scenario: two rival firms charge equal prices for their products, which are perfect substitutes. firm 1 is considering offering a 10% discount on the market price to increase sales. the game tree below shows the respective payoffs to each firm, depending on the decisions each makes. refer to the scenario above. which of the following is true?
a. firm 2 should offer a discount if firm 1 offers a discount.
b. firm 1 should never choose to offer a discount.
c. firm 1 should randomly offer a discount.
d. firm 2 should never offer a discount

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Acompany factory is considered which type of resource a. land b. physical capital c. labor d. human capital

Job 456 was recently completed. the following data have been recorded on its job cost sheet: direct materials $ 2,418 direct labor-hours 74 labor-hours direct labor wage rate $ 13 per labor-hour machine-hours 137 machine-hours the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $14 per machine-hour. the total cost that would be recorded on the job cost sheet for job 456 would be: multiple choice $3,380 $5,298 $6,138 $2,622