subject
Business, 26.11.2019 00:31 mia3128

Uppose that expresso and beantown are the only two firms that sell coffee. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: beantown advertise doesn't advertise expresso advertise 8, 8 15, 2 doesn't advertise 2, 15 11, 11 for example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit ofmillion if beantown advertises and a profit ofmillion if beantown does not advertise. if expresso decides not to advertise, it will earn a profit ofmillion if beantown advertises and a profit ofmillion if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso 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

Other questions on the subject: Business

image
Business, 21.06.2019 19:20, justintisdale95
Which of the following areas provides residents with close access to high-paying jobs and cultural attractions? a. the suburbs b. exurbs c. rural areas d. the city 2b2t
Answers: 3
image
Business, 21.06.2019 22:50, emmanuelcampbel
What happens when a bank is required to hold more money in reserve?
Answers: 3
image
Business, 22.06.2019 12:30, dtrdtrdtrdtrdrt1325
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
image
Business, 23.06.2019 00:30, Nerdylearner8639
Kim davis is in the 40 percent personal tax bracket. she is considering investing in hca(taxable) bonds that carry a 12 percent interest rate. what is her after- tax yield(interest rate) on the bonds?
Answers: 1
You know the right answer?
Uppose that expresso and beantown are the only two firms that sell coffee. the following payoff matr...

Questions in other subjects:

Konu
Mathematics, 15.07.2019 16:00
Konu
Mathematics, 15.07.2019 16:10