Suppose that mcdonalds and yum brands are the sole producers of a quadruple-decker chicken and hamburger sandwich. the two firms currently charge the same price for their products. if neither firm reduces the price of its quadruple-decker chicken and hamburger sandwich, each firm earns $40 million in profit. if both firms reduce their prices, then each firm will earn $9 million in profit. if one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $70 million while the other firm will earn a profit of $2 million.

assuming that collusion is not a possibility, the nash equilibrium occurs when

Both companies will reduce their prices.

Explanation:

Given that collusion is not possible between McDonald's and Yum, both companies will try to earn more money by reducing their prices and increasing their profits to $70 million. They will do this hoping that the other firm doesn't modify its pricing strategy.

answer///a road map;

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.