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Aleksandr [31]
3 years ago
5

e payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing

in new capital or not investing in new capital. Firm B Invest Not Invest Firm A Invest 20 for A 70 for A 20 for B 5 for B Not Invest 5 for A 50 for A 70 for B 50 for B Firm A’s dominant strategy is to ______, and Firm B’s dominant strategy is to ______.
Business
1 answer:
Harman [31]3 years ago
7 0

Answer:

Invest

invest

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing

firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.

Thus the option that would yield the highest payoff is for both firms to advertise.

this is an example of prisoners dilemma

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Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the
Travka [436]

Answer:

The correct entry is to reverse the entry on December 3rd

Dr Salaries and Wages expenses of $27,000

Cr Salaries and Wages payable of $27,000

Explanation:

During the time of the accrued entry, which is on December 31st

the company registered

Dr Salaries and Wages PAYABLE of $27,000

Cr Salaries and Wages EXPENSES of $27,000

It was just an accrued entry to be able to identify the expenses to the balance sheet, but currently on the original expenses on January 3rd, the entry is reverse, then the real or main expenses is recorded in the balance sheet.

Dr Cash of $47,000

Cr Salaries and Wages EXPENSES of $47,000

7 0
3 years ago
Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal
VMariaS [17]

Answer: $81,060 in August and $80,850 in September

Explanation: Please find attached a table.

August 86,800 17,360 38,500 25,200 81,060

September 91,000 18,200 43,400 19,250 80,850

8 0
3 years ago
Many automobile companies have custom options available for disabled people.
bazaltina [42]
<span>True. Many automobile companies offer adapted cars for disabled people, for example offering adjusted hand controls, altering access to the vehicle so it is wheelchair accessible or adjusting the space in the back of the vehicle so a wheelchair or mobility scooter can fit.</span>
8 0
3 years ago
A company’s retained earnings increased $375,000 last year and its assets increased $973,000. The company declared a $79,000 cas
Alex Ar [27]

Answer:

C. $454,000.

Explanation:

We know that

The ending balance of retained earnings = Opening balance of retained earnings + net income - dividend paid

$375,000 = $0 + net income - $79,000

So, the net income would be

= $375,000 + $79,000

= $454,000

The ending balance of retained earnings - Opening balance of retained earnings is also known as increase in retained earning

6 0
3 years ago
On January 1, 2015, East Lansing, Inc, issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually.
Trava [24]

Answer:

The answer is option D

Explanation:

The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.

First we need to determine the semi annual coupon payment, periods and YTM.

Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000

Semi annual periods = 5 * 2 = 10

Semi annual YTM = 0.08 * 6/12 = 0.04

Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04]  +  2000000 / (1+0.04)^10

Bond Price = $2162217.916

The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.

5 0
3 years ago
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