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aivan3 [116]
2 years ago
9

Suppose there are only two firms that sell Blu-ray players, Movietonia and Videotech. The following payoff Matrix shows the prof

it in millions of dollars each company will earn depending on whether it sets a high or low price for its players. For example the lower left cell shows that if Movietonia prices low and Videotech prices high, Movietonia earn a profit of $19 million and Videotech will earn a profit of $4 million. Assume this is a simultaneous game and that Movietonia and Videotech are both-profit-maximizing firms.
Videotech
Movietonia high price low price
high price 10, 10 4, 19
low price 19, 4 6, 6

If Movietonia prices high, Videotech makes more profit if it chooses a _____, and if Movietonia prices low, Videotech makes more profit if it chooses a _____.
If Videotech prices high, Movietonia makes more profit if it chooses a _____, and if Videotech prices low, Movietonia makes more profit if it chooses a _____.
Considering all of the information given, pricing high _____ a dominant strategy for both Movietonia and Videotech.

If the firms do not collude, what strategies will they end up choosing?

a. Movietonia will choose a high price and Videotech will choose a low price.
b. Movietonia will choose a low price and Videotech will choose a high price.
c. Both Movietonia and Videotech will choose a high price
d. Both Movietonia and Videotech will choose a low price

The game between Movietonia and Videotech is an example of the prisoner's dilemma.
i. True
ii. False
Business
1 answer:
Karolina [17]2 years ago
6 0

Answer:

From the given Matrix we can see that if videotech is selecting a high price, movietonia has a higher profit when it is charging a low price and this profit is 18. Similarly when videotech is selecting a lower price movietonia again has a higher profit when it is selecting a lower price which is 10. This indicates that movie tonia has a dominant strategy of selecting a low price.

If movietonia is selecting a high price videotech has a a higher pay off of 18 when it is selecting a low price. In case movietonia is selecting a low price videotech again has a higher profit when it is selecting a low price and this profi is 10.

Therefore videotech and movietonia both have dominant strategy of selecting a low price and this implies that low price, low price will be the Nash equilibrium.

In case the two firms are not colluding, both of them will choose a low price.

This is definitely an example of business dilemma game. The statement is true.

Explanation:

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Answer:

6) H0: μ≥ 7.4 versus H1: μ< 7.4

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5 0
2 years ago
Wu Production Company, which uses activity-based budgeting, is in the process of preparing a manufacturing overhead budget. Whic
creativ13 [48]

Answer:

Option which would likely appear on that budget will be:

Batch level costs: production setup.

Explanation:

Here the company uses activity based budgeting is a management accounting tool which new year budget is only seen by not considering the previous year records.

 Activity based budgeting which  is  a budgeting method in which firstly the overhead costs are being calculated and the the budgets gets created.

Batch-level cost is a cost which is not associated with any given specific individual units but is associated with a group of units.

For example, to set up a production run the cost incurred is associated with the batch of goods that are produced subsequently.

Another example can be be procurement costs. The expenses associated with the procurement costs include the  ordering of direct materials, paying suppliers and receiving goods.

Since all of the expenses are related to the orders placed numbers, they must be allocated not to an individual product but to group of unit.

6 0
2 years ago
The manhawkin fund has an expected return of 16% and a standard deviation of 20%. the risk-free rate is 4%. what is the reward-t
ArbitrLikvidat [17]
We know that expected return is 16%. The standard deviation is 20%. And in addition, the risk-free rate is 4%. Denote with x: expected return, "Y": the risk-free rate and sigma: standard deviation. The reward-to-volatility ratio is(x-y) / (sigma) = (16-4) / 20 = .6
5 0
2 years ago
Tom is a loan officer that persuades Jerry to sign up for an exotic mortgage that turns out to be very expensive for him and pro
IgorLugansk [536]

Answer: is legal but ethically questionable

Explanation:

Th information given in the question is an example of an action that is legal but ethically questionable.

This is because exotic mortgage will be profitable for the mortgage firm and the loan officer will benefit from these but on the other hand, Jerry did not make the best financial decision as he may feel the impact of the decision in a negative way. Even though what Tom did is legal, ethically, it is wrong.

5 0
2 years ago
to derive a competitive advantage, firms can properly configure hr practices to drive ________ which leads to ________.
Mariulka [41]

When firms configure it HR practices to drive <u>employees</u><u> </u>which leads to improved <u>Firm performance</u>, then the firm will derive competitive advantage.

In a firm, the Human personnel is saddled with the responsibility of effectively managing and motivating the employee for purpose of achieving productivity.

Competitive advantage of a firm entails an attribute which enables a company to outperform its competitors such as Increasing customer-base over other firms.

Therefore, when the firm HR drives the employees, productivity will be achieved which will then create an advantage of competition over other firms.

Learn more about this here

<em>brainly.com/question/17869281</em>

8 0
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