If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorde
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Answer: Hello your question is poorly written attached below is the complete question
answer : Change in profits
= $55 , $55
Explanation:
From the Question( Nash equilibrium ) we can see that there four combination of charges
HP, Dell ($450, $450 ) : profit ( $100, $100 )
HP ,Dell ($450, $250 ) :
HP, Dell ( $250, $450 )
HP, Dell ( $250, $250 ) profit ( $45, $45 )
when lower price is adopted profit made = ( $45 , $45 )
when Higher price is adopted profit made = ( $100, $100 )
Hence The effect of matching prices on profits (relative to the Nash equilibrium without price matching)
Assuming HP and Dell coordinates
HP's profit will changes by = $100 - $45 = $55
Dell's profit will change by = $100 - $45 = $55
