You are the manager of a firm that manufactures front and rear windshields for the automobile...
You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scale in the industry, entry by new firms is not profitable. Toyota has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front and rear windshields for its new Highlander. If both you and your rival submit a low price, each firm supplies 50,000 front and rear windshields and earns a zero profit. If one firm quotes a low price and the other a high price, the low-price firm supplies 100,000 front and rear windshields and earns a profit of $11 million and the high-price firm supplies no windshields and loses $2 million. If both firms quote a high price, each firm supplies 50,000 front and rear windshields and earns a $6 million profit. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a “special edition” that will be sold only for one year. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.
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You are the manager of a firm that manufactures front and rear
windshields for the automobile...
2. Suppos e there are two firms in an oligopoly, Firm A both firms charge a...
2. Suppos e there are two firms in an oligopoly, Firm A both firms charge a low price, each earns and Firm B. If $2 million in profit. If both firms charge a high price, each earns $3 million in profit. If one firm charges a high price and one charges a low price, customers flock to the firm with the low price, and that firm earns $4 million in profit while the firm with the high price earns $1...
options are: b) small, large The table below shows the payoff matrix for a game between...
options are:
b) small, large
The table below shows the payoff matrix for a game between Toyota and Honda, each of which is contemplating building a factory in a new market Each firm can other build a small factory (and produce a small number of cars) or build a large factory (and produce a large number of cars). Suppose no other car manufacturers are selling in this market Toyota's Decision Small Factory Large Factory High Industry Price Medium Industry Price...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
A firm has two divisions, each of which has its own manager. Managers of these divisions...
A firm has two divisions, each of which has its own manager. Managers of these divisions are paid according to their effort in promoting produc- tivity in their divisions. The payment scheme is based on a comparison of the two outcomes. If both managers have expended “high effort,” each earns $150,000 a year. If both have expended “low effort,” each earns “only” $100,000 a year. But if one of the two managers shows “high effort” whereas the other shows “low...
This Question: 10 pts Accept SX Suppose Securitex is a small firm that has developed a...
This Question: 10 pts Accept SX Suppose Securitex is a small firm that has developed a new anti-theft device for automobiles Securitex currently sells its device online and earns profit of $10 million per year. GM is considering installing Securitex's system on its automobiles. The two firms first, however, must bargain over what price GM will pay Securitex for its software GM chooses how much to offer Securitex for its system and then Securitex chooses whether to accept the offer...
This Question: 10 pts Accept SX Suppose Securitex is a small firm that has developed a...
This Question: 10 pts Accept SX Suppose Securitex is a small firm that has developed a new anti-theft device for automobiles Securitex currently sells its device online and earns profit of $10 million per year. GM is considering installing Securitex's system on its automobiles. The two firms first, however, must bargain over what price GM will pay Securitex for its software GM chooses how much to offer Securitex for its system and then Securitex chooses whether to accept the offer...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 per bag no matter how many bags are produced nstructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Yes Is this a decreasing-cost...
SHOW ALL OF YOUR WORK 6. A firm has cash of 100,000, accounts receivable of 75,000,...
SHOW ALL OF YOUR WORK 6. A firm has cash of 100,000, accounts receivable of 75,000, prepaid expenses of 12,500, accounts payable of 50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last calendar year. What is the firms working capital? 7. Which company has the most risk from an investor's standpoint? Firm A has a PE of 84 times and Firm...
15. Which of the following is a true statement about the difference between a price-taker firm and a competitive price-s...
15. Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run (more than one answer is correct)? a. Both will sell their products at a price equal to average total cost, but only the price-searcher will produce at minimum average total cost. b. Both will sell their products at a price equal to marginal cost, and only the competitive price searcher will produce at minimum average...
You are the manager of a responsibility center which manufactures and sells car gears for automobile...
You are the manager of a responsibility center which manufactures and sells car gears for automobile plants. Your selling and manufacturing cost structure as follows: Production and sales: 10,000 units Selling price per gear: $20 Variable Costs: $8/unit of output Manufacturing overhead: $50,000 Administrative and Marketing Expenses: $10,000 Total Asset: $100,000 Cost of capital: 10% Which of the following is the true calculation of RI (residual income) for the company? Lutfen birini seçin 3 200.000-80,000-50,000-80.000 D 60.000-(100,000x10=50,000 80.000-50.000-30.000 0.200.000-80.000X10-13.000
2. Suppos e there are two firms in an oligopoly, Firm A both firms charge a low price, each earns and Firm B. If $2 million in profit. If both firms charge a high price, each earns $3 million in profit. If one firm charges a high price and one charges a low price, customers flock to the firm with the low price, and that firm earns $4 million in profit while the firm with the high price earns $1...
options are:
b) small, large
The table below shows the payoff matrix for a game between Toyota and Honda, each of which is contemplating building a factory in a new market Each firm can other build a small factory (and produce a small number of cars) or build a large factory (and produce a large number of cars). Suppose no other car manufacturers are selling in this market Toyota's Decision Small Factory Large Factory High Industry Price Medium Industry Price...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
This Question: 10 pts Accept SX Suppose Securitex is a small firm that has developed a new anti-theft device for automobiles Securitex currently sells its device online and earns profit of $10 million per year. GM is considering installing Securitex's system on its automobiles. The two firms first, however, must bargain over what price GM will pay Securitex for its software GM chooses how much to offer Securitex for its system and then Securitex chooses whether to accept the offer...
This Question: 10 pts Accept SX Suppose Securitex is a small firm that has developed a new anti-theft device for automobiles Securitex currently sells its device online and earns profit of $10 million per year. GM is considering installing Securitex's system on its automobiles. The two firms first, however, must bargain over what price GM will pay Securitex for its software GM chooses how much to offer Securitex for its system and then Securitex chooses whether to accept the offer...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 per bag no matter how many bags are produced nstructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Yes Is this a decreasing-cost...
You are the manager of a responsibility center which manufactures and sells car gears for automobile plants. Your selling and manufacturing cost structure as follows: Production and sales: 10,000 units Selling price per gear: $20 Variable Costs: $8/unit of output Manufacturing overhead: $50,000 Administrative and Marketing Expenses: $10,000 Total Asset: $100,000 Cost of capital: 10% Which of the following is the true calculation of RI (residual income) for the company? Lutfen birini seçin 3 200.000-80,000-50,000-80.000 D 60.000-(100,000x10=50,000 80.000-50.000-30.000 0.200.000-80.000X10-13.000
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