Two firms produce identical products at zero cost, and they compete by setting prices. If each firm charges a low price, then both firms earn profits of zero. If each firm charges a high price, then each firm earns profits of $30. If one firm charges a high price and the other firm charges a low price, the firm that charges the lower price earns profits of $50 and the firm charging the higher price earns profits of zero. Explain and show your work:
A. Which oligopoly model best describes this situation?
B. Write this game in normal form. ther firm.
C. Suppose the game is infinitely repeated. Can the players sustain the "collusive outcome" as a Nash equilibrium if the interest rate if 50 percent?
Answers: 3
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Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.
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In a recent annual report, apple computer reported the following in one of its disclosure notes: "warranty expense: the company provides currently for the estimated cost for product warranties at the time the related revenue is recognized." this note exemplifies apple's use of: (a) conservatism.(b) matching. (c) realization principle. (d) economic entity.
Answers: 2
Business, 23.06.2019 12:00
The "ideal" business, according to richard buskirk of the university of southern california: has many diverse employees.has a few, carefully selected employees.has many homogeneous employees.is a "one-man show".
Answers: 2
Two firms produce identical products at zero cost, and they compete by setting prices. If each firm...
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