subject
Business, 05.05.2020 08:18 gimpypeach

5. To advertise or not to advertise Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: Pop Hop Advertise Doesn't Advertise Fizzo Advertise 10, 10 18, 2 Doesn't Advertise 2, 18 11, 11 For example, the upper right cell shows that if Fizzo advertises and Pop Hop doesn't advertise, Fizzo will make a profit of $18 million, and Pop Hop will make a profit of $2 million. Assume this is a simultaneous game and that Fizzo and Pop Hop are both profit-maximizing firms. If Fizzo decides to advertise, it will earn a profit ofmillion if Pop Hop advertises and a profit ofmillion if Pop Hop does not advertise. If Fizzo decides not to advertise, it will earn a profit ofmillion if Pop Hop advertises and a profit ofmillion if Pop Hop does not advertise. If Pop Hop advertises, Fizzo makes a higher profit if it chooses . If Pop Hop doesn't advertise, Fizzo makes a higher profit if it chooses . Suppose that both firms start off not advertising. If the firms act independently, what strategies will they end up choosing?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 13:30
For june, gold corp. estimated sales revenue at $600,000. it pays sales commissions that are 4% of sales. the sales manager's salary is $285,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. how much are budgeted selling expenses for the month of july if sales are expected to be $540,000.
Answers: 3
question
Business, 22.06.2019 16:00
If the family’s net monthly income is 7,800 what percent of the income is spent on food clothing and housing?
Answers: 3
question
Business, 22.06.2019 19:30
One of the benefits of a well designed ergonomic work environment is low operating costs is true or false
Answers: 3
question
Business, 22.06.2019 21:30
The year-end financial statements of calloway company contained the following elements and corresponding amounts: assets = $34,000; liabilities = ? ; common stock = $6,400; revenue = $13,800; dividends = $1,450; beginning retained earnings = $4,450; ending retained earnings = $8,400. based on this information, the amount of expenses on calloway's income statement was
Answers: 1
You know the right answer?
5. To advertise or not to advertise Suppose that Fizzo and Pop Hop are the only two firms that sell...
Questions
question
Arts, 16.09.2019 16:20
Questions on the website: 13722363