- At A Time When Demand For Ready To Eat Cereal Was Stagnant A Spokesperson For The Cereal Maker Kellogg S Was Quoted As 1 (90.07 KiB) Viewed 12 times
- At A Time When Demand For Ready To Eat Cereal Was Stagnant A Spokesperson For The Cereal Maker Kellogg S Was Quoted As 2 (90.07 KiB) Viewed 12 times
At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg's was quoted as saying, " . . . for the past several years, our individual
company growth has come out of the other fellow's hide." Kellogg's has been producing cereal since 1906 and continues to implement strategies that make it a leader in the cereal industry. Suppose that when Kellogg's and its largest rival advertise, each
company earns $0 billion in profits. When neither
company advertises, each
company earns profits of $12 billion. If one
company advertises and the other does not, the
company that advertises earns $52 billion and the
company that does not advertise loses $4 billion. For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising? Instruction: Enter your response as a percentage rounded to the nearest whole number.