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this is the final question. please help me and thank you in advance QUESTION 3 (CLO3) Assuming there are two companies selling personal computers.Company Jackfruit
this is the final question. please help me and thank you in advance
QUESTION 3 (CLO3) Assuming there are two companies selling personal computers.Company Jackfruit Computers and Company Mangoes Computer. They both have an inventory of personal computers that they would like to sell before a new generation of faster, cheaper machines is introduced. The question facing each competitor is whether or not they should widely advertise a "close out" sale on these discontinued items, or instead let excess inventory work itself off over the next few months. The net revenue to each firm in millions of $, is depicted in the payoff matrixbelow: Mangoes Advertise Don't advertise M: M M: $2 Advertise $5 $5 Jackfruit U: U: $20 M: $20 M: $10 Don't advertise U $2 U: $10 a. Determine the dominant strategy for each firm. (5) b. Would collusion work in this case? Explain. (5) [Total: 10 marks] (TOTAL: 50 Marks) (GRAND TOTAL: 100 MARKS) Step by Step Solution
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