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
In order to make sure that audiences can correctly identify which words you are using, it is necessary to make sure you have cor
Vladimir [108]

In order to make sure that audiences can correctly identify which words you are using, it is necessary to make sure you have correct Pronunciation.

8 0
3 years ago
Read 2 more answers
A well-conceived and communicated strategic vision ordinarily does not result in?
guajiro [1.7K]

Typically, stakeholders do not complain that the company is directionless after hearing a well-developed and expressed strategic vision.

<h3>What Is Vision, Exactly? And why is it so crucial for a leader to convey their vision?</h3>

The organization's desired achievement or future state is described by its vision. To motivate, define, and focus the effort, a vision must be communicated in order to fulfill its purpose.

One of your responsibilities as a leader is to inspire dedication to your organization's goal, as stated in our handbook Communicating Your Vision. You must convey the vision in a way that matters to people in order to accomplish this. You want the organization's members to embrace the vision and spread it to others.

The organization's vision needs to be communicated by the leaders in several different methods.

To know more about "Vision", visit: brainly.com/question/28327881

#SPJ4

7 0
1 year ago
At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufact
scoray [572]

Answer:

The correct answer to the following question is $36,000.

Explanation:

Given information  -

Units anticipated to be produced - 300,000 units

Variable cost - $150,000

Fixed cost - $600,000

Beginning inventory - 5000 units

Ending inventory  - 7000 units

Income under absorption costing - $40,000

Now under the absorption costing, rate of fixed overhead cost per unit -

Fixed cost / Number of units produced

= $600,000 / 300,000

= $2

In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -  

Fixed overhead rate per unit x number of units produced but not sold

= $2 x 2000 ( 7000 units - 5000 units )

= $4000

So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -

$40,000 - $4000

= $36,000 .

6 0
3 years ago
Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shar
kifflom [539]

Answer: Option (a) is correct.

Explanation:

Given that,

Dividend in 2016 = $20,000

Preferred Shares = 400

Par Value of Preferred Stock = 400 × 10 = $4000

Rate of Dividend of Preferred Stock = 5%

(a) Dividend to preferred Shareholders:

= Par Value of Preferred Stock × Rate of Dividend

= $4000  × 5%

= $200

(b) Dividend to Common Shareholders:

= Total Dividend - Dividend to Preferred Shareholders

= $20,000  - $200

= $19,800

6 0
2 years ago
Which of these are fixed expenses?
AysviL [449]

Answer:

car insurance, rent, student loan payments

Explanation:

Fixed expenses or fixed costs remain constant throughout a financial period. In the year under consideration, fixed expenses will have the same figures regardless of the production level.  Fixed costs contrast variable costs, which vary depending on the level of business activities.

From the list provided, car insurance, rent, student loan payments will likely remain the same in the financial period. The other expenses, such as pet needs, entertainment, public transportation costs, and gifts, are bound to be determined by production volumes.

3 0
2 years ago
Other questions:
  • Erica, a team manager, was known for heading projects with diligence and conscientiousness. However, she was insensitive and exc
    7·1 answer
  • What does intelligence mean? do you accept the use of the word in "business intelligence software tools," or do you think the us
    12·1 answer
  • If teamwork and support are high on your priority list, a _______ may be a poor choice for a business
    14·2 answers
  • Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with
    11·1 answer
  • Independent surveys suggest that companies cannot easily quantify the effects of diversity. How would you suggest that Alliant m
    6·2 answers
  • Jack has recently been hired as a risk management professional for Blithe Corporation. Blithe has a risk management program in p
    12·1 answer
  • in a based economy transaction require that each party have something the other desires increase market
    6·1 answer
  • Teel Printing uses two measures of activity, press runs, and book set-ups, in the cost formulas in its budgets and performance r
    10·1 answer
  • Does each Subway $5 Footlong cost the franchisee more than $5? Subway, the fast food restaurant franchise, recently announced it
    13·1 answer
  • Why is saving, spending and investing important? long summary
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!