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3 years ago

Implications of game theory

Business

1 answer:

MrRa [10]3 years ago

4 0

Answer:

Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .

Limitations of Game Theory :

The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.

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The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:

Dvinal [7]

Answer:

1. $132,600

2. $7,700

3. $25,600

Explanation:

1. Calculation to determine Total current assets

First step is to calculate the Current liabilities using this formula

Current liabilities = salaries payable + accounts playable + accrued interest

Let plug in the formula

Current liabilities= 19000 + 58000 + 1000

Current liabilities= 78000

Now let calculate the Total current assets using this formula

Total current assets = current ratio * current liabilities

Let plug in the formula

Total current assets = 1.7* 78000

Total current assets = $132,600

Therefore Total current assets is $132,600

2. Calculation to determine Short-term investments

Using this formula

Short term investments = Current assets - [cash + accounts receivables + inventory]

Let plug in the formula

Short term investments = 132,600 - [6900 + 39,000 + 79,000]

Short term investments = $7,700

Therefore Short term investments will be $7,700

3. Calculation to determine the Retained earnings

Using this formula

Current assets + fixed assets = Current liabilities + Long term liabilities + paid in capital + retained earnings

Let plug in the

132,600 + 215,000 = 78,000 + 49,000 + 195,000 + Retained earnings

347,600 = 322,000 + retained earnings

Retained earnings = 347,600 - 322,000

Retained earnings = $25,600

Therefore Retained earnings will be $25,600

8 0

3 years ago

The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals:

Over [174]

Based on the number of people that are employed and those who are unemployed in this town, the unemployment rate is 14.4%.

<h3>What is the unemployment rate?</h3>

The unemployment rate can be found by the formula:
= Employed people / (Unemployed + Employed people)

Solving gives:

= (11,000) / (65,400 + 11,000)

= 11,000 / 76,400

= 14.4%

In conclusion, the rate is 14.4%.

Find out more on the unemployment rate at brainly.com/question/13280244.

7 0

2 years ago

________ products are less frequently purchased consumer products and services that customers compare carefully on suitability,

Lostsunrise [7]

Answer:

A) Shopping products

Explanation:

The reason is that the people who is spending money on product that he will wear or carry it with him / her definitely spends higher time in appraising the quality, the style he or she desires, price charged according to his purchasing power and is the product fits best or not. So these all things are considered by the person who is interested in shopping products.

4 0

3 years ago

15 pts!! What is the advertising technique of glittering generalities? Describe this technique.

pochemuha

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8 0

3 years ago

Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for

CaHeK987 [17]

Answer:

1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board with US Share as $0 and German Share as $32.80.

2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board with US Share as $24 and German Share as $15.20. The transfer price as US market price is more effective for the Alpha Communications.

3:a- If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.

3:b- If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board with US Share as $24 and German Share as $36.

Explanation:

1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board. The calculations are as follows:

US Operation:

Sales Revenue(Price set to variable manufacturing cost): $130

Variable Manufacturing Cost: : ($130)

_________________________________________________

Contribution Margin : $ 0

German Operation:

Selling Price: $360

Transfer Price: ($130)

Additional Cost: ($115)

Shippng Cost: ($20)

Import Duty (10% of Transfer Price): 10% x 130=0.1x130= ($13)

_________________________________________________

Income Before Tax: $82

Income Tax (60% of Income Before Tax):60%x82 ($49.20)

___________________________________________________

Income After Tax $32.80

2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board. The transfer price as US market price is more effective for the Alpha Communications. The calculations are as follows:

US Operation:

Sales Revenue(Price set to variable manufacturing cost): $170

Variable Manufacturing Cost: : ($130)

_________________________________________________

Income Before Tax : $ 40

Income Tax (40% of Income Before Tax):40%x40 :($16)

_________________________________________________

Income After Tax: : $24

German Operation:

Selling Price: $360

Transfer Fee: ($170)

Additional Cost: ($115)

Shippng Cost: ($20)

Import Duty (10% of Transfer Price): 10% x 170=0.1x170= ($17)

_________________________________________________

Income Before Tax: $38

Income Tax (60% of Income Before Tax):60%x38 ($22.80)

___________________________________________________

Income After Tax $15.20

Total Income By Alpha Communication: $24+$15.20=$39.20

3-a: If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.

At the lower tranfer price of 130, the total impact of transfer is given by

Transfer Price: $130

Shippng Cost: $20

Import Duty (10% of Transfer Price): 10% x 130=0.1x130= $13

___________________________________________________

Total Impact $163

It is more than the local available price, Thus the company should purchase their circuit board locally.

3-b If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board.

US Operation:

Sales Revenue(Price set to variable manufacturing cost): $170

Variable Manufacturing Cost: : ($130)

_________________________________________________

Income Before Tax : $ 40

Income Tax (40% of Income Before Tax):40%x40 :($16)

_________________________________________________

Income After Tax: : $24

German Operation:

Selling Price: $360

Local Circuit Board Price ($155)

Additional Cost: ($115)

_________________________________________________

Income Before Tax: $90

Income Tax (60% of Income Before Tax):60%x38 ($54)

___________________________________________________

Income After Tax $36

Total Income By Alpha Communication: $24+$36=$60.0

3 0

3 years ago