Business, 08.03.2021 19:30, glowbaby123
Two firms, Boomburgs and ABC X-Plode, both sell the same fireworks bundle. If they sell their fireworks at the manufacturer's suggested retail price (MSRP), they both sell 100 units a day. Each pays $10 to the wholesaler in order to stock its shelves. If either firm sells below MSRP while the other sells at MSRP, the firm with the lower price sells 175 units a day and the firm charging MSRP sells only 50. If both firms sell below MSRP, then each firm sells 125 units a day.
1st attempt
If MSRP is $20 and the below MSRP price is $15, calculate the following payoffs:
Profit for ABC X-Plode when both firms charge MSRP:
Profit for ABC X-Plode when it charges MSRP but Boomburgs charges below MSRP: $
Profit for ABC X-Plode when it charges below MSRP but Boomburgs charges MSRP: $
Profit for ABC X-Plode when both firms charge below MSRP: $
Answers: 3
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Two firms, Boomburgs and ABC X-Plode, both sell the same fireworks bundle. If they sell their firewo...
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