1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
It is always possible to identify all the causes of a problem completely. please select the best answer from the choices provide
Rasek [7]

It false that the causes of a problem can always possible to identify completely.

<h3>What is problem solving?</h3>

This is defined as the process of finding solution to a task that seems difficult. It is a skill, hence applied after a problem has been identified.

Hence, It false that the causes of a problem can always possible to identify completely.

Learn more about problem solving here : brainly.com/question/23945932

#SPJ4

8 0
1 year ago
Which of the following statements best explains why the red bar goes up when the blue goes up?
vesna_86 [32]

<u>Answer: </u>Higher spending than taxing results in a deficit, which contributes to more debt.

<u>Explanation:</u>

Here the red bar is referred to the debt and the blue bar is referred to the spending. When the government spending is more it decreases the government revenue and creates a deficit in the funds. When there is deficit it means the government borrows funds for spending which increases the debts.

Government spending to improve the status of the economy in the country. It Invests is various activities for growth and development purpose. Only on collecting high taxes the revenue of the government will increase. When taxes collected are low the government revenue is also low.

8 0
2 years ago
The Allied Group is considering two investments. The first investment involves a packaging machine, which can be used to package
Lemur [1.5K]

Answer:

1. Calculate each project's payback period.

Payback period packaging machine = the positive cash flows are lower than the initial outlay

Payback period molding machine = 4.45 years

2. Calculate the NPV for each project.

Using a financial calculator

NPV for packaging machine = -$4,178.24

NPV for molding machine = -$2,907.50

3. Calculate the IRR for each project.

IRR for packaging machine = -0.86%

IRR for molding machine = 3.5%

4. If the two projects are independent of each other, which projects, if any, should be selected? Explain why or why not.

None should be selected since the NPVs are negative

5. If the two projects are mutually exclusive, which project, if any, should be selected? Explain why.

None should be selected since the NPVs are negative

3 0
3 years ago
inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December 31 for Holland
Varvara68 [4.7K]

Answer:

                                            Year 2014           Year 2013

a) Inventory Turnover ratio 3.4 times  and   3.1 times

b) Number of days' sales in inventory 107.3 days and  117.7 days

Explanation:

As per the data given in the question,

As we know that

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

where,

Average inventory

= (Beginning inventory + ending inventory) ÷ 2

For Year 20Y4 :

Average inventory = ($359,160 + $516,840 ) ÷2

= $438,000

And, the cost of goods sold is $1,489,200

So,

Inventory Turnover ratio

= $1,489,200 ÷ $438,000

= 3.4 times

For Year 20Y3 :

Average inventory = ($251,120 + $359,160) ÷ 2

= $305,140

And, the cost of goods sold is $945,934

So,

Inventory Turnover ratio

= $945,934 ÷ $305,140

= 3.1 times

Now

Number of days' sales in inventory = Number of days in a year ÷ Inventory Turnover ratio

For 20Y4

= 365 days ÷ 3.4

= 107.3 days

For 20Y3

= 365 days ÷ 3.1

= 117.7 days

Basically we applied the above formulas

4 0
3 years ago
How long should an electronic cover letter be?
Delicious77 [7]
<span>Approximately 150 words.</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • Jack has a photography studio. He provides high-resolution images on a disc to all his clients. What step should Jack take befor
    7·1 answer
  • Bill has a mortgage loan on his personal residence. he decides to pay 18 months of interest in advance on october 1, 2016. the t
    12·1 answer
  • Development associates (da) agrees to buy five acres of land from eastside properties for $15,000. eastside fails to go through
    5·1 answer
  • Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 a share. The expected growth rate in dividends
    6·1 answer
  • The Financial Services Modernization Act allowed bank holding companies to open insurance underwriting affiliates and allowed in
    7·1 answer
  • Basel lll mainly focuses on _.​
    12·1 answer
  • The items in a budget that can be estimated most accurately and easily are
    12·1 answer
  • Carla Vista Co. bought a machine on January 1, 2017. The machine cost $180000 and had an expected salvage value of $27000. The l
    14·1 answer
  • Help please!!!!!!!!!!!!!!!!!!!
    11·1 answer
  • If a nation has gdp of $12,500 billion and gdp per capita of $62,500, what is the nation's population?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!