Answer:
they use all information available to them, and the information they use not only contains past experiences, but also their expectations for the future
Answer:
Flashfone and Pictech
The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.
Explanation:
a) Data and Calculations:
Pictech
High Low
High 8 8 3 10
Flashfone
Low 10 3 5 5
b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively. This payoff level does not put any of the two firms at a disadvantage.
What Adam Smith illustrated in improvement of efficiency in
manufacturing units is through the application of specialization.
Specialization is a way of providing better service and means of focusing
production in a greater degree that could be of benefit for both consumers and
producers.
Answer:
a. marginal benefit is greater than both the average cost and the marginal cost.
Explanation:
Marginal cost is the cost of any action taken and average cost is the average of all the costs associated with the action under consideration. Marginal benefit is the benefit of each action undertaken. A rational approach is to take an action when marginal cost and average cost will be lower than the marginal benefit. You should consider the net Marginal benefit of an action before taking decision.