Business, 11.02.2021 21:10 maciemarklin3032

Attaburger and Beefsteak are the only two fast-food hamburger restaurants in a small town. Each firm can choose to set a high price or a low price for a hamburger meal. The payoff matrix below shows the daily profits for any combination of strategies the two restaurants can choose. The payoff for Attaburger is listed first; the payoff for Beefsteak is listed second. Assume both restaurants have complete information. Beef steak
High price Low price
Attaburger High price $10, $13 $ 6, $14
Low price $ 12, $8 $ 9, $ 7
a. If Attaburger selects a high price, what strategy will Beefsteak select? Explain using the dollar values in the payoff matrix.
b. Does Beefsteak have a dominant strategy? Explain using the dollar values in the payoff matrix.
c. Assume that Attaburger and Beefsteak collude, both agreeing to choose high prices in order to maximize their joint profit at $23. If such an agreement is not legally enforceable, does Attaburger have an incentive to break the agreement? Explain using specific values.
d. Instead of colluding, the firms simultaneously select their prices. In the Nash equilibrium, what are the daily profits for each of the following?
a. Attaburger
b. Beefsteak

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 16:10

Computing depreciation, net book value, and gain or loss on asset sale lynch company owns and operates a delivery van that originally cost $46,400. lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. depreciation was last recorded at the end of the fourth year, at which time lynch disposes of this van. compute the net bookvalue of the van on the disposal date.

Answers: 1

Answer

Business, 22.06.2019 19:10

Calculating and interpreting eps information wells fargo reports the following information in its 2015 form 10-k. in millions 2015 2014 wells fargo net income $24,005 $24,168 preferred stock dividends $1,535 $1,347 common stock dividends $7,400 $6,908 average common shares outstanding 5,136.5 5,237.2 diluted average common shares outstanding 5,209.8 5,324.4 determine wells fargo's basic eps for fiscal 2015 and for fiscal 2014. round answers to two decimal places.

Answers: 3

Answer

Business, 23.06.2019 02:30

Cadillac's portfolio consists of sedans, a crossover, a sport utility vehicle, and a high-performance version of the sedan. the sedans are sold through the cadillac dealer network, but the high-performance version is sold in limited volumes and is not available at all dealers. this difference in availability is an example of how the products within the cadillac portfolio are differentiated by the

Answers: 3

Answer

Business, 23.06.2019 02:50

Expert computers was started in 2018. the company experienced the following accounting events during its first year of operation: started business when it acquired $40,000 cash from the issue of common stock. purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. paid off one-half of the accounts payable balance within the discount period. sold merchandise on account for $28,000. credit terms were 1/20, n/30. the merchandise had cost expert computers $16,000. collected cash from the account receivable within the discount period. paid $2,100 cash for operating expenses. paid the balance due on accounts payable. the payment was not made within the discount period. required record the events in a horizontal statements model below. in the cash flows column, use the letters oa to designate operating activity, ia for investing activity, fa for financing activity, or nc for net change in cash. if the account is not affected by the event, leave the cell blank. the first event is recorded as an example. what is the amount of gross margin for the period? what is the net income for the period?

Answers: 1

Answer

You know the right answer?

Attaburger and Beefsteak are the only two fast-food hamburger restaurants in a small town. Each firm...

Questions