Asset debits are recorded in the left debits column.
The answers are the following:
a.
Brandon:
$7,000 + [($10,000/4)×3¿= $8,500
Ryan:
$7,000 + [($10,000/4)×1¿= $7,500
b.
Brandon $7,000
Ryan <span>$7,000</span>
Answer:
Flashfone and Pictech
The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.
Explanation:
a) Data and Calculations:
Pictech
High Low
High 8 8 3 10
Flashfone
Low 10 3 5 5
b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively. This payoff level does not put any of the two firms at a disadvantage.
Answer:
True
Explanation:
If the total output of the economy does not change and the change in the money supply directly affected the changes in the price level, then the increase in the money supply will simply increase the inflation rate. For example, if the economy produced 100 units at $1 per unit, and the total money supply increases by 5%, the price of the units will increase to $1.05, but the total output will still be 100 units. The only thing that changed was a decrease in the relative value of the currency due to an increase in the inflation rate.
