Construct the payoff table

Assignment Help Macroeconomics
Reference no: EM1369351

Two oligopoly company are in the process of estimating their marketing strategies. Firm 1 can generate estimated profits of $10 million from strategy A if the second firm reacts by strategy C, and $15 million from strategy A if the second firm reacts with strategy D. On the other hand, Firm 1 may follow strategy B which could return profits of $8 million or $9 million if Firm 2 reacts with strategy C or D respectively. The second firm's potential profits are $8 and $12 million from strategy C depending on whether Firm 1 undertakes strategy A or B, and $7 and $8 million form strategy D, depending on whether Firm 1 follows Strategy A or B.

a. Construct the payoff table for the above industry.
b. Does each firm have a dominant strategy? What is it?
c. Does the industry move toward an equilibrium position? If so, where?

 

Reference no: EM1369351

Questions Cloud

Find equilibrium gdp : From the following information, find the marginal propensity to consume, compute the expenditure at each level of GDP, and find equilibrium GDP:
Make confirmation page using xhtml portion of script : Use XHTML portion of the script to make confirmation page to be viewed by visitor. Confirmation page must display the text of email message.
Calculate market price for industry in long run equilibrium : A company in a purely competitive industry is currently manufacturing 1200 units per day at a total cost of $600. If the company purchased 1000 units per day,
Write vl program to convert leagues-number of nautical miles : Write a VL program which will convert 20,000 leagues to number of nautical miles. Your program requires no input elements, just elements to compute result and output how many nautical miles is equivalent to 20,000 leagues.
Construct the payoff table : Two oligopoly company are in the process of estimating their marketing strategies. Firm 1 can generate estimated profits of $10 million from strategy A
Major decision facing the company : Important assumptions that were integral to the firm's major decision
Question on long run equilibrium : Suppose this industry is perfectly competitive and is presently in long-run equilibrium. Suppose people start to prefer dogs as pets and cat ownership declines.
Create script which checks day of the week : Create a script which checks day of the week, and takes one of two actions (step 2 or 3) depending on the day. If day is Monday through Friday, print (send to stdout) name of the day.
Explain are the managers at wyant & wheeler justified : Explain Are the managers at Wyant & Wheeler justified in firing Andrew and What set of criteria would you use to arrive at this decision?

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Computation of parity price

If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.

  Customs to become part of their host nation

To what extent do you think that immigrant families should give up their customs to become part of their host Nation.

  Constant marginal rate of technical substitution

Determine which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?

  Calculation of optimal price

What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor

  Find out the equilibrium price - the equilibrium quantity

Find out the equilibrium price, the equilibrium quantity, the output supplied by each firm and the profit of the firm in the short run.

  Illustrate what sectors of the economy are likely to expand

Illustrate what sectors of the economy are likely to expand or recover in the near future. Illustrate what sectors may be the most vulnerable in the next year.

  Effective decisions of advertising agency

Make a short paper which relates how specific material from economic course where we cover supply and demand, elasticity and etc.

  Illustrtae what will equilibrium gdp equal if taxes decrease

Illustrtae what will equilibrium GDP equal if taxes decrease 200? Why are the results different.

  Forms of market structure-competitive or noncompetitive

Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?

  What information do require to perform a marginal analysis

Illustrate what Information do you require to perform a marginal analysis to identify the profit-maximizing output.

  Elucidate what should the us congress federal reserve do

Elucidate what should the US Congress also the Federal Reserve do about it?

  Identify kinked demand curve

The kinked-demand schedule that an oligopolist believes confronts the firm is given in the table below.  Compute the oligopolist's total revenue at each of the nine prices

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd