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6 days ago

Suppose only two airlines, United and Delta, provide flights between Atlanta and KnoxvilleKnoxville. Both firms must choose wh

ether to advertise or not advertise. The advertising strategies with corresponding profits are depicted in the payoff matrix to the right. United Airline's profits are in blue and Delta Airline's are in red. United Airline's dominant strategy is to ▼ not advertise advertise , and Delta Airline's dominant strategy is to ▼ advertise not advertise . What is the Nash equilibrium for this game? A. United and Delta will both choose to advertise. B. United will choose to advertise and Delta will choose not to advertise. C. United and Delta will both choose not to advertise. D. United will choose not to advertise and Delta will choose to advertise.

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When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When the price rises to $1.50, the quantit

arsen [3447]

Answer:

a. -1.25

b. -1.25

Explanation:

Price elasticity measures how demand varies with price fluctuations.

The formula is:

= % change in Quantity / % change in Price

a. If the price moves from $1.00 to $1.50, the elasticity of demand will be:

% change in Quantity calculated using the midpoint method;

$=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{60,000 - 100,000}{\frac{100,000 + 60,000}{2}} \\\\= -0.5$

% Change in Price calculated with the midpoint formula

$=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.5 - 1.00}{\frac{1.00 + 1.50}{2} } \\\\= 0.4$

= -0.5/0.4

=-1.25

b. If the price decreases from $1.50 to $1.00, the elasticity of demand is:

% change in Quantity calculated using the midpoint formula;

$=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{100,000 - 60,000}{\frac{100,000 + 60,000}{2}} \\\\= 0.5$

% Change in Price calculated using the midpoint formula

$=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.00 - 1.50}{\frac{1.00 + 1.50}{2} } \\\\= -0.4$

= 0.5/-0.4

= -1.25

7 0

2 months ago

Consider the table. Mother Nature Tlaloc Bob Value of sales ($) 2750 7750 20000 Dirt ($) 0 2750 0 Bricks ($) 0 0 7750 Wages ($)

Free_Kalibri [3773]

Answer and Explanation:

Here is the breakdown:

1. For the contribution to Mother Nature

This corresponds to sales amounting to $2,750

2. Regarding Tlaloc's value-added

It equates to

= $7,750 - $2,750

= $5,000

3. For Bob’s value added

It corresponds to

= $20,000 - $7,750

= $12,250

This process applies equally to all three.

3 0

3 months ago

The investment decisions of many traders on wall street in the early 2000s led to the downfall of several investment companies,

harina [3808]

The right option is e, controlling.
The function of controlling in management involves the systematic attempts by business management to evaluate performance against established plans, standards, or objectives by assessing whether operations align with these goals or if adjustments are necessary.

3 0

3 months ago

Read 2 more answers

Suppose only two​ airlines, United and​ Delta, provide flights between Atlanta and KnoxvilleKnoxville. Both firms must choose wh

Suppose only two airlines, United and Delta, provide flights between Atlanta and KnoxvilleKnoxville. Both firms must choose wh