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Two companies compete for a share of the soft drink market. Each worked with an advertising agency in order to develop alternative advertising strategies for the coming year (e.g., a variety of television advertisements, product promotions, in-store displays, etc.). Each company has identified four possible primary marketing initiatives for the upcoming year - the table below indicates the projected change in market share (i.e., % of industry sales) for Company A once the two companies select their primary marketing initiative for the upcoming year.
Company Bb1 b2 b3 b4Company A a1 0 -1.5 -0.8 2a2 3 -0.5 0.5 -1a3 1 -2.5 0 2a4 2 2 1 1.5
a. Complete this table to make it a normal form one-period, simultaneous strategy game.b. Does either company have a dominant advertising strategy? Why or why not?c. What advertising option do you predict each company will choose (assuming that their selection is consistent with game theory expectations).
Find out the total nominal money stock as measured by the Federal Reserve's definition of M1. What will happen to each of your answers to part a to e.
Calculate the new cost earned by sellers, the cost paid by clients, as well as the equilibrium quantity sold in the market.
Discuss these three time horizons in terms of the price elasticity of supply. Sketch a figure showing supply curves for each of the time horizons.
what quantity would they choose? If the oligopolists do not act together but instead make production decisions individually.
Elucidate how each of the following people would talk about scarcity and trade offs.
Should United States government approach favors certain kinds of immigrants. Should citizenship preference be given to the neediest applicants.
Opportunities being taken or missed out can be the be-all and the end-all for a company. How does market research help in opportunity recognition? Feel free to use examples in support of your answer.
Could trade help reduce poverty in Brazil and other developing countries. How do product and factor prices and wages eventually equalize between the two countries.
Calculate the range, variance, and standard deviation for this data series. Which measure does the best job of describing the dispersion in this variable.
Illustrate what strategies would you recommend in the fight against obesity. Elucidate what is GMA doing in the fight against obesity.
Suppose a household's annual take-home pay in 1951 was $8,320. Elucidate what would be an equivalent home pay in 1982.
The company ises MACRS depreciation and its marginal tax rate is life of 5 years). The 10 cars were sold at the ending a MARR of 10% and using NPW, determine if this was a good investment on an after-tax basis.
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