The challenges of coordinating between two different firms can be an important driver of why a...
The challenges of coordinating between two different firms can be an important driver of why a firm chooses to diversify.
True or False
Homework Answers
False
Explanation: A firm wants to diversify mainly to grow and to manage risks.
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The challenges of coordinating between two different firms can
be an important driver of why a...
Question 3 1 pts The challenges of coordinating between two different forms can be an important...
Question 3 1 pts The challenges of coordinating between two different forms can be an important driver of why a firm chooses to diversify True False Question 4 1 pts An important lesson from eBay is that off-shoring and out-sourcing decisions are often linked. True False Question 5 1 pts
D Question 2 1 pts The incentives to cheat in a strategic alliance - hold up,...
D Question 2 1 pts The incentives to cheat in a strategic alliance - hold up, moral hazard, adverse selection-are fundamentally the same as concerns we discussed in coordinating across firms. True False Question 3 1 pts The challenges of coordinating between two different firms can be an important driver of why a firm chooses to diversify. Fale Question 4 1 pts An important lesson from eBay is that off-shoring and outsourcing decisions are often linked True False
Can you help me with these micro-econ questions please 1. What important characteristic do all three...
Can you help me with these micro-econ questions please
1. What important characteristic do all three types of imperfectly competitive firms share? 2. True or false: A firm with market power can sell whatever quantity it wishes at whatever price it chooses. Explain why you chose True/False 3. Why is marginal revenue always less than price for a monopolist but equal to price for a perfectly competitive firm? 4. Why do most successful industrial societies offer patents and copyright protection,...
Let two oil firms, A and B, in a duopoly be choosing their production decisions. For...
Let two oil firms, A and B, in a duopoly be choosing their production decisions. For simplicity, assume they can choose two production levels: HI and LO. If both firms chooose LO, they each earn $3 billion. If both firms choose HI, they each earn $2 billion. If one firm chooses HI while the other chooses low, the HI firm earns $4 billion and the LO firm earns $1 billion. What is the strategy that optimizes the payoffs to both...
Let two oil firms, A and B, in a duopoly be choosing their production decisions. For...
Let two oil firms, A and B, in a duopoly be choosing their production decisions. For simplicity, assume they can choose two production levels: HI and LO. If both firms chooose LO, they each earn $3 billion. If both firms choose HI, they each earn $2 billion. If one firm chooses HI while the other chooses low, the HI firm earns $4 billion and the LO firm earns $1 billion. What is the Nash Equilibrium outcome? A chooses LO, B...
Question 2 (60 points) Consider two following Cournot competition between two firms, Firm 1 and Firm...
Question 2 (60 points) Consider two following Cournot competition between two firms, Firm 1 and Firm 2. The firms face an inverse demand function P = 600-Q where Q = 91 + 92 is the total output. Each unit produced costs c-$60. Therefore the profit of each farmer is given by π1 (J1.qz) = (600-91-J2)a1-6091 712 (41,42) (600 q1 q2)42-6092 Each firm. i simultaneusly chooses own qi to maximize own profits πί. a) (15 points) Find the Cournot NE quantities...
Why is product costing so important for firms? Explain how poor costing strategies can affect a...
Why is product costing so important for firms? Explain how poor costing strategies can affect a company.
Two profit-maximizing firms compete in a market. Firm 1 chooses quantity qı > 0 and Firm...
Two profit-maximizing firms compete in a market. Firm 1 chooses quantity qı > 0 and Firm 2 chooses quantity 42 > 0. The market price is: p(91,92) = 8 - 2q1 - 42. The cost to Firm 1 of producing qi is C1 = 41. The cost to Firm 2 of producing 92 is C2 = 42 + 42. a.) * Calculate the best-response function for each firm. b.) Suppose the two firms choose their quantities simultaneously. What is the...
What is the difference between correlation and identity? Why is it important to distinguish between the two concept...
What is the difference between correlation and identity? Why is it important to distinguish between the two concepts? Provide an example of a statement that confuses correlation with identity.
What is the difference between correlation and identity? Why is it important to distinguish between the two concepts? Provide an example of a statement that confuses correlation with identity.
QUESTION 6 Consider the Hotelling model of the competition between two firms discussed in class. Select...
QUESTION 6 Consider the Hotelling model of the competition between two firms discussed in class. Select all that apply. a.If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position. D. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. C....
Question 3 1 pts The challenges of coordinating between two different forms can be an important driver of why a firm chooses to diversify True False Question 4 1 pts An important lesson from eBay is that off-shoring and out-sourcing decisions are often linked. True False Question 5 1 pts
D Question 2 1 pts The incentives to cheat in a strategic alliance - hold up, moral hazard, adverse selection-are fundamentally the same as concerns we discussed in coordinating across firms. True False Question 3 1 pts The challenges of coordinating between two different firms can be an important driver of why a firm chooses to diversify. Fale Question 4 1 pts An important lesson from eBay is that off-shoring and outsourcing decisions are often linked True False
Can you help me with these micro-econ questions please
1. What important characteristic do all three types of imperfectly competitive firms share? 2. True or false: A firm with market power can sell whatever quantity it wishes at whatever price it chooses. Explain why you chose True/False 3. Why is marginal revenue always less than price for a monopolist but equal to price for a perfectly competitive firm? 4. Why do most successful industrial societies offer patents and copyright protection,...
Question 2 (60 points) Consider two following Cournot competition between two firms, Firm 1 and Firm 2. The firms face an inverse demand function P = 600-Q where Q = 91 + 92 is the total output. Each unit produced costs c-$60. Therefore the profit of each farmer is given by π1 (J1.qz) = (600-91-J2)a1-6091 712 (41,42) (600 q1 q2)42-6092 Each firm. i simultaneusly chooses own qi to maximize own profits πί. a) (15 points) Find the Cournot NE quantities...
Two profit-maximizing firms compete in a market. Firm 1 chooses quantity qı > 0 and Firm 2 chooses quantity 42 > 0. The market price is: p(91,92) = 8 - 2q1 - 42. The cost to Firm 1 of producing qi is C1 = 41. The cost to Firm 2 of producing 92 is C2 = 42 + 42. a.) * Calculate the best-response function for each firm. b.) Suppose the two firms choose their quantities simultaneously. What is the...
What is the difference between correlation and identity? Why is it important to distinguish between the two concepts? Provide an example of a statement that confuses correlation with identity.
What is the difference between correlation and identity? Why is it important to distinguish between the two concepts? Provide an example of a statement that confuses correlation with identity.
QUESTION 6 Consider the Hotelling model of the competition between two firms discussed in class. Select all that apply. a.If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position. D. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. C....
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