A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spend C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (36 + J )C - 2C 2 and the profits of the jeweler will be (30 + C )J - 2J 2. The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be Group of answer choices $17.   $34.   $51.   $8.50.   $25.50.

Q13 George and Jerry are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of €3,000. If they both advertise on radio, each will earn a profit of €5,000. If neither advertises at all, each will earn a profit of €10,000. If one advertises on TV and the other advertises on radio, then the one advertising on TV will earn €4,000 and the other will earn €2,000. If one advertises on TV and the other does not advertise, then the one advertising on TV will earn €8,000 and the other will earn €5,000. If one advertises on radio and the other does not advertise, then the one advertising on radio will earn €9,000 and the other will earn €6,000. If both follow their dominant strategy, then George will: (a) advertise on TV and earn €3,000; (b) advertise on radio and earn €5,000; (c) advertise on TV and earn €8,000; (d) not advertise and earn €10,000;

Aji owns a rental space in New York and is thinking of opening a restaurant in that space. An accountant looks at the estimated out of pocket costs and expected revenues. He informs Aji that the restaurant will make profits. But Aji's economist friend tells her that the restaurant business is not likely to be profitable. Both the accountant and the economist can be correct. True False

Note: the answer should be typed.

Does Firm 1 have a dominant strategy? a)No b)Yes. Advertise c)Yes. Do not advertise Does Firm 2 have a dominant strategy?  a)No b)Yes. Advertise c)Yes. Do not advertise

I selected answer "B", which was surprisingly incorrect.  What say you?  What would you pick as the correct choice?

Build a chart with columns for traditional grocers, Instacart, and FreshDirect. Add rows showing various advantages to the firm and consumer and use the row/column intersection to show whether the alternative in the column has an advantage over its rivals. Also list how the advantage is realized (e.g., lower costs/higher profits, or strategic asset creation such as improved brand, more data, switch cost creation)

The table below shows the payoffs for two firms competing through advertisement. Firm A and Firm B can each choose to advertise, or to not advertise. A's Strategy Advertise Don't Advertise Table 14.2 B's Strategy Advertise A's profit $100 million B's profit $100 million A's profit $50 million B's profit $200 million What is Firm A's dominant strategy? Don't Advertise A's profit $200 million B's profit $50 million C. Advertise d. Firm A does not have a dominant strategy A's profit $75 million B's profit $75 million a. Don't advertise b. Indeterminate from this information, as no information is provided on Firm A's risk preference.

The dropdown options are "Cleans" or "Does not clean." thank you!

8. Collusive outcome versus Nash equilibrium Suppose there is a remote stretch of highway along which two restaurants, Last Chance Café and Desolate Diner, operate in a duopoly. Neither restaurant invests in keeping up with health code regulations, but regardless they both have customers as they are the only dining options along a 79- mile portion of the road. Both restaurants know that if they clean up and comply with health codes they will attract more customers, but this also means that they will have to pay workers to do the cleaning. If neither restaurant cleans, each will earn $11,000; alternatively, if they both hire workers to clean, each will earn only $8,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $15,000, and the other restaurant will make only $3,000. Complete the following payoff matrix using the information just given. (Note: Last Chance Café and Desolate Diner are both…