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katrin2010 [14]
3 years ago
9

Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (

in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $10 million and Pictech will earn a profit of $3 million. (Hint: Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.) Pictech High Price Low Price Flashfone High Price 8, 8 3, 10 Low Price 10, 3 5, 5 If Flashfone prices high, Pictech will make more profit if it chooses alow price, and if Flashfone prices low, Pictech will make more profit if it chooses ahigh price. If Pictech prices high, Flashfone will make more profit if it chooses alow price, and if Pictech prices low, Flashfone will make more profit if it chooses ahigh price. Considering all of the information given, pricing highis not a dominant strategy for both Flashfone and Pictech. What is the Nash equilibrium of this game
Business
1 answer:
Vladimir [108]3 years ago
7 0

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.

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From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simu
OverLord2011 [107]

Answer:

True

Explanation:

The theory of constraints focuses on establishing the most important limiting factor or constraint in a business and improve it in order to improve the whole company's performance.

In simple terms, a company recognizes their greatest weakness and tries to improve it, so that it no longer represents a limitation.

This theory was originally developed for manufacturing companies, and it was meant to reduce bottlenecks (manufacturing constraints). Therefore one of its main goals is to lower inventory levels and operating costs while increasing production output.

8 0
3 years ago
A certain delivery service offers both express and standard delivery. Seventy-five percent of parcels are sent by standard deliv
Elena L [17]

Answer:

Probability, P(n) = 3/8

Explanation:  Let standard delivery be S and express delivery be E.

I) When the parcels were sent:

S(n) = 75/100 and E(n) = 25/100

II) When the parcels arrived:

S(n)← = 80/100 and E(n)← = 95/100

The probability a record of a parcel delivery is chosen, P(n) = S(n)*E(n) + E(n)*S(n) = 75/100*25/100 + 25/100*75/100

P(n) = 3/16 + 3/16 = 6/16

∴ P(n) = 3/8

7 0
3 years ago
Thrift rents a compact car for $33 per day, and General rents a similar car for $20 per day plus an initial fee of $65. For how
Lyrx [107]

Answer:

The Correct answer would be, When Days will be greater than 5

Explanation:

There are two companies who give cars on rent.

Thrift rents a car for $33 per day

i-e

T=$33D

General rents the car for $20

i-e

G=$20D

and general charges an initial fee of $65

So  

G=$20 + $65

So according to question, for how many days it would be cheaper to rent from General.

So when charges by general are less than charges by thrift, as shown below:

65+20D < 33D

65 < 33D-20D

65 < 13D

D > 5

So the answer would be 5 Days.

7 0
3 years ago
Match the financial statement with its description. To match them, click the Description and then click the Financial Report Nam
kherson [118]

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

Notes to financial statements: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.

The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.

Report of independent registered public accounting firm: Attests to the fairness of the presentation of the financial statements.

is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

Management's discussion and analysis of financial condition and results of operations (MD&A): Is written by the company to help investors understand the results of operations and the financial condition of the company.

Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

Financial statements: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.

are reports prepared by a company's management to present the financial performance and position at a point in time.

7 0
4 years ago
X-treme Vitamin Company is considering two investments, both of which cost $22,000. The cash flows are as follows: Year Project
olga2289 [7]

Answer:

0.88 year and 1 year

Explanation:

The computation of the payback period for Payback period for Project A and Project B is shown below:

Payback period = Initial investment ÷ Net cash flow

For Project A

Initial investment = $22,000

Year 1 = $25,000

Since the initial investment is less than the annual cash flows so the payback period is

= 0 years + ($22,000 ÷ $25,000)

= 0.88 years

For Project B

Initial investment = $22,000

Year 1 = $22,000

So, the payback period is

= $22,000 ÷ $22,000

= 1 year

4 0
4 years ago
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