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evablogger [386]
3 years ago
11

Table 17-29 Suppose that two firms, Wild Willy's Wonderdrink (Firm W) and Hyper Hank's Hydration (Firm H), comprise the market f

or energy drinks. Each firm determines that it could lower its costs and increase its profits if both firms reduced their advertising budgets. But for the plan to work, each firm must agree to refrain from advertising. Each firm believes that advertising works by increasing the demand for the firm's energy drinks, but each firm also believes that if neither firm advertises, the cost savings will outweigh the lost sales. The table below lists each firm's individual profits:
Firm W

Breaks agreement Maintains agreement and advertises and does not advertise

Firm H Breaks agreement and advertises Firm W's profit = $16,500 Firm H's profit = $5,000 Firm W's profit = $14,000 Firm H's profit = $11,000
Maintains agreement and does not advertise Firm W's profit = $24,000 Firm H's profit = $4,000 Firm W's profit = $22,500 Firm H's profit = $10,000
Refer to Table 17-29. Which of the following statement(s) correctly characterizes the outcome of this game?

A. Although both firms collectively would earn higher profits by maintaining the agreement not to advertise, self-interest will cause each firm to break the agreement.
B. There is a Nash equilibrium when both firms advertise.
C. Both Firm W and Firm H have a dominant strategy to advertise.
D. All of the above are correct.
Business
1 answer:
Andrei [34K]3 years ago
5 0

Both Firm W and Firm H have a dominant strategy to advertise.

Explanation:

Dominant strategies, never despite what other competitors do, are treated similarly than others. In game theory, two forms of strategic supremacy exist:

-a strategy that is purely dominant is a strategy which provides the player with often better advantage, regardless of what the another player's strategy is ;

- a strategy that is weakly dominant, which gives all these other player's strategies the very same value, and which makes certain strategies more stringent.

Especially if one game is only weakly dominant (this means that it also does at least the same thing as any other strategy, but it just can in certain situations match other strategies, not beat them), and the same wages would apply to the player may be applied to more than one dominant strategy per player.

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4 0
2 years ago
U. s. treasury securities considered to be risk-free because they have minimal, if any, ____ risk.
zubka84 [21]

U. s. treasury securities are considered risk-free because they have minimal if any, default risk.

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You can buy any of these Treasury securities directly from the US government, through a bank, or through a broker. Despite being low-risk, treasuries do have some risks, such as being affected by inflation and interest rate changes. Treasuries have low returns because they are a secure investment. Federal taxes must be paid on interest received on Treasury securities.

To know more about Treasury securities refer to:  brainly.com/question/15004124

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8 0
1 year ago
Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 year
Alona [7]

Answer:

amortization expense is $36000

Explanation:

given data

purchased = $180000

time = 5 year

to find out

amount recorded as amortization expense

solution

we know here purchased  patent  for 180000 and here life is 5 years

so here

amortization expense will be purchased / time

amortization expense =  purchased / time

amortization expense = 180000 / 5

so amortization expense is $36000

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I believe in this case that ABC motors is the customer and the car was still being delivered to their office. Therefore the correct answer to this is:

The title of ABC motors would be “Void”

<span>This is considered right away as Void since there was no information or any knowledge on the part of ABC motors about the stolen car. </span>

7 0
3 years ago
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