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Bess [88]
2 years ago
12

Two firms decide whether to launch a new product: (i) If both firms choose to launch a new product, then each firm will receive

$40 million due to incurring new expenses; (ii) if just one firm chooses to launch a new product, the firm launching a new product grabs market share from the other firm, and will receive $30 million, while the other firm which chooses not to launch will receive $45 million; (iii) if neither firm choose to launch a new product, then each firm will receive $50 million from current market. Assume both firms wants to maximize its revenue, so what will be their best move
Business
1 answer:
lisabon 2012 [21]2 years ago
4 0

Answer:

don't launch

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

The payoff matrix for this question is

                                     Launch (in millions)               Don't Launch  (in millions)  

Launch (in millions)                  $40, $40                      $30, $45

Don't Launch (in millions)         $45, $30                      $50, $50

It can be seen that the best strategy for each firm is not to launch because the payoffs of not launching ($45, $50) is greater than the payoff  of launching ($40, $30)

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A negative result of high tariffs is that they can sometimes lead to
kramer

Answer:

A negative result of high tariffs is that they can sometimes lead to PROTECTIONISM

Explanation:

Protectionism is an activity that happens in economics. What this is, is actually a type of policy that the government initiates within a country to restrict or try to stop trade, imports from international countries. This policy's sole purpose is to help the country improve its economic standing.

5 0
3 years ago
Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, sh
daser333 [38]

Answer:

$156,454.87

Explanation:

Future Value of an annuity due: FV = Pmt x ((1+r)n -1))/r) x (1+r)

When Payment per period (PMT) = $10,000, Discount Rate per period= 8%,Number of periods (n) = 10

Future Value = $10,000 * ((1+0.08)^10 -1))/0.08) * 1.08

Future Value = $10,000 * [(1.08)^10 - 1 ]/ 0.08 * 1.08

Future Value = $10,000 * 2.15892499727-1/0.08 * 1.08

Future Value = $10,000 * 1.15892499727/0.08 * 1.08

Future Value = $10,000 * 14.486562465875 * 1.08

Future Value = 156454.87463145

Future Value = $156,454.87

3 0
3 years ago
Ted was hiring a new financial analyst, and he had several good candidates. He was leaning toward hiring Akiko, a Japanese Ameri
wlad13 [49]

Answer:

The answer is D. Stereotyping

Explanation:

Stereotyping is the tendency to attribute to an individual the characteristics one believes are typical of the group to which that individual belongs. It is the over generalized belief about a particular set of people.  

Hence Ted is  said to be a stereotype because he is generalizing that Asians are better in math

Therefore the answer is D. Stereotyping  

3 0
3 years ago
In 2010, some bottles of a competitor’s kombucha were bubbling and leaking at a whole foods in texas. Test results revealed that
Nitella [24]

After losing all of this distribution, one option for it might have been a form of nonstore retailing that uses machines to offer goods for sale. This is an example of automatic vending.

Right here are the styles of retailing that exist these days – save retailing: This includes different forms of retail stores like branch shops, specialty shops, supermarkets, comfort shops, catalog showrooms, drug shops, superstores, discount stores, excessive cost stores, and so forth.

The retailing concept is an idea that examines the evolution of and transformation of the retail lifestyles cycle. This concept was first introduced by using Professor McNair from Harvard College. The retailing idea indicates new retailers will generally begin with low-value and occasional-margin operations.

Retail is the sale of products and services to purchasers, in comparison to wholesaling, that is sales to business or institutional clients. A store purchases goods in massive quantities from manufacturers, without delay or via a wholesaler, after which sells in smaller quantities to purchasers for a profit.

Learn more about retailing here brainly.com/question/17613245

#SPJ4

7 0
1 year ago
A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warra
Murrr4er [49]

Answer:

Report a prior period adjustment decreasing retained earnings by $1,365,000.

Explanation:

Going by the question we can derive that $2,100,000 is the prior period's warranty. Consequently, it will be charged to the current year's earnings following the deduction of tax, 35%.

(2,100,000 *65) /100 = $1,365,000

This above calculation is so because Under the accrual basis of accounting...operating expense are reported on the income statement in the particular period when they took place or when they expire

4 0
3 years ago
Read 2 more answers
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