Beta inc. offers to buy 25 screwdrivers from industrial hardware for $75. industrial responds, “we have the screwdrivers you wish to purchase, but the price is $80.” beta replies, “no, we can find them cheaper somewhere else.” industrial now responds, “we accept your offer of 25 screwdrivers for $75.” do they have a contract? a. no, industrials counteroffer terminated betas offer. b. no, beta never made an offer since shipment terms were not included. c. yes, beta made a firm offer. d. yes, industrial was merely attempting to negotiate.

Consider two cigarette companies, pm inc. and brown inc. if neither company advertises, the two companies split the market and earn $50 million each. if they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. yet if one company advertises while the other does not, the one that advertises attracts customers from the other. in this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million. if these two companies collude and agree upon the best joint strategy, a. neither company will advertise. b. both companies will advertise. c. pm inc. will advertise but brown inc. will not. d. brown inc. will advertise but pm inc. will not.