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zepelin [54]
3 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]3 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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McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $41,200 in cash dividends from Gondor. The entry to re
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3 years ago
A dentist shares an office building with a radio station. The electrical current from the dentist's drill causes static in the r
wariber [46]

Answer:

The dentist should get a new drill and it does not matter who pays for the new drill

Explanation:

Based on the information given the economically efficient outcome is that The dentist should get a new drill and it does not matter who pays for the new drill reason been that the building is been share by both the dentist and the radio station in which the electrical current from the dentist's drill was the one who causes static in the radio broadcast making them to lose some amount of money which means the dentist should go ahead and buy a new drill in which it does not matter who pays for the drill because they both shared the building .

7 0
3 years ago
What is income elasticity onlyy
Lina20 [59]

Income elasticity of demand measures the receptiveness of the quantity demanded for a good or service to a change in income.

It's calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.

Explanation:

Hope this helps!!

8 0
4 years ago
Could I Industries just paid a dividend of $1.62 per share. The dividends are expected to grow at a rate of 20 percent for the n
nata0808 [166]

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g  =  2.0736(1+4%)/12%-4%

                      =   1.6848

/8%

                      =   53.916

                 Year Year Year Year Year  

                    0             1             2           3            4  

                          20%  20%  20% 20%  

Dividend             1        1.2      1.44  1.728 2.0736  

Ifninty dividend                                               55.91*  

Total Cashflows 1    1.2     1.44         1.728 55.98  

Pres.Val @12%    1     1.07142 1.14795  1.22995   35.583

     

Value of stock 40.030    

4 0
3 years ago
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