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- Assume that Facebook and Linkedin Companies have to decide whether to invest in the development of application. If they both develop successfully the new application, their profits will increase by 10 million a year. If only one develop the application, it will make 50 million a year in additional profits, whereas the profits of the other firm will drop by 15 million a year. If no firm develops the screen, the profits of the companies remains same which is 10 million. Based on given information, construct Matrix Representation of Facebook and Linkedin Companies game. In addition, based on given information, construct decision tree (Facebook choosesfirst)Note:Hand written solution should be avoided.Match the definition to each term listed below. Number 1 2 3 4 5 6 7 8 9 10 11 Definition A table that shows the payoffs each firm earns from every combination of firm strategies An agreement among firms to charge the same price or otherwise not to compete An option that is better than any alternative option regardless of what the other firm does An outcome of a strategic game from which neither rival wants to deviate A game outcome in which players seek to increase their mutual payoff A practice where one firm initiates a price change and the other firms follow the leader A game in which the firms choose their strategies at the same time One firm's gain must equal the other firm's loss A game in which the sum of Firms select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods A game that occurs more than once the two firms' outcomes is positive Instructions: Enter a numeric response corresponding to the number of the…
- question 1 a b and cEconomics questions Which of the following is true about signaling theory? A dividend increase is a sign of a higher payout ratio in the future A dividend increase is a sign of a higher dividend in the future A dividend increase is a sign of an undervalued stock A dividend increase is a sign of higher earnings in the future?Help me on here https://brainly.com/question/35756921
- . Walmart follows a centralized purchasing system; they achieve high efficiency in their operations, concentrate on small towns, and reap the experience curve's benefit. What generic strategy does Walmart follow? Briefly explain the strategy. . Explain briefly the traditional approach to strategic control (you can even explain using a diagram) . Briefly explain the school of thought that argues against CEO Duality. Mention components of emotional intelligence with a brief explanation. What is matrix structure in the organizational design approach? (you can even explain using a diagram) Discuss the four criteria that a firm's resources must possess to maintain a sustainable .5. Two firms compete repeatedly in a market of homogeneous goods. Each year, the firms can choose to charge a low or high price. The following payoff table summarizes their payoffs each year. The competition goes on indefinitely. Let 5 E (0, 1) denote the discount factor for both firms. Firm 2 Low High Low 0, 0 5, 0 Firm 1 High 0, 5 4, 4 Consider an n-period punishment trigger strategy s: • Play "High price" in the first stage. • In stage t> 2, if some player deviated to "Low price" in the last period when he is supposed to play "High price", then play "Low price" for n periods and then restart the game. In other words, after playing "Low price" for n periods, play "High price" in the next stage as if it is the first stage of the game. Otherwise, play "High price". Find the necessary and sufficient condition on & for (s, s) to be an SPE. A sufficiently simplified inequality will do.Which of the following is FALSE related to the Bank Run game ? A. Player 1 has 4 strategies in the normal form associated with the Bank Run game B. Player 2 has two types C. If a player has a strongly dominated action conditional on a state happening, then that dominated action cannot be played in equilibrium in that state
- 5.4 Food service firms buy meat, vegetables, and other foods and resell them to restaurants, schools, and hospitals. US Foods and Sysco are by far the largest firms in the indus- try. In 2015, these firms were attempting to combine or merge to form a single firm. A news story quoted one res- taurant owner as saying: "There was definite panic in the restaurant industry... when the merger was announced. They know they're going to get squeezed." a. Analyze the effect on the food service market of US Foods and Sysco combining. Draw a graph to illustrate your answer. For simplicity, assume that the market was perfectly competitive before the firms combined and would be a monopoly afterward. Be sure your graph shows changes in the equilibrium price, the equilibrium quantity, consumer surplus, producer surplus, and deadweight loss. b. Why would restaurant owners believe they would be "squeezed" by this development?What are the consequences of the central-city dilemma?Are these statements true or false? Provide a detailed explanation as to how you arrived at your answer: 1. If someone has linear indifference curves between contingent commodity bundles, then they must be risk averse and the risk premium is positive. 2. If a game has a Pareto efficient outcome, there exists a Nash equilibrium that leads to this outcome. 3. If a quantity tax is imposed on a profit maximising monopolist, consumer bear a higher burden of the tax than producers.
