Solve for the Stackelberg subgame-perfect Nash equilibrium for the game tree illustrated to the right. What is the joint profit maximizing outcome? Why is that not the outcome of this game? A. The game does not have a Nash equililbrium. B. The Nash equilibrium is for Firm 1 to produce 360 units and for Firm 2 to produce 64 units if Firm 1 produces 180 units, 64 if Firm 1 produces 240, and 48 if Firm 1 produces 360. C. The Nash equilibrium is for Firm 1 to produce 360 units and for Firm 2 to produce 64 units if Firm 1 produces 180 units, 48 if Firm 1 produces 240, and 48 if Firm 1 produces 360. D. The Nash equilibrium is for Firm 1 to produce 240 units and for Firm 2 to produce 64 units if Firm 1 produces 180 units, 64 if Firm 1 produces 240, and 48 if Firm 1 produces 360. E. The Nash equilibrium is for Firm 1 to produce 360 units and for Firm 2 to produce 64 units if Firm 1 produces 180 units, 64 if Firm 1 produces 240, and 64 if Firm 1 produces 360.

Jameson manages a well-known cell phone company. this company has been voted as having the best cell-phone service. consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. jameson knows that the company's product far surpasses that of the competition. one thing has been bothering him, though. in order to put so many resources into ensuring the best service, jameson has cut back on employees at the firm's customer call center. recently, consumers have begun complaining about long wait times when they call in with a problem or concern. although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. jameson does not understand why consumers are getting so upset. he believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "after all," he says, "they can't have it all. if i invest more in customer service, that means less investment on ensuring the quality of our product offering."refer to scenario. jameson has asked you, a marketing consultant, to give him advice. he cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. you suggest that jameson has a narrowly defined view of the company's product offering. you tell jameson that successful marketers should define their products as what they

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

When you hire an independent contractor you don't have to pay the contractors what