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Homework answers / question archive / CENGAGE MINDTAP Q Search Homework (Ch 17) Back to Assignment Attempts: Keep the Highest: /6 5
CENGAGE MINDTAP Q Search Homework (Ch 17) Back to Assignment Attempts: Keep the Highest: /6 5. To advertise or not to advertise Suppose that Creamland and Dairy King are the only two firms that sell ice cream. The following payoff matrix shows the profit in millions of dollars) each company will earn depending on whether or not it advertises: Dairy King Advertise Doesn't Advertise 8,8 15,2 Creamland Advertise Doesn't Advertise 2.15 11.11 For example, the upper right cell shows that if Creamland advertises and Dairy King doesn't advertise, Creamland will make a profit of $15 million and Dairy kong will make a profit of $2 million. Assume this is a simultaneous game and that Creamland and Dairy King are both profit maximizing firms
For example, the upper right cell shows that if Creamland advertises and Dairy King doesn't advertise, Creamland will make a profit of $15 million, and Dairy King will make a profit of $2 million. Assume this is a simultaneous game and that Creamland and Dairy King are both profit-maximizing firms. If Creamland decides to advertise, it will earn a profit of 5 not advertise. million if Dairy King advertises and a profit of 5 million if Dairy King does of Creamland decides not to advertise, it will earn a profit of 5 does not advertise. million if Dairy King advertises and a profit of 5 million if Dalry King If Dairy King advertises, Creamland makes a higher profit if it chooses not to advertise If Dairy King doesn't advertise, Creamland makes a higher profit if it cl to advertise Suppose that both firms start off not advertising. If the firms act indeplinom meer tegies will they end up choosing? O Creamland will choose to advertise and Dalry King will choose not to advertise. O Creamland will choose not to advertise and Dairy King will choose to advertise, Both firms will choose to advertise Both firms will choose not to advertise
Homework (Ch 17) For example, the upper right cell shows that if Creamland advertises and Dairy King doesn't advertise, Creamland will make a profit of $15 million, and Dairy King will make a profit of $2 million. Assume this is a simultaneous game and that Creamland and Dairy King are both profit-maximizing firms. If Creamland decides to advertise, it will earn a profit of 5 not advertise. million if Dalry King advertises and a profit of million if Dalry King does If Creamland decides not to advertise, it will earn a profit of S does not advertise. million if Dairy King advertises and a profit of million If Dairy King 1f Dalry King advertises. Creamland makes a higher profit if it chooses IF Dairy King doesn't advertise, Creamland makes a higher profit if it chooses Suppose that both firms start off not advertising. If the firms act independent to advertise will they end up choosing? not to advertise O Creamland will choose to advertise and Dalry Kino will choose not Creamland will choose not to advertise and Dalry King wil choose to advertise Both firms will choose to advertise Both firms will choose not to advertise
For example, the upper right cell shows that if Creamland advertises and Dairy King doesn't advertise, Creamland will make a profit of $15 million, and Dairy King will make a profit of $2 million. Assume this is a simultaneous game and that Creamland and Dairy King are both profit-maximizing firms. If Creamland decides to advertise, it will earn a profit of 5 not advertise. million if Dairy King advertises and a profit of 5 million if Dairy King does If Creamland decides not to advertise, it will earn a profit of S does not advertise. | million if Dairy King advertises and a profit of 3 million if Dairy King If Dairy King advertises, Creamland makes a higher profit if it chooses IF Dairy King doesn't advertise, Creamland makes a higher profit if it chooses Suppose that both firms start off not advertising. If the firms act independently, what strategies will they end up choosing? O Creamland will choose to advertise and Dairy King will choose not to advertise. Creamland will choose not to advertise and Dairy King will choose to advertise. Both firms will choose to advertise. Both firms will choose not to advertise.
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