1. ABC Cop. stock

Cost $6000  

FMV <u>$22000</u>                   $16000

2. Personal Clothing Items

Cost $1000

FMV <u>$400  </u>                      <u>  ($600) </u>

Net Deduction                 $15,400

The amount that qualifies as charitable contribution for the year is $15400.

3 0
2 years ago
Hey guys! please help me with this questions.
KiRa [710]

Answer:

1.Business objectives are the specific and measurable results companies hope to maintain as their organization grows. Entrepreneurs and business leaders must track performance in every part of their business to make sure they're moving in the right direction

Explanation:

3 0
2 years ago
Other questions:
  • Select the correct answer.
    6·1 answer
  • Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just compl
    13·1 answer
  • Suppose the supply curve for wool mittens is represented​ as: Q​ = 50​ + 1/2X​ - 5Y​ - 24Z. Which one of the following statement
    11·1 answer
  • Discuss the reasons why suppliers are sometimes reluctant to share cost information with buyers - particularly during the early
    6·1 answer
  • How many of the following transactions are operating activities?
    9·1 answer
  • Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financi
    14·1 answer
  • A stock is expected to pay $ 1.10 per share every year indefinitely and the equity cost of capital for the company is 8.4​%. Wha
    13·1 answer
  • Prepare a statement of cash flows. Also assume the following:
    14·1 answer
  • What did you get for Christmas? Did you get things you wanted? If not list stuff that you wanted but didn't get.
    10·2 answers
  • the four key problem-solving steps occurring during the agreement stage: brainstorm as many solutions as possible, develop an ac
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!