Q4. Consider a homogeneous product duopoly with demand curve: P = 90 - 41 - 42 The cost function of Firm 2 is given by cz(92) = 6042 Firm 1 has the opportunity to invest in cost reducing R&D. If Firm 1 does not invest, then its cost function is given by C(q) = 6041 If Firm 1 spends $200 in R&D investment, its cost function becomes (0) = 4501 Firm 1 moves first to choose either not invest in R&D or to invest $200 worth of R&D. Both 2. firms observe Firm 1's first stage decision. Then both firms compete in the product market in the second stage. (a). Solve for the backward induction outcome when both firms compete as Cournot firms (i.e simultaneous quantity game). (b). Solve for the backward induction outcome when both firms compete as Bertrand firms (i.e simultaneous pricing game).

Answers

Answer 1

The R&D investment by Firm 1 did not affect the equilibrium outcome in the Bertrand competition game, but it resulted in higher profits for Firm 1 in the Cournot competition game.

(a) In the Cournot competition game, both firms simultaneously choose their quantities to produce. Using backward induction, we start with the second stage, where both firms compete by choosing their quantities. The profit function for each firm is πi(q1, q2) = (90 - (q1 + q2) - ci)qi.

Assuming Firm 1 invests in R&D, its cost function will be C1(q1) = 200 + 4501q1, otherwise C1(q1) = 6041q1. Firm 2's cost function is given as C2(q2) = 6042q2.

Solving for the best response functions, we get q1 = (174 - q2)/2 if Firm 1 invests in R&D, and q1 = (116 - q2)/2 otherwise. Similarly, q2 = (174 - q1)/2 for both cases.

Solving for the Nash equilibrium by substituting the best response functions into each other, we get q1 = q2 = 29. The equilibrium prices are P = 90 - 2(29) = 32, and the profits are π1 = π2 = $418.

(b) In the Bertrand competition game, both firms simultaneously choose their prices. Using backward induction, we start with the second stage, where both firms compete by setting their prices. The profit function for each firm is πi(p1, p2) = (p1 - ci)q1, where q1 = (90 - p1 - p2)/2 if Firm 1 invests in R&D, and q1 = (90 - p1 - p2)/2 otherwise. Firm 2's quantity is given as q2 = (90 - p1 - p2)/2.

Solving for the best response functions, we get p1 = 45 - (1/2)q1 - (1/4)q2 if Firm 1 invests in R&D, and p1 = 60 - (1/2)q1 - (1/4)q2 otherwise. Similarly, p2 = 45 - (1/2)q2 - (1/4)q1 for both cases.

Solving for the Nash equilibrium by substituting the best response functions into each other, we get p1 = p2 = 44.5. The equilibrium quantities are q1 = q2 = 0.5, and the profits are π1 = π2 = $22.25.

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Related Questions

What is the difference between a total and a subtotal?

Answers

Explanation:

SUB-TOTAL:

The total for a part of a list of numbers being summed.

TOTAL:

An amount obtained by addition of smaller amounts.

Answer:

subtotal is all the different parts being added together from different list.

total is the all items being added together plus tax.

Explanation:

1. Give short introduction of the professions in public service sector.​

Answers

10108282828282828282

Distinguish between the sources of information about foreign employment..​

Answers

Answer:

Foreign employment might imply that the employer is a foreign entity, while international employment does not make any assumptions about the employer; it might be local (let’s say in the US,) with positions around the world. Another reason why you need to study the specifics is that usually the local labor laws control the employment conditions, so it does not matter where the company’s headquarters are.

They have fixed costs of £200 per month Each item's raw materials cost £50 The items sell for £150 each


What is the Break Even Point for the business?

Answers

Answer:

2 unit

Explanation:

The break-even point is that point at which a business makes no profit after settling all the necessary fixed cost for the period. It is the point preceding profit making at which costs are recovered

It is calculated by dividing the fixed costs with the sales revenue less the variable cost per unit of an item.

Workings

Fixed cost = 200

Selling price = 150

Variable cost = 50

Break even point = 200/(150-50)

=2 units

Any sales below this ends up in a loss as the fixed cost will not be fully recovered.

Natasha, the ceo of ellis and peters associates, seeks input from both her top management team and the lower levels of the company before she decides on strategies about the future direction of the company. judging from this, ellis and peters associates is a(n) _____ organization.

Answers

When there are considerable disparities between brands and the consumer is deeply involved in the transaction, complex buying behavior emerges in high-involvement.

What exactly is high participation decision-making?

When a consumer has a high level of interest and attachment to a product, it usually shows in their decision-making process. These goods might be pricey, provide a significant risk to the buyer (they can't be returned or exchanged for a different one quickly or at all), and necessitate some research or comparison shopping.

How many levels of involvement are there?

In terms of how they make decisions, every consumer is unique. Different levels of participation do exist, though. When it comes to purchasing decisions, consumers can be highly, moderately, or little involved.

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Work with nulls and test expressions 12. Write a SELECT statement that returns these columns from the Invoices table: invoice_number invoice_ date balance_due payment_date The invoice_number column The invoice_date column The invoice_total column minus the payment_total and credit_total columns The payment_date column Return only the rows where the payment_date column contains a null value. This should retrieve 11 rows.

Answers

Working with null values in a database can be tricky, as nulls represent missing or unknown data. It is essential to handle null values correctly to avoid unexpected results and errors in queries. By using the IS NULL operator in the WHERE clause, we can filter the rows that contain null values in a specific column. Testing expressions that involve nulls can also be useful in determining the presence or absence of data in a database.

To write a SELECT statement that returns the required columns from the Invoices table and filters the rows by null values in the payment_date column, we can use the following query:

SELECT invoice_number, invoice_date, invoice_total - payment_total - credit_total AS balance_due, payment_date
FROM Invoices
WHERE payment_date IS NULL;

This query selects the invoice_number, invoice_date, balance_due, and payment_date columns from the Invoices table. To calculate the balance_due column, we subtract the payment_total and credit_total columns from the invoice_total column. We then add a WHERE clause to filter the results by null values in the payment_date column.

The IS NULL operator is used to check if the value of the payment_date column is null. This returns all the rows where the payment_date column contains null values. In this case, the query retrieves 11 rows.

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Lightskins or Darkskins


Or Other ?

Answers

Answer:

any kind of boy

Explanation:

I have no type

write a letter to your father asking for money to buy textbooks and pay for your school fees​

Answers

Answer:

pay

Explanation:

Erica decides to spend $50 on a ticket to a concert with friends instead of buying a new pair of jeans. What is the opportunity cost other decision?
A. the benefit of having a new pair of jeans
B. the benefit of going out with her friends
C. the $50 Erica spent on the ticket
D. the enjoyment of going to the concert

Answers

Answer:

The benefit of having a new pair of jeans

Explanation:

Answer:

The benefit of having a new pair of jeans

Explanation:

3 Points

Annabel and Presley have both invested money in savings accounts with

APYs of 2.4%. If Annabel's account has a balance of $15,000 and Presley's

account has a balance of $18,000, how much more interest does Presley earn

than Annabel?

O

A. $360

B. $792

C. $432

D. $72

SUBM

Answers

Answer:

D

Explanation:

Annual percentage yield is a form of interest that a savings account earns on a deposit in a year ,expressed as a rate of the deposit.

To calculate the difference in the interest earned as per the question , the interest yield by the two accounts are calculated and the differences also worked out.

Annual percentage yield = 2.4 %

Annabel's account balance = 15,000

Annual yield = 2.4% * 15,000 = 360

Presley's account balance = 18,000

Annual yield = 2.4% * 18000 = 432.

Difference = 432 -360 = 70

what is the difference between ordered list and unordered list?

Answers

Plz try explaining the question in its full extent so I can try to help. Like what do you mean (“Ordered and Unordered list”)

what is your company's strategy for exercising social responsibility and being a good corporate citizen? would your company pursue a corporate social responsibility strategy if there was no payoff in the form of a higher image rating? why or why not?

Answers

Social responsibility:

CSR strategy is the comprehensive plan companies and funders use to design, execute, and analyze their corporate social responsibility initiatives. It includes specific focus areas, program design, promotion and communication approaches, and evaluation procedures.

Good corporate citizen:

Being a good corporate citizen involves upholding high moral and ethical standards in all of your dealings with clients, shareholders, and staff. That entails always taking into account the environmental impact of business operations and carefully balancing the requirements of shareholders with those of the community.

Why Is CSR Important:

Several fields have seen an impact from the CSR movement. As an illustration, numerous businesses have implemented strategies to increase the environmental sustainability of their operations, such as adding renewable energy sources or buying carbon offsets. As part of controlling supply chains, initiatives have been made to end the use of unethical labor practices like child labor and slavery.

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What are three elements of negligence?
Actual Harm
Breach of duty
State of mind
Duty of care
Proximate cause
Motive

Answers

Answer:

actual harm

breach of duty

duty to act

Coleslaw cost $16.95 for a 5 kg pail. what is the cost for a 4 oz portion

Answers

Answer: The cost for a 4 oz portion is 20$

Explanation:

Given : Cost of 5kg pail = 16.95$

To find : Cost of a 4 oz prtion = ?

Conversion factor : 1 kg = 35.274 oz

Thus cost of 35.274 oz = 176.37$

Then cost of 4oz =\(\frac{176.37}{35.274}\times 4=20\)$

Thus cost for a 4 oz portion is 20$

in 1960 federal spending accounted for about ______ percent of the total economy.

Answers

In 1960, federal spending accounted for approximately 18.5% of the total economy.This percentage reflects the size and of the federal government's expenditures during that time.

To determine the percentage of federal spending as a share of the total economy in 1960, we need to look at the ratio of federal spending to the Gross Domestic Product (GDP) for that year. According to historical data, the federal outlays in 1960 amounted to around $92.2 billion, and the GDP for that year was approximately $500 billion.

We can calculate the percentage as follows:

Percentage = (Federal spending / GDP) * 100

Percentage = ($92.2 billion / $500 billion) * 100

Percentage= 18.44%

Therefore, federal spending accounted for approximately 18.5% (rounded to the nearest tenth) of the total economy in 1960.

In 1960, federal spending represented a significant portion of the total economy, amounting to around 18.5%. This percentage reflects the size and influence of the federal government's expenditures during that time.

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What was the name of the Starbucks social media marketing campaign that allowed customers to customize a cup with art

Answers

Answer:

They did a doodling design contest.

Explanation:

Taking a cue from customers who have been doodling designs on cups for years, Starbucks is launching a White Cup Contest. The contest encourages customers in the U.S. and Canada to decorate a Starbucks cup with customized art, take a photo of it, and submit the design through social media using #WhiteCupContest

learn more here: https://stories.starbucks.com/stories/2014/starbucks-invites-you-to-decorate-its-iconic-white-cup/

What are customer needs?

Answers

Answer:

A customer need is a need that motivates a customer to purchase a product or service. 

Question 13 of 20
What would be the most likely consequence of making an
illegal turn while driving?
A. Collateral consequences
OB. Probation
C. Incarceration
D. A fine

Answers

Fine would be the most likely consequence of making an illegal turn while driving. The correct answer is option (D).

What is illegal turn while driving?

When a driver makes an unsafe turn, it is regarded to be unlawful. These manoeuvres may involve doing a U-turn at an intersection with a "No U-turn" sign when the light is red or turning on red when there is a "No Turn On Red" sign.a railroad crossing, or nearby.

By going through a separating part, curb, strip of land, or two sets of the double yellow lines on a divided highway. if a curve, slope, rain, fog, or other obstruction prevents you from seeing 200 feet for each direction clearly They are prohibited because of how deadly they are, claims Arias. On how to merge back onto the freeway, only emergency cars are taught.

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Our bank pays interest per year. you put in the bank today and more in the bank in one year. how much will you have in the bank in years?

Answers

You are asking how much money you will have in the bank after a certain number of years, given that the bank pays interest per year. However, the question does not provide the interest rate or the amount of money.

To calculate the future value of an investment, we need three key pieces of information: the principal amount (the initial amount you put in the bank), the interest rate. Once we have these three pieces of information, we can use the compound interest formula to calculate the future value:

Future Value = Principal Amount × (1 + Interest Rate)^Time Period.

Future Value = $1000 × (1.05)^3

Future Value = $1000 × 1.157625

Future Value ≈ $1157.63

Therefore, in this example, you would have approximately $1157.63 in the bank after 3 years.To determine the specific amount of money you will have in the bank in years, you would need to know the interest rate and the initial amount you deposited. Then, you can use the compound interest formula mentioned above to calculate the future value.

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The correct question is

Your bank pays 2.5% interest per year. You put $1,000 in the bank today and $500 more in the bank in one year. How much will you have in the bank in two years?

Barbara and the bank signed a contract in which they agreed that the bank would loan $100,000.00 to Barbara to buy a car. She would then repay the loan by making monthly payments of $2,500.00 for 50 months. After 2 years of Barbara's making payments, she and the bank agreed that Barbara could sell her car to Dorothy who agreed to make all of the remaining payments which the bank accepted. This is an example of: A. A novation. B. An accord and satisfaction. C. A void contract. D. A voidable contract.

Answers

Answer:

Option A

Explanation:

A Novation is a form of contract in which the original contract is substituted by a replacement contract where by the new party agrees to accept all the debts to be paid as a part of the original contract.  

In other way the original contracting party give all the rights and obligations to the new party  

Hence, Option A is correct

Compare two similar companies or products based on their consumers (audience), costs, communications (customer service), and convenience (relevance). When you are finished comparing, explain which product is better for people like yourself.

Compare two similar companies or products based on their consumers (audience), costs, communications

Answers

Answer:

i need this too

Explanation:

A cross-sectional design is a study in which the researcher ______. Multiple choice question. collects data at one point in time

Answers

A cross-sectional design is a study in which the researcher collects data at one point in time. Option C is the correct answer.  

Data are only gathered at one time point in a study using a cross-sectional design. With this method, a historical moment in time is captured in a picture of a specific population. A longitudinal study is the alternative to a cross-sectional one. Option C is the correct answer.

Cross-sectional studies collect data from a large number of subjects at one time, whereas longitudinal studies continually collect data from the same subjects over time, frequently concentrating on a smaller group of people who are related by a similar attribute. A cross-sectional research is the ideal option if you wish to look at the frequency of a certain result at a specific point in time.

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The complete question is, "A cross-sectional design is a study in which the researcher ______

A) collection of data over an extended period.

B) collects data at multiple points.

C) collects data at one point in time.

D) uses for follow-up studies"

persuasive promotion is especially important in which product life-cycle stage

Answers

Persuasive promotion is especially important in the growth stage of the product life cycle.

The growth stage of the product life cycle is characterized by an increasing number of customers becoming aware of the product and making purchase decisions. During this stage, competition intensifies, and companies need to differentiate their offerings and persuade customers to choose their product over competitors.

Persuasive promotion becomes crucial in the growth stage because it aims to influence customers' attitudes, preferences, and purchase decisions. Companies employ persuasive advertising, sales promotions, public relations, and other promotional tactics to communicate the unique benefits, advantages, and value propositions of their products.

By using persuasive promotion strategies, companies can create brand awareness, build customer interest, and generate a favorable perception of their product. They emphasize the product's competitive advantages, highlight its features and benefits, and address customer needs and desires. Persuasive promotion helps to convince potential customers that the product is superior or more beneficial than alternatives in the market.

Effective persuasive promotion during the growth stage can accelerate customer adoption, drive sales growth, and establish a strong market position. It helps companies capture a larger market share and create customer loyalty, setting the stage for the maturity and eventual decline stages of the product life cycle.

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Some consumption goods tend to have price insensitive demand. An example of inelastic demand is groceries. Other goods have elastic demand. An example of elastic demar is vacation homes. If the government is interested in placing the highest tax burden on firms, which good should they tax? A.Vacation homes. B.All of the above C.Groceries

Answers

If the government is interested in placing the highest tax burden on firms, they should tax vacation homes, which have elastic demand.

Goods with inelastic demand, such as groceries, are considered necessities, and consumers will continue to purchase them even if the price increases. As a result, firms have some pricing power and can pass some of the tax burden onto consumers, without losing a significant amount of sales. In contrast, goods with elastic demand, such as vacation homes, are more discretionary and consumers are more likely to reduce their demand or switch to alternative goods if the price increases. This means that firms have less pricing power and are less able to pass on the tax burden to consumers. As a result, a tax on vacation homes would likely have a greater impact on firms than a tax on groceries, as consumers are more likely to respond to the higher prices of vacation homes by reducing their demand or finding alternative options.

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Which is a good rule to follow when sending business emails? (1 point)

Answers

Answer:

Avoid forwarding spam and unnecessary messages such as chain letters.

Explanation: did the test

The good rule that must follow at the time of sending business emails is to avoid forwarding spam and unwanted texts like chain letters.

What is email?

An email, is also called as the electronic mail. It is one of the most extensively employed features of the Internet, that is mostly used in the formal business organizations.

It allows a person to transport and acquire messages from nay person in the globe that has an email account. Within the TCP/IP suite, email uses a variety of protocols.

When sending business emails, a good tip to follow is to avoid forwarding spam and undesirable texts like chain letters.

Therefore, the use of formal languages and proper formats made the emails more accurate.

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Which step is the most important step in the decision making process?.

Answers

Answer:

The most important step of the decision-making process is: Assessing the possible uncertainties in the future course of action. It is a must for any of the firms to assess or evaluate the possible risks or the uncertainties associated with the firm operation and functioning.

Joni, a college student, has $400 worth of expenses monthly. How much should she save be financially secure?​

Answers

Answer:

200 i think sorry if im wrong

Explanation:

1. So you are going on a vacation! There's lot of planning to do. You will be leaving on Friday and returning the next
Friday. You will be taking 3 other classmates with you. Where are you going and how are you getting there? Present
three options, pros and cons about how you might travel to and from your destination. The presentation must include
prices and time consideration.
Tell how you will get around while on the vacation. You need to include mileage and prices. If you are renting a car,
allow 10 cents per mile. If you are using someone's personal car, allow 35 cents per mile. Identify your final travel
decisions and how you arrive at those decisions. Make sure you include your research and any other information you
used to arrive at your decision.
Where will you stay when you get there? Present three options, pros and cons, about where you will stay while on your
vacation. The presentation must include prices and amenity considerations. If you have males and females in your
group, you need to make sure you include separate rooms for each. Identify your final lodging decisions and how you
arrived at those decisions. Include information about amenities. Make sure you include your research and any other
information you used to arrive at your decision.
What will you eat when you get there? Present 15 options for meals for your group while on vacation. The presentation
must include prices and transportation considerations. You will need to eat 2 really nice meals while on vacation. A
really nice meal is eaten at a restaurant where you must sit down and be waited on. Identify your final meal decisions
and how you arrived at those decisions. Include the cost of each meal as well as a description of the type of cuisine.
Make sure you include your research and any other information you used to arrive at your decision:

Answers

Answer:

685

Explanation:

Without ____, it would be impossible to stay in business.
Group of answer choices

growth

profit

IPO

marketing

strategy

Answers

Your answer is profit!

What is the difference between exempt and nonexempt jobs?

Answers

employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards
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