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
Think about how governments allocate their budgets. What might make government officials decide to spend additional money on Soc
Diano4ka-milaya [45]
Social security spending is what would help out everyone , not just the military . Additional money spent on social security would greatly help out
4 0
4 years ago
Read 2 more answers
A $20,000 municipal bond is offered for sale at $18,000. The bond interest rate is 6 percent per year payable semiannually. The
Elis [28]

Answer:

For this calculation we need to use the Effective Annual Yield Formula.

EY = (1 + r/n)^n - 1

Where:

  • EY = Effective annual yield
  • r = coupon rate
  • n = number o periods the coupon rate is compounded per year

Plugging the amounts into the formula we obtain:

EY = (1 + 0.06/2)^2 - 1

EY = 0.062

EY = 6.2%

To obtain the effective semi-annual yield, we simply divide the effective annual yield by two:

= 0.062/2

=0.031

Effective semi-annual yield = 3.1%

In this case, we would not invest in the bond because the effective semi-annual yield does not reach the required 4%.

Explanation:

3 0
4 years ago
James, a casino manager, defines and uses signals and symbols to influence corporate culture by communicating central values to
matrenka [14]

Answer: Cultural Leadership

Explanation:

A) Egalitarian leader is WRONG

B) Cultural Leader: This is the kind of leader that instills cultural heritage such as customs, believe, past stories and values in his/her subodinate as in the case of James who uses signals and symbols to influence corporate culture by communicating central values to employees.

C) Servant Leader is WRONG. It can be likened to a leader that performs almost all the duties of the subodinate

D) Totalitarian Leader is also WRONG

E) Transitional Leader is WRONG

8 0
3 years ago
If a broker shows a home for another broker who has it listed and a married couple comes in and he answers all questions the bes
AlekseyPX

Answer:

no fiduciary relationship has been established

Explanation:

Based on the information provided within the question it can be said that in this scenario no fiduciary relationship has been established. A fiduciary is a person who holds a legal or ethical relationship that revolves around trust with another person or group. This type of person usually handles money for other people. In this scenario though, since the individual is just taking over temporarily for the couple and is not handling the couples house purchase, then no relationship has been established.

3 0
3 years ago
Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the r
Otrada [13]

Answer:

b. a reorganization.

Explanation:

Under the chapter 13, the bankruptcy should be filed and it mainly reorganization plan for the payment. It is to be done by splitting the non-secured debt across the various years also it permits the individual to retain the assets

So as per the given situation, in order to attain the goal, the proprietorship should file the petition in bankruptcy under for relief via a reorganization

6 0
3 years ago
Other questions:
  • Why is it generally safer to travel in the right lane on the freeway?
    15·1 answer
  • Cost push is most likely to occur in those industries in which management or labor is so strong that it can dictate prices. True
    7·1 answer
  • Firms should seek to continually develop new core competencies because all core competencies have limited life spans.
    5·1 answer
  • Attributes of rigorous research can be shared across subjects of study. For example, Collins and Porras (2002) highlight the imp
    11·1 answer
  • True or false created during the great depression, the federal deposit insurance program resulted in a large number of bank fail
    11·1 answer
  • Personal selling is: Group of answer choices the preferred method for placing nonpersonal promotions for a company and/or its pr
    14·2 answers
  • The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z Sales ? ? 1,25
    12·1 answer
  • Morrison Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system
    6·1 answer
  • Bisa cari tau ini negara apa..<br>lha koq gua bisa nyasar tu gmn​
    9·1 answer
  • What are the 6 major sectors of the travel industry?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!