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Marina CMI [18]
3 years ago
8

Suppose that each of the two firms has the independent choice of advertising its product or not advertising. If neither advertis

es, each gets $10 million in profit; if both advertise, their profits will be $5 million each; and if one advertises while the other does not, the advertiser gets a profit of $15 million while the other gets a profit of $2 million. According to game theory, if the firms could collude to maximize profit:
a. both may or may not advertise.

b.both will advertise.

c. one will advertise and the other will not.

d. neither will advertise.

Business
1 answer:
raketka [301]3 years ago
6 0

Answer:

d. neither will advertise.

Explanation:

A game theory is used to analyse the choices of firms in an oligopoly.

A collusion is when two or more firms come together to make a decision usually concerning price.

If both firms advertise, the profit is less than when both firms don't advertise. Therefore, if both firms collude, they would agree not to advertise in order to maximise profits.

But the Nash equilibrium would be for each firm to advertise.

Nash equilibrium is the best strategy for a player in a game regardless of what the other player plays.

I hope my answer helps you.

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Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of
bagirrra123 [75]

Answer:

Applied manufacturing overhead is $4,000

Explanation:

Given,

Total manufacturing overhead = $200,000

Activity level = 10,000 DLH

Predetermined overhead rate = \frac{Manufacturing\ overhead\ cost}{Activity\ level}

=\frac{200,000}{10,000}

=$20

Manufacturing overhead applied = predetermined rate × time required

                                                       = 20 × 200

                                                       = $4,000

Therefore, manufacturing overhead of $4,000 is applied to the job.

3 0
2 years ago
Joseph is instructed by his employer, Helen, to go to the local donut shop during his lunch break and purchase six-dozen donuts
salantis [7]

Answer:

B. False.

Explanation:

Helen instructed Joseph during his active working hour does not matter if he is on his lunch break or not, so Joseph is entitled to workers compensation.

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3 years ago
The aggregate demand curve
laiz [17]

Answer:

<u>B. shows planned purchase rates of goods and services at various price levels.</u>

Explanation:

  • The aggregate demand is the total demand for final goods and services in the economy over a given period of time. And is often distinguished as the effective demand curve. That is the demand for the GDP of the nation.
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Jerry has $50,000 in his savings account and the average new car price is $23,000. does jerry have a demand for a new car? quest
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The answer is ‘not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car.’ Because willingness goes hand in hand with this scenario. Many people has the ability to buy things since they have the money for it but unfortunately, the lack the willingness to buy something can affect this scenario. If he lacks willingness, he won't able to buy the new car. The question here is, is he willing to buy the car?
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3 years ago
what is a basic premise of the acquisition method regarding accounting for a noncontrolling interest?
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What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.


D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
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