1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vika [28.1K]
3 years ago
10

Firm 1 and firm 2 are competing for a franchise. The present value of the net revenues generated by the franchise are equal to R

. Each firm’s probability of winning the franchise is given by its proportion of the total spent by the two firms on lobbying the local government committee that awards the franchise. That is, if I1 and I2 represent the lobbying expenditures of firms 1 and 2, respectively, then firm 1’s probability of winning is given by I1/(I1 + I2), while firm 2’s probability of winning is I2/(I1 + I2). If each firm assumes that the other firm’s spending is independent of its own, what is the equilibrium level of spending for each firm?
Business
1 answer:
kvasek [131]3 years ago
7 0

Answer:

Equilibrium level of spending = R

Explanation:

Firm 1 : I1 ( lobbying expenditure ) , P of firm 1 = I1/(I1 + I2 )

Firm 2 : I2( lobbying expenditure) , P of firm 2 = I2/(I1 + I2 )

The equilibrium level of spending for each firm will be = present value of net revenues that is being generated by the Franchise

i.e. equilibrium level of spending = R

You might be interested in
. Which of the following typically have the highest fees?
Usimov [2.4K]
The answer is Payday Lender.
Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. it's also any exercise that convinces a borrower to simply accept unfair phrases through misleading, coercive, exploitative or unscrupulous moves for a mortgage that a borrower would not want, does not want or can not have the funds for.
7 0
3 years ago
A shift from one key to another within the same composition is called
blagie [28]
A shift from one key to another within the same composition is called modulation. It is the act of changing from one tonal center to another. This process can be accompanied with a change in the key signature. There are four type of modulation namely Direct/phrase modulation, pump-up modulation, Truck-driver modulation and Pivot-chord modulation.
8 0
3 years ago
_____ best prepares team members to step in and take the place of a member who may temporarily or permanently leave the team.
gtnhenbr [62]
I believe the answer is Cross Training, hopefully im not to late...
8 0
4 years ago
Read 2 more answers
Japan limits the amount of foreign-grown rice that can be sold in that country by imposing a very high import tax. This protects
dlinn [17]

Answer:

Tariff

Explanation:

A Tariff is otherwise known as an import duties, it is the taxes imposed on goods that come from other countries into a particular country.  Tariff is imposed for so many reasons one of which is to protect local industries of the country i.e enabling local industries in the country to have profitability in their business and eliminating competitions from foreign organisation.

By imposing tariff, the rate of goods imported into a country will be reduced and this will encourage local production of goods and discourage importation.  

5 0
3 years ago
Read 2 more answers
The recommended length of a mission statement is fewer than​ _____ words. A. 75 B. 100 C. 25 D. 500 E. 300
laila [671]

Answer:

The correct answer is letter "B": 100.

Explanation:

The mission statement of a company reflects its goal related to the surrounding environment where the firm will take operations. Mission statements must be short and clear with fewer than 150 words if possible but if it can be comprised by 100 the result should be better.

3 0
3 years ago
Other questions:
  • Expectancy theory suggests that managers must recognize employees work for a variety of reasons, these reasons may change over t
    8·1 answer
  • The stockholder's annual report must includeSelect one:a. a statement of cash flows.b. an income statement.c. a balance sheet.d.
    7·1 answer
  • Michelle, an Italian fashion designer, sells her merchandise by exporting it to the United States, United Kingdom, and Brazil. A
    8·1 answer
  • A type of production that yields customized products or services for each customer is called
    8·1 answer
  • Which of the following best explains why companies like Amazon and Wal-
    8·1 answer
  • Suppose that a​ firm's only variable input is​ labor, and the constant hourly wage rate is ​$20 per hour. The last unit​ (hour)
    14·1 answer
  • Do you think a luxury brand can ever be called good value? Explain your answer
    9·1 answer
  • Tire production in the United States has been on the decline, in both absolute and relative terms. Imported tires are replacing
    13·1 answer
  • And i oop.................
    14·2 answers
  • Patrick and Mary wanted to become homeowners back in 2008 and applied for a loan from a mortgage lender. Patrick and Mary's comb
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!