QUESTION TWO In line with its environment-friendly advocacy, the Makati City Police Department is considering replacing its fleet of gasoline-powered patrol cars with electric cars. The manufacturer of the electric cars claims that the city will experience significant savings over the life of the fleet if it converts, but the city government has its doubts. If the manufacturer is correct, the city will save P35 million. If the new technology is faulty, as some critics suggest, the conversion will cost the city P15 million. A third possibility is that neither situation will occur and the city will break-even with the conversion. According to a recently completed consultant's report, the respective probabilities of these 3 events are 0.4, 0.3, and 0.3. Furthermore, the city was offered a pilot program that if implemented would indicate the potential cost or savings in the conversion. The program involves renting 3 electric cars for 3 months and running then under normal conditions. The cost to the city of this pilot program would be P3.5 million. The city's consultant believes that the results of the pilot program would be significant but not conclusive. The following table reflects the compilation of probabilities base on the experience of other cities. Given that a conversion Savings A Pilot Program will Indicate No Change A Loss

Store A and Store B compete for the business of the same customer base.  Store A has 55% of the business and Store B has 45 %. Both companies intend to expand to increasse their market share.  If both expand, or neither expand, they expect theri market share to remain the same.  If Store A expands and Store B does not, the Store A"A share increases to 65%.  If Store B expands and Store A  doesnt, then Store A's share drops to 50%.  Determine which strategy, to expand or not, each company should take.

Consider a remote town in which two restaurants, All-You-Can-Eat Café and GoodGrub Diner, operate in a duopoly. Both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. Both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the leaning. If neither restaurant cleans, each will earn $14,000; alternatively, if they both hire workers to clean, each will earn only $11,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $18,000, and the other restaurant will make only $6,000. Complete the following payoff matrix using the information just given. (Note: All-You-Can-Eat Café and GoodGrub Diner are both profit-maximizing firms.) All-You-Can-Eat Café $ Cleans Up Doesn't Clean Up $ Cleans Up $ 81°F Sunny $ GoodGrub Diner $ $ If…

It is known that in any given year, • 90% of the people in a city move to the suburbs; • 80% of the people in the suburbs do not move to the city. Given an initial city population of 55,000 and an initial suburb population of 77,000, what are the long-term population levels of the city and the suburb?