The Nash equilibrium of this game is for Jet Cruises to ________ and Easy Sail to ________.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; Ad
B) No Ad; Ad
C) Ad; No Ad
D) No Ad; No Ad
A) Ad; Ad
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What is the term for the amount of money that a firm receives from the sale of its output?
a. total gross profit b. net revenue c. total revenue d. total net profit
In Singapore the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift both the demand and supply curves to the right by $5,000. B) The tax will shift the demand curve to the right by $5,000. C) The tax will shift the supply curve to the left by $5,000. D) The tax will shift the demand curve to the left by $5,000.