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katen-ka-za [31]
3 years ago
12

Suppose the market for computer chips is dominated by two firms: Intel and AMD. Intel has discovered how to make superior chips

and is considering whether or not to adopt the new technology. Adoption would entail a fixed setup cost of C but would increase revenues. However, if Intel adopts the new technology, AMD can easily copy it at a lower setup cost of C/2. If Intel adopts and AMD does not, Intel would earn $20 in revenues while AMD would earn $0. If Intel adopts and AMD does likewise, each firm will earn $15 in revenues. If Intel does not adopt the new technology, it will earn $5 and AMD will earn $2. a. Write this game in extensive form. b. Under what conditions (i.e., for what values of C) does AMD have an incentive to adopt the new technology if Intel introduces it

Business
1 answer:
mezya [45]3 years ago
5 0

Answer:

Explanation:

See the figure below.

b. AMD's payoff from adopting must exceed its payoff from not adopting. This is true if 15 - C/2 > 0. Solving for C, we find that AMD has an incentive to adopt if Intel adopts whenever C < 30.

c. No. When C = 12, AMD's best strategy is to adopt if Intel adopts, which means Intel would earn only 3by adopting. By not adopting, Intel can earn a payoff of 5; Intel's best option is not to adopt. This is the only Nash equilibrium, and it is also a subgame perfect Nash equilibrium

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Given the following information, prepare an income statement for the Dental Drilling Company.
dmitriy555 [2]

Answer:

Results are below.

Explanation:

<u>Giving the following information:</u>

Selling and administrative expense $90,000

Depreciation expense 75,000

Sales 621,000

Interest expense 46,000

Cost of goods sold 231,000

Taxes 50,000

<u>With the information listed above, we need to make an income statement following the structure below:</u>

<u></u>

Sales= 621,000

COGS= (231,000)

Gross profit= 390,000

Selling and administrative expense= (90,000)

Depreciation expense= (75,000)

Interest expense= (46,000)

Eearning before taxes (EBT)= 179,000

Taxes= (50,000)

Net operating income= 129,000

8 0
3 years ago
Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 61,500 S
Rufina [12.5K]

Answer:

d. $18,900 unfavorable.

Explanation:

Direct labor efficiency variance = SR*(SH-AH)

18000 = SR*(63000-61500)

18000 = 1500 SR

SR = $12

Total standard direct labor cost for February = 63000*12= $756,000

Direct labor flexible-budget variance = $774,900 - $756,000 = $18900 Unfavorable

3 0
3 years ago
The opportunity cost of attending college is likely to be highest for a high school graduate Choose one: A who is very intellige
Valentin [98]

Answer:

B. who can immediately take over the family business

Explanation:

<em>Option A</em> is wrong because opportunity cost is not related to intelligence.

<em>Option C</em> is not correct because a high school graduate and a college attending student can access to student loans.

The family's wealth can not be a factor in terms of opportunity cost of attending college or a high school graduate. Therefore, <em>option D</em> is incorrect.

Option B is correct as a college attending student cannot take over the family business. So, it is his opportunity cost. On the other hand, a high school graduate can take over the business.

8 0
3 years ago
What is the purpose of clarifying butter?
Naily [24]

it's b (: it's simply regular butter but with the milk solids removed.

6 0
3 years ago
Read 2 more answers
What is the vertical component​
MrMuchimi

Answer:

4.33 I guess

Explanation:

F=Fysin

F=5×sin60

F=5×√3

2

F=4.33

5 0
3 years ago
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