Business, 24.04.2020 15:42 ajernandes01

Consider a remote town in which two restaurants, All-You-Can-Eat Cafe and GoodGrub Diner, operate in a duopoly. Both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. Both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the cleaning.
If neither restaurant cleans, each will earn $13,000; alternatively, if they both hire workers to clean, each will earn only $10,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $18,000, and the other restaurant will make only $6,000.
1. Complete the following payoff matrix using the previous information. (Note: All-You-Can-Eat Cafe and GoodGrub Diner are both profit-maximizing firms.)
GoodGrub Diner
All-You-Can-Eat Cafe Cleans Up Doesn't Clean Up
Cleans Up
Doesn't Clean Up
2. If All-You-Can-Eat Cafe and GoodGrub Diner decide to collude, the outcome of this game is as follows:
All-You-Can-Eat Cafe (clean/does not clean) and GoodGrub Diner (clean/does not clean) .
3. If both restaurants decide to cheat and behave noncooperatively, the outcome reflecting the unique Nash equilibrium of this game is as follows:
All-You-Can-Eat Cafe (clean/does not clean) and GoodGrub Diner(clean/does not clean) .

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 18:20

Which of the following is intended to demonstrate to an employer the importance of cooperating with workers? a. a collective agreement. b. a stock offer. c. a boost in production. d. a work slowdown. 2b2t

Answers: 2

Answer

Business, 22.06.2019 10:30

Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisions involving police practice. be sure to explain how math is used in police as they work through each scenario.

Answers: 1

Answer

Business, 22.06.2019 23:00

Customers arrive at rich dunn's styling shop at a rate of 3 per hour, distributed in a poisson fashion. rich can perform an average of 5 haircuts per hour, according to a negative exponential distribution.a) the average number of customers waiting for haircuts= customersb) the average number of customers in the shop= customersc) the average time a customer waits until it is his or her turn= minutesd) the average time a customer spends in the shop= minutese) the percentage of time that rich is busy= percent

Answers: 3

Answer

Business, 23.06.2019 00:50

On december 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: accounts receivable, debit balance of $97,900; allowance for doubtful accounts, credit balance of $1,031. what amount should be debited to bad debts expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

Answers: 1

Answer

You know the right answer?

Consider a remote town in which two restaurants, All-You-Can-Eat Cafe and GoodGrub Diner, operate in...

Questions