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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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As the facility manager, you listen to your employees and demonstrate concern and care about their social needs, but still make
bagirrra123 [75]

Answer:

Democratic management style

Explanation:

In a democratic management style, low-levels employee has the ability to influence the decision making made by the managers. Before making a decision, the managers will ask for inputs from the employees and take their perspective and needs into account.

This type of management style is very rare among large corporations. Most companies that use this style usually do not have too many team members.

4 0
3 years ago
An adjusting entry was made on year-end December 31 to accrue salary expense of $3,000. Assuming the company does not prepare re
wel

Answer:

Dr Salaries Payable $3000

Dr Salaries Expense $3600

Cr Cash $6600

Explanation:

Preparation of the entries to record the $6600 payment of salaries in January of the following year.

Based on the information given Appropriate journal entries to record the $6600 payment of salaries in January of the following year will be:

Dr Salaries Payable $3000

Dr Salaries Expense $3600

($6600-$3000)

Cr Cash $6600

(To record payment of salaries)

5 0
3 years ago
The following information shows Carperk Company's individual investments in securities during its current year, along with the D
melamori03 [73]

Answer:

a. See the table below.

b. Debit Fair value adjustment - Available-for-sale for $47,981; and Credi Unrealized gain - Debt for $47,981.

Explanation:

1. Identify whether each investment should be classified as a short-term or long-term investment. For each investment, indicate in which of the six investment classifications it should be placed.

This can be done as follows:

<u>No.      Types of investment           Classification of investment           </u>

a.         Long-term investment         Debt investment held to maturity

b.         Long-term investment         Equity method investments 20%-50%

c.         Long-term investment         Available for sale dbt securities

d,         Long-term investment         Available for sale dbt securities

e.         Short-term investment        Stock investment <20%

2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available-for-sale debt securities. Carperk had no available-for-sale debt securities prior to this year.

The journal entries will look as follows:

<u>General Journal                                               Debit ($)           Credit ($)  </u>

Fair value adjustment - Available-for-sale     47,981

Unrealized gain - Debt (w.1)                                                        47,981

<em><u>(To record the fair value adjustment for the portfolio of available-for-sale debt securities).  </u></em>

<u>Workings (w.1):</u>

No      Fair Value ($)       Cost ($)         Gain (loss) ($)

                    A                       B                   C = A - B

a.              453,116            416,850               36,266

c.             184,240            170,909                 13,331

d.           <u>   93,426   </u>        <u>   95,042 </u>                <u>  (1,616) </u>

Total      <u>  730,782 </u>        <u>  682,801 </u>            <u>   47,981 </u>

7 0
3 years ago
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capi
Alex777 [14]

The firm should decrease the amount of capital used.

Solution:

The wage rate is $12 per hour and capital is rented at $8 per hour.

The marginal product of labour is 45 units of output per hour and the marginal product of capital is 65 units of output per hour.

A manager hires labour and rents capital equipment in a very competitive

market.

The ratio of marginal product of labour and wage rate

= \frac{45}{12}

= 3.75

The ratio of marginal product of capital and rent

= \frac{65}{8}

= 8.125

If the cost ratio is higher, it means that the boss must minimize the volume of money involved in the manufacturing process.

5 0
3 years ago
Which statement is true about reporting receivables on the balance sheet?
MAVERICK [17]
<h3>Answer:</h3>

D. Allowance for Doubtful Accounts is shown as a deduction from Accounts Receivable on the balance sheet.

<h3>Explanation:</h3>
  • Balance sheet is a statement of account that shows the number of assets, liabilities, capital and net profit or loss in an organisation.
  • Receivables refers to the amount that the seller ios owed by the customers or buyers.
  • Therefore, receivables are current assets in a business and are listed on the left side of the balance sheet.
  • Allowance for doubtful accounts is listed as a deduction below the accounts receivable as it is a reduction of the total amounts on accounts receivable.
3 0
3 years ago
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