Question 4 In The Following Matrix For The Profits Of Two Pizza Firms With The Decision Whether Or Not To Offer Free De 1 (32.67 KiB) Viewed 16 times
Question 4 In The Following Matrix For The Profits Of Two Pizza Firms With The Decision Whether Or Not To Offer Free De 2 (41.9 KiB) Viewed 16 times
Question 4 In the following matrix for the profits of two pizza firms with the decision whether or not to offer "free delivery" what is the dominant outcome. Explain why. You deliver You don't deliver Rival gets $8000 Rival gets $3000 Rival delivers You get You get $3000 $2000 Rival gets $6000 Rival gets $2000 Rival doesn't You get deliver You get $6000 $8000
The following diagram from the textbook for a monopolistically competitive firm in the long run is probably the most complicated we studied this semester. A friend looks over your shoulder and asks "what is happening here?" In everyday language (not the fancy textbook language) explain the message in this diagram and how it might apply to his life. MC AC T Price ($) a P₁ U S MR MR Do Q₁ Qo Quantity (a) Profit induces entry; shift to zero profit D₁
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