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Masteriza [31]
3 years ago
10

If you advertise and your rival advertises, you each will earn $3 million in profits. If neither of you advertises, you will eac

h earn $7 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $10 million and the non-advertising firm will earn $1 million. If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for:

Business
1 answer:
ValentinkaMS [17]3 years ago
4 0

Answer:

Each company should advertise

Explanation:

Nash equilibrium a concept in game theory which describes the optimal strategy for a party in a non co-operative game. It is the best strategy for the player regardless of what the other player is playing.

In this question, if both parties advertise, they earn $3 million .

If one of you advertises and the other does not, the firm that advertises will earn $10 million and the non-advertising firm will earn $1 million

If neither of you advertises, you will each earn $7 million in profits. 

The profits from advertising can either be 3 million or 10 million while the profit from not advertising can either be 7 million or 1 million.

We can see the gains from advertising is more than the gain of not advertising. So the bash equilibrium is to advertise.

Please check the attached image for a table showing this game

I hope my answer helps you

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mamaluj [8]

A substance decays in 22ach days. after 7 days, there are nine milligrams of the substance last. milligrams had been there to start with:

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The wooden of the white pine is long-lasting for indoor use, in particular, whilst covered by means of paint, however, while uncovered to moist air it swiftly decays, and it is very prone to dry rot; its miles are said to be excellent while grown on sandy soils.

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1 year ago
The days' sales uncollected ratio is used to: Multiple Choice Estimate how much time is likely to pass before the amount of acco
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Answer:

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The consumer price index or CPI is the most acceptable index used in determining the rate of inflation. Inflation may result from high economic growth where firms and individuals have increased incomes resulting in too much money in circulation.  A moderate level of inflation is required to promote spending and sustain favorable economic growth.

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Seeing as executive orders are issued to members of the executive - which are under the President - and are done to ensure that the laws of the land are carried out, the President is not only following the Constitution's directives in  Article II, Section I of the Constitution but doing it within their power as head of the executive.

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