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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

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You work as an assistant coach on the university basketball team and earn $13 per hour. One day, you decide to skip the hour-lon
Scrat [10]

Answer:

$22

Explanation:

The total cost of skipping practice and going to the carnival will be computed by adding the forfeited earnings from practice plus the carnival admission fee.

Total cost = $13 + $9 = $22.

Therefore, if the practice had not been skipped and the carnival not attended, $22 would have been saved.

6 0
3 years ago
Carla VistaInc. leased a new crane to Martinez Construction under a 5-year, non-cancelable contract starting January 1, 2020. Te
Marrrta [24]

Answer:

Lessee's Entries:

Rent expense (Dr.) $45,500

Cash (Cr.) $45,500

Lessor's Entries:

1. Property Tax expense (Dr.) $2,000

Maintenance and Repair Expense (Dr.) $650

Insurance Expense (Dr.) $500

Accounts Payable (Cr.) $3,150

2. Depreciation Expense (Dr.) $ 29,285

Accumulated  Depreciation (Cr.) $29,285

3.Cash (Dr.) $45,500

Rent Revenue (Cr.) $45,500

Explanation:

The lease is considered as an operating lease as it does not have bargain purchase option and renewal options. The property ownership is not transferred in this lease.

Depreciation expense:

[ Cost - Salvage Value ] / 7

220,000 - 15000 / 7

4 0
2 years ago
Ow did easy consumer credit help the u.s. economy during the early 1920s?
alexandr1967 [171]
People bought more goods and created high demand for new products
5 0
3 years ago
In what areas is Leslie’s understanding hurting her budget?
earnstyle [38]

Answer:

<h2>Leslie's budget is hurting in the areas of transportation, groceries, phone and dining out. </h2>

Explanation:

<h2> For transportation, money is required for each da.</h2><h2 /><h2>PURPLE YOU ALL</h2><h2 /><h2 />
3 0
3 years ago
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developi
expeople1 [14]

Answer:

First calculate total machine hours

1500 + 1500 + 4500 = 7500 total machine hours

personnel   = 1500/7500 x 4,800

printing   = 1500/7500 x 4,800

developing = 4500/7500 x 4,800

for personnel:

500 printing + 3,500 developing = 4,000

For Departments:

printing        = 500/4,000   x  15,760

developing   = 3,500/4,000x 15,760

6 0
2 years ago
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