please give me a clear answers.
Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negati In front of those numbers. 3. If the probability of rivals matching a price reduction is 90 percent, what is the expected payoff of a price cut? b. If the probability of rivals reducing price even though you don't is 1 percent, what is the expected payoff of not reducing pr $ C. Based on your answers to (a) and (b), should the firm cut its price? Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to in front of those numbers. a. If the probability of rivals matching a price reduction is 90 percent, what is the expected payoff of a price ci $ b. If the probability of rivals reducing price even though you don't is 1 percent, what is the expected payoff of r $ c. Based on your answers to (a) and (b), should the firm cut its price? Yes No There is not enough information to determine. The Economy Tomorrow According to the In the News below, IN THE NEW S Joe Camel Acquires Newport In a widely anticipated move. Reynolds American, producer of best-selling brand Camel, announced yesterday that it has agreed to buy Lorllard, maker of Newport, the number 1 menthol cigarette. The $25 bilion deal will combine the number 2 and number 3 egarette manufacturers. The new company, retaining the Reynolds Amenican name, wil have 35 percent of the U.S. market, running second io Alria's 47 percent share. As part of the deal, Imperial Tobacco will purchase several of Lorillards brands, including Blu, its popular e-cigarette, and end up with 10 percent of the market. Liggett Veclor wilkeep 4 percent of the maket. Prior to merging. Roynolds had 25 percent of the market and Lorillard had 12 percent, with imperiat at 8 percent. Reynolds exyects to cut annuat conts by 5600 mallion through eliminating overlap in saies. production, and cvetteed costs Consumers worry that reduced competion will raise cigarette. prices and further lint choices. The deal must win antitust approval before it is finalized trome teven iriont, hay 15 ill 2014 Instructions: Enter your responses as a whole number. a. The concentration ratio in the cigarette industry (i) Prior to the merger? percent (ii) After the merger? percent b. The maximum value of the Herfindahl-Hirshman Index? (i) Prior to the merger? (ii) After the merger? a. In the graph below, draw the furmis demand curve. (Note. The marginal revenue curve is already drawn for you) Instructions: Use the tool provided 'Demand' to draw the demand curve point by point (plot 9 points total). Your Graph Score: 100s Demand and MR Curves Instructions: Enter your responses as a whole number. b. identify the profit-maximizing rate of output and price in a situation where marginal cost ls constant at 517 per unit Output: units Prices 5
