Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. ABC's Decision High price Low price ABC's profit - $10 million ABC's profit - $14 million High price QRS's profit = $10 million QRS's profit - $4 million QRS'S Decision ABC's profit = $4 million ABC's profit = $6.5 million Low price QRS's profit = $14 million QRS's profit = $6.5 million a) If these two companies collude what is the best joint strategy that they should agree upon? How much would they each eam in profits? b) Definelexplain in general the concept of "dominant strategy". What is ABC's and QRS' dominant strategy here? c) Define lexplain in general the concept of " Nash equilibrium". Identify the Nash equilibrium on the payoff matrix, that is what are the profits earned by each competitor at the equilibrium?

Q: Do you have any references or sources for this information

A: In an error correction model (ECM) expectations about future economic conditions can influence the…

Q: Refer to Figure 3-1. The rate of trade-off between producing chairs and producing couches is…

A: Let us define the concept of opportunity cost. Opportunity cost theory states that the cost of a…

Q: hey i was doing my homework and i couldnt figure out the last question

A: Average total cost is the per unit cost incurred in producing a commodity.

Q: Make flow chart of type of budget?

A: budget is a estimate expense and income for certain period of time

Q: Answer the questions a through f

A: As per company policy we are only supposed to answer one question up-to 3 subsets in one session, so…

Q: Refer to Figure 3-1. The rate of trade-off'between producing chairs and producing couches is…

A: Trade off means the number of units of a good foregone to produce an additional unit of another good…

Q: What important informations are required in evaluations?

A: Evaluation can be understood as a systematic and objective assessment of an ongoing or completed…

Q: The option or alternatives from which decision are made

A: Alternatives ought to reflect generously various ways to deal with the issue or various needs across…

Q: Where do you get the number 11?

A: Given, Marginal propensity to save (mps)=0.2 Marginal propensity to import (mpm)=0.1 Marginal income…

Q: Could you please answer questions d and e.

A: Robert Solow created the Solow model, commonly referred to as the neoclassical growth model, in the…

Q: A sentence that contains a metaphor

A: Metaphor is a figure of speech that directly refers to some thing by way of mentioning another.

Q: Q10. Refer to Figure 1. An economy is operating at full employment, and then workers in the bread…

A: An economy is operating at full employment implies that they are operating on the PPF