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
Lyrx [107]
3 years ago
7

At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg’s was quoted as saying,

" . . . for the past several years, our individual company growth has come out of the other fellow’s hide." Kellogg’s has been producing cereal since 1906 and continues to implement strategies that make it a leader in the cereal industry. Suppose that when Kellogg’s and its largest rival advertise, each company earns $1 billion in profits. When neither company advertises, each company earns profits of $9 billion. If one company advertises and the other does not, the company that advertises earns $49 billion and the company that does not advertise loses $4 billion. For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising?
Business
1 answer:
larisa86 [58]3 years ago
6 0

Answer:

for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

Explanation:

Using the below expression to determine the range of interest rates could these firms use trigger strategies to support the collusive level of advertising; we have:

\frac{current \ period's \ profit \ of \ the \ cheating \ firm \ - \  firm's \  profit \  in \ each \ period \ under \ collision  }{ firm's \ profit \ in \  each \ period \ under \ collision \ - \ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } \leq \frac{1}{i}

where;

the \ current \ period's \ profit \ of \ the \ cheating \ firm \ = \ 49

firm's \  profit \  in \ each \ period \ under \ collision  = \  9

\ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } = \ 1

Then :

= \frac{49-9}{9-1} \leq \frac{1}{i}

= \frac{40}{8}  \leq \frac{1}{i}

i \leq \frac{8}{40}

i \leq 200%

Thus; for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

You might be interested in
Antonio has $11.00 to spend on a lunch consisting of hamburgers ($1.50 each) and French fries ($1.00 per order). Antonio's satis
saveliy_v [14]

Answer: <em>$4. 71 hamburger and $6.29 French fries. </em>

Explanation:

Total spendable income of Antonio = $11.00  

1 hamburger = $1.50

1 order of French fries = $1.00

Utility maximization function: U(x1, x2) = x1x2 i.e. 1 hamburger and 2 orders of French fries

Using the Utility maximization function: U(x1, x2) = $1.50 + $2.00

                                                                                      = $3.50 per lunch  

Therefore the customer will purchase hamburger worth of $(1.50 x 11.00/3.50) = $4. 71

And French fries orders worth of $(2.00 x 11.00/3.50) = $6.29

<em>Antonio will maximize his satisfaction by purchasing $4. 71 hamburger and $6.29 French fries. </em>

3 0
4 years ago
Suppose the federal reserve wants to decrease the money supply by $400 billion. if the reserve requirement (rr) is 0.2, calculat
svetlana [45]

Two main modifications be made to guard the public, avoid bank bailouts, and expand banking protection and soundness.

<h3>What is the change in required reserves?</h3>

Increasing the (reserve requirement) ratios reduces the extent of deposits that can be supported with the aid of a given level of reserves and, in the absence of different actions, reduces the money stock and raises the price of credit.

<h3>What are the three dreams of the Federal Reserve?</h3>

It is the Federal Reserve's actions, as a central bank, to acquire three dreams distinct by using Congress: maximum employment, secure prices, and average long-term hobby rates in the United States.

Learn more about federal reserves here:

<h3>brainly.com/question/25817380</h3><h3 /><h3>#SPJ4</h3>
4 0
2 years ago
hen considering whether a holder took the negotiable instrument in good faith, the court looks only at the
Ilya [14]

Answer:

Explanation:

nsei kkkkkkkkkkkkkkkkkkkkkkkkkkao

8 0
3 years ago
Read 2 more answers
Which term describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months
Advocard [28]

Complete Question:

Which term describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders?

Group of answer choices.

A. Critical infrastructure category

B. Unstructured threat category

C. Highly structured threat category

D. Structured threat category

Answer:

B. Unstructured threat category.

Explanation:

An unstructured threat category is a term which describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders.

3 0
4 years ago
The difference between a credit card and a debit card is that when you use a credit card, the amount of money you spend is autom
Nastasia [14]
False, a credit card doesn’t deduct from your checking account nor is it linked to your checking account only a debit card deducts from your checking account.
3 0
4 years ago
Read 2 more answers
Other questions:
  • Which one of the following items would you be most likely to keep in a database ?
    15·2 answers
  • The money price of a half gallon of milk a half gallon of milk is ​$ 1.80​, and the relative price of a half gallon of milk a ha
    9·1 answer
  • In late April, the Acme Construction Co. submitted a $1,200,000 progress billing on a construction contract.On May 2, the bill w
    12·1 answer
  • Global Enterprises has spent $134,000 on research developing a new type of shoe. For this shoe to now be manufactured, the firm
    12·1 answer
  • Allen Lumber Company had earnings after taxes of $750,000 in the year 2015 with 300,000 shares outstanding on December 31, 2015.
    14·1 answer
  • What tendency is most likely manifest in the following situation? An engagement team performed a substantive analytical procedur
    15·1 answer
  • A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to:____
    15·1 answer
  • A company sold merchandise with a cost of​ $217 for​ $390 on account. The seller uses the perpetual inventory system. The entry
    12·1 answer
  • From the following ledger balances, prepare a trial balance for the Whispering Winds Corp. at June 30, 2022. All account balance
    7·1 answer
  • Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufa
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!