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3 years ago

Solving for dominant strategies and the Nash equilibrium

Business

1 answer:

hichkok12 [17]3 years ago

5 0

Answer:

The dominant strategy is for Deborah to choose left.

Carlos chooses right while Deborah chooses left.

Explanation:

Nash equilibrium is a state where both the participants gain from the payoff matrix by choosing a strategy which is beneficial for both of them. The Deborah is in a state that she will gain when she chooses left. Carlos is indifferent as she can choose right also but to be in Nash equilibrium Carlos should choose right and Deborah should go with left.

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A machine with a cost of $61,800 has an estimated residual value of $4,986 and an estimated life of 5 years or 18,970 hours. Wha

Leto [7]

Answer:

$14,832

Explanation:

Depreciation charge = 2 x SLDP x BVSLDP

where,

SLDP = 100 ÷ useful life = 20 %

and

BVSLDP = Cost or Net Book Value

therefore,

1st year

Depreciation charge = 2 x 20 % x $61,800 = $24,720

2nd year

Depreciation charge = 2 x 20 % x ($61,800 - $24,720) = $14,832

conclusion

the amount of depreciation for the second full year is $14,832

8 0

3 years ago

Suppose that when the price for Good A increases by 7 percent, the quantity demanded for that product decreases by 2 percent. Ac

Monica [59]

Answer:

The own price elasticity is 0.28.

The demand for good a is inelastic.

Explanation:

The price elasticity of demand for a product is the change in the quantity demanded of a product due to a change in its price.

When the price of good A increases by 7% the quantity demanded of that product decreases by 2%.

The own price elasticity of demand

= $\frac{change\ in\ quantity\ demanded}{change\ in\ price}$

= $\frac{2}{7}$

= 0.28

The elasticity of demand is less than 1, this implies that demand is inelastic.

A greater change in price is leading to a smaller change in quantity demanded.

7 0

4 years ago

The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects tha

labwork [276]

Answer:

$49.01 per Share

Explanation:

We can find the value of the unit share of company that will be dissolved at the end of year 2 by using the following formula:

Current Price per Share = Value of Firm Today (Step1) / Number of Shares

= $1,862,345 / 38,000 shares

= $49.01 per Share

Step 1: Find the value of the firm in today's price by using the discounting technique

Value of Firm Today = Cash Flow for Year 1 / (1+r)^1 + Cash Flow for Year 2 / (1+r)^2

= $860,000 / (1 + 11%)^1 + $1,340,000 / (1 + 11%)^2

= $774,774 + $1,087,571

= $1,862,345

7 0

3 years ago

Publicly owned and operated schools, federally mandated health care coverage, and tax incentives for business are all examples o

katrin [286]

Answer:

A. socialist elements in the US Economy

Explanation:

Socialism is shared costs and shared resources. While the US economy is not socialistic, it does have elements of socialism through certain government programs.

8 0

3 years ago

Read 2 more answers

When the weighted average cost method is used in a perpetual inventory system, a weighted average unit cost for each item is com

Wittaler [7]

Answer:

Ending inventory $210

Explanation:

Perpetual inventory system:

Cost of Goods Sold and ending inventory are calcualte after every sale.

Inventory available at the moment of sale:

Beginning inventory of 15 units at a cost of $12 = $180

June 5, Jacobs purchased 10 units at $13 per unit = $130

On June 12, it purchased 20 units at $14 per unit = $280

units for sale: 45 cost of goods available for sale 590

we sold 30 units. Units at ending Inventory: 45 - 30 = 15

We are asked for FIFO method:

first units are sold and newest are inventory so, ending invenotry will be compose of units fro mthe nearest purchase which is June 12th

15 units x $14 each = $ 210

6 0

4 years ago