### Adopt the new technique

Assignment Help Business Economics
##### Reference no: EM139066

Q. The market for tennis balls is dominated by two firms: Wilson and Penn. The research department of Wilson has discovered a new technology on Explain how to make more durable tennis balls and is considering whether or not to adopt the new technique. Acceptance would entail a fixed setup cost of C but would increase revenues. However, if Wilson adopts the new technology, Penn can easily copy it at a lower setup cost of C/2. If Wilson does not adopt the new technology, it will earn \$10 and Penn will earn \$4. If Wilson adopts and Penn does likewise, each firm will earn \$30 in revenues. If Wilson adopts and Penn does not, Wilson would earn \$40 in revenues while Penn would earn \$0.

(a)Write this game in extensive form.

(b) Under Illustrate conditions (i.e., for Illustrate values of C) does Penn have an incentive to adopt the new technology if Wilson introduces it?

(c) If C = 24, should Wilson adopt the new technology? Explain.

#### Prorated share of the centers fixed equipment-leasing costs

The Truck Stop is a repair facility specializing in the maintenance and repair of diesel engines just outside of Carlisle, Pennsylvania--one of the largest trucking hubs in th

#### Ordinary language philosophy has on democracy and education

Describe the implications Stanley Cavell’s ordinary language philosophy has on democracy and education. Provide an example of ordinary language philosophy. Examine the ideas o

#### Segment of the demand curve elastic or inelastic

The equation for a demand curve is P = 48 – 3Q. Calculate the elasticity when moving from a quantity of 5 to a quantity of 6? Show your work. Based on your answer, is this seg

#### Maximum write down in the value of the banks loans

Suppose that Bank One has deposits of \$1200, bank capital of \$100, reserves at \$120 and loans at \$1180. What is the maximum write down in the value of the bank's loans that wi

#### With the opportunity for beneficial learing

Minimum efficient scale will increase if fixed costs increase. With the opportunity for beneficial learing , a firm's lerning curve is upward sloping. The percentage change in

#### Should the government always balance its budget

Should the government always balance its budget? If you think it should, what steps do you suggest that it should take to balance its budget? What is the relationship between

#### Explain why in cross-cultural negotiations

Explain why in Cross-Cultural Negotiations, the heuristic of availability is a culturally significant bias in a negotiation to sell a computer in a highly feminine society

#### Indicate the type of sales promotion that producer might use

Indicate the type of sales promotion that a producer might use in each of the following situations and briefly explain your reasons: (1) A firm has developed an improved razo

### Write a Review

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!