Which of the following is true? AVC=ATC+AFC. AFC will go up in the beginning but will eventually go down.  MC= (change in TC)/ (change in Q) FC+MC=TC.

Two rival companies competing in the same market need to decide their plans for future expansion of their stores. The Table below shows the possible outcomes of their mutually interdependent actions (payoffs are profits in £m)     Giga Company Titanic Conglomerate   No Change Refurbishment of existing stores Large Expansion No Change     30, 40      25, 35    15, 24 Refurbishment of existing stores     35, 30      28, 32    18, 33 Large Expansion     12, 22     18, 20    20, 25   The Nash equilibrium:            (A)       does not exist. (B)       occurs when both firms choose Refurbishment of existing stores.              (C)       occurs when both firms choose Large Expansion. (D)       occurs when both firms choose No Change.

Ready Foods contracts to buy two hundred carloads of frozen pizzas from Speedy Distributors. Before Ready or Speedy starts performing, can the parties call off the deal? What if Speedy has already shipped the pizzas? Explain your answers.

suppose the campus of a university with 1,000 students lies along a street which is one mile long. There are two restaurants that sell pizza by the slice, and they are located at opposite ends of the campus street. Each restaurant can produce a slice of pizza for $1.00 (marginal cost) and the quality of the pizza from the two restaurants is identical. After classes, each student would like to buy one slice of pizza (as long as it costs less than $5.00), but they are evenly distributed along the university campus street and each needs to choose which direction to walk to get pizza. They have a constant disutility of having to walk such that they are willing to pay $2.00 per mile to avoid walking. (You can ignore the presence of other restaurants and assume that students choose between only these two.) 1. If these restaurants simultaneously set prices to maximize profits, what prices will each restaurant set in equilibrium? (You don’t need to derive the equilibrium prices here if you are…

A sequential game can be used to analyze whether a retail firm should build a large store or a small store in a​ city when the correct choice depends on whether a competing firm will build a new store in the same city. Which of the following is used to analyze this type of​ decision?   A. an either minus or graph   B. a decision matrix   C. a sequential matrix   D. a decision tree

Problems associated towards unique outcomes in games where multiple Nash equilibria exist”

Karl Lipton is the marketing communications coordinator for a major electronics manufacturer. He is assigned with charting out a communications strategy for a new range of mobile phones developed by his company. How will Karl's communications strategy look over the course of the mobile phones' life cycle?

Game theory - please help. Thanks!

There are two oil producers, Saudi Arabia and Iran (these are countries which we are treating as players in this example).  The market price will be $60/barrel if the total volume of sales is 9 million barrels daily, $50 if the total volume of sales is 11 million barrels daily, and $35 if the total volume of sales is 13 million barrels daily.  Saudi Arabia has two strategies; either produce 8 million barrels daily or 6 million.  Iran has two strategies; either produce 3 million barrels daily or 5 million.  Assume for simplicity that marginal cost of production is zero for both countries. Here is the normal form representation of this game (where Saudi Arabia and Iran are players, they can choose strategies over what quantity to produce and they face payoffs in terms of profits).  Note that the following paragraph is simply an explanation of this representation of the game.  If you are already comfortable with the structure, feel free to skip to the questions below the horizontal line…

Consider the following graph: AR, MR, ATC, MC w* W* MC = ATC AR=D W A MR a. Indicate the price a profit maximizing firm faces for a win, PPR. Shade in the area that indicates the team's profit. b. Indicate the price a win maximizing firm faces for a win, Pw. Shade in the area that indicates the team's profit.