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
frez [133]
2 years ago
15

Suppose that Under Armor and Nike are the sole producers of a particularly comfortable athletic shoe. The two firms currently ch

arge the same price for their products. If neither firm reduces the price of its particularly comfortable athletic shoe, each firm earns $30 million in profit. If both firms reduce their prices, then each firm will earn $8 million in profit. If one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $70 million while the other firm will earn a profit of $2 million. Assuming that collusion is not a possibility, the Nash equilibrium occurs when ____________
a. Nike will reduce its price and Under Armor will maintain its current price
b. both firms will reduce their price.
c. Under Armor will reduce its price and Nike will maintain its current price
d. both firms will maintain their current price.
Business
1 answer:
gayaneshka [121]2 years ago
7 0

Answer:

b. both firms will reduce their price.

Explanation:

The Nash equilibrium is a decision-making theorem that lies inside the game theory where the player could attain the expected result by not deviating to the beginning strategy. In this, the strategy of the each player is optimal at the time when the other player decisions are relevant

So as per the given situation, both the firm should decrease their price

hence the option b is correct

You might be interested in
Asteroid Industries accumulated the following cost information for the year:
frez [133]

Answer:

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

Explanation:

Factory overhead costs are the costs that are not directly attributable to the production. This would include all the costs except for the direct materials and direct labor.

the total factory overhead costs would be,

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

These costs are then allocated using the appropriate cost base to all the units produced.

Hope that helps.

7 0
3 years ago
Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. The
Eddi Din [679]

<u>Answer:</u> Option B

<u>Explanation:</u>

Revved Rider company is the market leader as the company possess a superior engine technology that is not owned by other companies. This proves that the company has competitive advantage of technology over the competitors in the market.

Competitive advantage means having an advantageous quality which the other companies do not have in the market. When a company has competitive advantage it can become a price leader or market leader. It also becomes the consumer's most preferred company when compared to other companies.

5 0
3 years ago
Nelson Industries makes widgets using a two-step process that involves machining first and assembly second. In the Machining Dep
alexira [117]

Answer:

12,600

Explanation:

Concept of Equivalent units of production measures the number of units in terms of percentage completion in input elements of the process.

<u>The equivalent units of production for materials</u>

Note : all materials are issued at the beginning of the process, therefore materials are 100% complete in both Widgets transferred out and Ending widgets.

Calculation :

transferred out (8,600 × 100%)     = 8,600

ending inventory  (4,000 × 100%) = 4,000

total                                                 = 12,600

Therefore,  the equivalent units of production for materials in the Machining Department is 12,600.

4 0
2 years ago
Suppose you used the Copy and then the Paste command to copy the contents of cells A1 to cell B1,
GrogVix [38]

Answer:

Click paste without formatting

Explanation:

3 0
3 years ago
The interest rates for treasury notes are greater than for T-bills because of the longer maturity dates. A. True B. False
Brrunno [24]

Answer: true

Explanation:

7 0
3 years ago
Other questions:
  • In market economy a high price is a signal for Group of answer choicesproducers to supply less and consumers to buy more produce
    5·1 answer
  • This chapter discusses many types of costs: opportunity cost, total cost, fixed cost, variable cost, average total cost, and mar
    8·1 answer
  • Izzy Division of Marine Boats Corporation had the following results last year (in thousands). Sales $4,700,000​ Operating income
    6·1 answer
  • The historical cost principle requires that when assets are acquired, they be recorded ata. appraisal value.b. cost.c. market pr
    10·2 answers
  • On January 2, Year 3, Lake Mining Co.’s board of directors declared a cash dividend of $400,000 to shareholders of record on Jan
    11·1 answer
  • An increase in input prices causes:___________
    9·1 answer
  • Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common sto
    9·1 answer
  • Steve manages product design and development at a toy company. The junior managers who report to him tell him that new complemen
    11·1 answer
  • Explain the difference between a board meeting, a committee meeting and a staff meeting​
    6·1 answer
  • Assignment, write a narrative essay. Your essay should address how the key elements of organizational culture impact human resou
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!