Business, 07.04.2020 23:23 yasyyas646646

Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises:

Pop Hop
Advertise Doesn’t Advertise
Fizzo Advertise 10, 10 18, 2
Doesn’t Advertise 2, 18 11, 11
For example, the upper right cell shows that if Fizzo advertises and Pop Hop doesn't advertise, Fizzo will make a profit of $18 million, and Pop Hop will make a profit of $2 million. Assume this is a simultaneous game and that Fizzo and Pop Hop are both profit-maximizing firms.

If Fizzo decides to advertise, it will earn a profit ofmillion if Pop Hop advertises and a profit ofmillion if Pop Hop does not advertise.

If Fizzo decides not to advertise, it will earn a profit ofmillion if Pop Hop advertises and a profit ofmillion if Pop Hop does not advertise.

If Pop Hop advertises, Fizzo makes a higher profit if it chooses (not to advertise, to advertise) .

If Pop Hop doesn't advertise, Fizzo makes a higher profit if it chooses (not to advertise, to advertise) . .

Suppose that both firms start off not advertising. If the firms act independently, what strategies will they end up choosing?

Fizzo will choose to advertise and Pop Hop will choose not to advertise.

Both firms will choose to advertise.

Fizzo will choose not to advertise and Pop Hop will choose to advertise.

Both firms will choose not to advertise.

Again, suppose that both firms start off not advertising. If the firms decide to collude, what strategies will they end up choosing?

Fizzo will choose not to advertise and Pop Hop will choose to advertise.

Both firms will choose not to advertise.

Fizzo will choose to advertise and Pop Hop will choose not to advertise.

Both firms will choose to advertise.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:30

Long-distance providers are becoming increasingly concerned about certain activities within their industry. various companies come together voluntarily to implement new standards of social responsibility that members must abide by. what seems to be the primary motivation in this case for an increased interest in social responsibility? - because corporations are creations of society, they are responsible for giving back to the communities in which they operate.- these companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.- these companies are using social responsibility as a means to increase their profitability, both short term and long term.- long-distance providers have started taking pride in their industry and its record for social responsibility.- they feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.

Answers: 2

Answer

Business, 22.06.2019 05:50

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Answers: 1

Answer

Business, 22.06.2019 09:50

Beck company had the following accounts and balances at the end of the year. what is net income or net loss for the year? cash $ 74 comma 000 accounts payable $12,000 common stock $21,000 dividends $12,000 operating expenses $ 13 comma 000 accounts receivable $ 49 comma 000 inventory $ 47 comma 000 longminusterm notes payable $33,000 revenues $ 91 comma 000 salaries payable $ 30 comma 000

Answers: 1

Answer

Business, 23.06.2019 00:30

Environmentalists are concerned about emissions of sulfur dioxide into the air. the average number of days per year in which sulfur dioxide levels exceed 150 milligrams per cubic meter in milan, italy, is 29. the number of days per year in which emission limits are exceeded is normally distributed with a standard deviation of 4.0 days. what percentage of the years would exceed 37 days?

Answers: 2

Answer

You know the right answer?

Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff ma...

Questions