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zepelin [54]
4 years ago
12

Suppose that each of two firms has the independent choice of advertising its product or not advertising. If neither advertises,

each gets $10 million in profit; if both advertise, their profits will be $5 million each; and if one advertises while the other does not, the advertiser gets $15 million profit while the other gets $2 million profit. according to game theory the nash equilibrium is
Business
1 answer:
Tanzania [10]4 years ago
5 0

Answer: The Nash equilibrium is a situation where individuals or players have no incentive to change their strategy taking into account the strategy of their opponents.

So in this case the nash equilibrium is "both advertise" The best equilibrium would be not to advertise any of the 2 but taking into account the attempt of what the opponent can do the nash equilibrium is where both advertise.

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Do debit cards have a higher interest rate than credit cards
Fed [463]
I would say yes they do
5 0
3 years ago
Read 2 more answers
Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next
Elina [12.6K]

Answer:

share price today  = $42.92

Explanation:

given data

annual dividend paid  = $3.60

dividends = $3.80

dividends = $4.10

dividends = $4.25

dividend  increase = 3.25 percent annually

discount rate = 12.5 percent

solution

we find here horizon value that is express as

horizon value P1= \frac{4.25*(1+0.0325)}{0.125-0.0325}

horizon value P1 = $47.44

so share price today will be

share price today =  \frac{D1}{(1+0.125)^1} +\frac{D2}{(1+0.125)^2} +\frac{Horizon value}{(1+0.125)^3}

share price today P2  = \frac{3.80}{(1+0.125)^1} +\frac{4.10}{(1+0.125)^2} +\frac{4.25-47.44}{(1+0.125)^3}

share price today  = $42.92

5 0
3 years ago
. A fall in the value of the US dollar against other currencies makes US final goods and services cheaper to foreigners even tho
SpyIntel [72]

Answer:

The partner who insist in the rightward shift

Explanation:

The aggregate demand curve is on a plot with aggregate US output on the X axis and the US aggregateprice level on the Y axis. If you want to know what happens to output demanded in response to changes in the US aggregate pricelevel, you shift ALONG the demand curve. If anything else, except the US aggregate price level changes, you're shifting the entire curve. For example, if interest rates fall, that increasesinvestment and shifts the curve to the right.

Note that, while foreigners are indeed responding to a lowerprice, the lower price in question is in the price the foreign nationals are paying, not the US prices.

5 0
3 years ago
A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of o
DerKrebs [107]

Answer:

A.  divisional structure.

Explanation:

Divisional structure -

It is the pattern of planning and designing the organization into small divisions , is referred to as divisional structure.

The division can be on the basis of the geographical areas .

Huge organisation or companies adapts this method , top have better control on the company .

Hence , from the given information of the question ,

The correct option is divisional structure .

7 0
3 years ago
Akihabara Imports offers the widest selection of Japanese animation products available on the Internet.
n200080 [17]

Answer:

The message is designed to persuade <u>the audience/prospective consumers.</u>

Specifically, the primary purpose fo this message is to <u>sell animation products.</u>

The secondary purpose is to <u>position </u><em><u>Akihabara Imports</u></em><u> as an appealing brand or the best place to purchase Animation Products.</u>

<u />

The questions to ask when profiling an audience are:

E) Who is my primary Audience?

It is important to know who one is advertising to. That is, those who can actually purchase ones product(s) must be identified. It is illogical, for instance, to advertise Mannequins to Farmers. They have no use for it.

B) Why am I writing this message?

As already stated above, the purpose of advert must be clear. When you know want to achieve, the next question to ask is 'how can I achieve this?', 'who can help us achieve this'?

C) What is my relationship with the audience

If a business is a first timer in the market, it means there is no relationship at all with the target audience. An existing business with a history of transactions with the target audience would most likely approach it's adverts differently.

Please Note:

  • You don't need to like you audience to sell or advertise to them. However, it is critical to have a value adding mentality to succeed in the market place.

Cheers!

8 0
3 years ago
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