Answer:
E) Bright: No dominant strategy, Sparkle: Strategy 1
Explanation:
The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?
Bright: No dominant strategy, Sparkle: Strategy 1
Answer:
d. The decision maker must only stick to completely rational, mathematical analysis while selecting an alternative.
Explanation:
It is most ideal for a decision maker to stick to completely rational way of selecting an alternative as this means that the decision maker will only make choices that will be of maximum benefits and low costs. Factors such as personal feelings, or sense of obligation do not interefere when a decision maker sticks to completely rational and mathematical analysis method of decision making.
Answer:
b. −1,002.5
Explanation:
economic profit = accounting profit - opportunity costs
- accounting profit = revenue - maintenance and insurance = $96,000 - $30,240 = $65,760
- opportunity costs = the lost salary as a computer programmer + money he could earn by selling the land lot and investing = $48,000 + ($395,000 x 4.75%) = $66,762.50
economic annual profit = $65,760 - $66,762.50 = -$1,002.50
Answer:
EPS will be higher than $2.38
Explanation:
The Earnings per share is the value available to stockholders of the company after the deduction of all the expense and taxes. Restructuring expense are one time expense and they are reported as other operating expenses in the Income Statement. The inclusion of restructuring and other one-time charges in the Income Statement results in lower Earnings before Tax and ultimately reduced net profit. If these cost are excluded the Earning will rise which will give rise to EPS of the company.
