Answer: Please refer to Explanation.
Explanation:
Two Companies. We shall call them A and B.
If A and B decide not to advertise, they both get $5,000,000.
If A advertises and B does not then A captures $3 million from B at a cost of $2 million meaning their payoff would be,
= 5 million - 2 million + 3 million
= $6 million.
A will have $6 million and B will have $2 million as $3 million was captured from them. This scenario holds true if B is the one that advertises and A does not.
If both of them Advertise, they both reduce their gains by $2 million while capturing $3 million from each other so they'll essentially both have just $3 million if they both decide to advertise.
With the above scenarios, it is better for both companies to ADVERTISE if there is NO COLLUSION. This is because it ensures that they do not get the lowest payoff of $2 million if the other company decides to advertise and they do not.
However, if they DO COLLUDE. They must both decide that NONE of them SHOULD ADVERTISE and this would leave them with their original $5 million each which is a higher payoff than the $3 million they will both receive if they were both advertising.
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If there is no unity in a shared system, then diversity can become chaos.
Taylor's rule puts double weight on closing the unemployment gap in comparison to the inflation gap.
<h3>What is inflation?</h3>
Inflation is the scenario where the price of goods or services is increased in such a way that results in decreasing the purchasing power of people.
The focus of Taylor's principle is to close the gap in unemployment by much double weight in contrast with the gap in inflation. It wants that the unemployment gap should be twice the inflation gap at the time of closing.
Therefore, the twice weight should be put up on unemployment as suggested by the rule of Taylor.
Learn more about Taylor in the related link:
brainly.com/question/461247
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Answer:
will probably indicate less than $2 million in merchandise on hand.
Explanation:
Perpetual inventory system is when information regarding quantity and availability in inventory of a business is continuously updated. Sale or purchase big inventory is recorded immediately with the use of computerised point of sale systems.
The department store uses a perpetual inventory system. At year-end, it shows a balance in the merchandise inventory account of $2 million. The physical inventory will probably be less than $2 million because it adjust its records to make the recorded inventory amount agree with the actual inventory on hand at end of year.
