Answer: B. Both firm A and firm B choose the low price.
Explanation:
Both firm A and Firm B will choose the low price and make profits of $3 if there is no cooperation.
This is because at any other price, the other firms could go with the low strategy and get more profit.
For instance, if Firm A is using a low price and Firm B is using a high price then Firm A makes profit of $10 whilst B makes $1.
Conversely, if Firm B charges a low price and A a high price, A will make paltry profits of $1 while B would make $10.
Their best option therefore is to both pick the low price and make $3.
If they were cooperating they could both charge a high price and make $5 each.
Your question was incomplete so I attached the payoff matrix.
Answer:
94% and 2934
Explanation:
The computation of the four-firm concentration ratio for this industry is
= (Total four firms market shares in an industry ) ÷ (Total firm market shares in an industry)
= (45% + 22% + 17% + 10%) ÷ (45% + 22% + 17% + 10% + 6%)
= 94% ÷ 100%
= 94%
Now the Herfindahl Index is the sum of square of all firm market share
= 45^2 + 22^2 + 17^2 + 10^2 + 6^2
= 2934
Answer:
Working with real estate agent brochure and agreement form.
Answer:
Online bill pay helps you organize bills and keep track of due dates. It also makes it easier to see where your money is going, so you can make sure you have enough funds available to cover each payment. You receive and pay your bills all through your bank — one list, in one place.
Explanation:
