Shell and Mobile, due to a turbulence in gasoline prices, must come up with new pricing strategies to stay competitive. For simplicity, let’s assume that both firms can choose between
setting the price at $3/gallon OR $2/gallon. They set their prices at the same time. Because
most Shell and Mobile stations, for some reason, are always next to one another, whoever sets
the lower price will get ALL the customers. If they set the same price the split the customers in
half. Suppose the market demand for a small town, Economiville is given by
P = 6 – 2Q
Where Q is measured by millions of gallons, and consumers in Economiville only have access to
Shell or Mobile. Shell and Mobile have no costs of producing the gas (assume they have a prior
contract with OPEC (organization of petroleum exporting countries) and have already paid for
the gas in stock). This allows us to consider them maximizing their revenue.

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a