Both Firm W and Firm H have a dominant strategy to advertise.
Explanation:
Dominant strategies, never despite what other competitors do, are treated similarly than others. In game theory, two forms of strategic supremacy exist:
-a strategy that is purely dominant is a strategy which provides the player with often better advantage, regardless of what the another player's strategy is ;
- a strategy that is weakly dominant, which gives all these other player's strategies the very same value, and which makes certain strategies more stringent.
Especially if one game is only weakly dominant (this means that it also does at least the same thing as any other strategy, but it just can in certain situations match other strategies, not beat them), and the same wages would apply to the player may be applied to more than one dominant strategy per player.
Answer:
b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
Explanation:
Sam is comparing the costs of two loans.
The principal amount of each loan is $5,000.
One is due in one year and the other is due in four years.
Both have the same stated rate of annual interest.
Two of the following are true:
<u>b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.</u>
Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
5% on 5,000 for 1 year = $250 but if paid for 4 years will be 250 x 4 = $1000
Answer:
Quantity demanded of B/percentage change in price of A.
Explanation:
Cross price elasticity of demand is calculated as follows:
= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A
Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.
For Substitute goods:
It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.
For complimentary goods:
It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.
Answer:
A. Debit: Bad Debt Expense 2,500
Credit: Allowance for Doubtful Accounts 2,500
250,000 x .01 = 2,500
B. Debit: Bad Debt Expense 2,750
Credit: Allowance for Doubtful Accounts 2,750
3,000 - 250 = 2,750
Answer:
the revised net operating income is $ 26,400
Explanation:
Effect the Changes on the Units, Selling Price and Fixed Cost as described on the Original Income Statement.
Revised Income Statement
Sales( (12,900 units x 2)× ($20 per unit×0.90)) $ 464,400
Variable expenses ( $10× (12,900 units x 2)) ($ 258,000)
Contribution margin $206,400
Fixed expenses (144,000 + $36,000 ) ($180,000)
Net operating loss $ 26,400
