Two startups, Ultra and Soar, have develop fairly similar ridesharing apps and are competing for customers by deciding how much to advertise their app. Let Ai ≥ 0 be the advertising level of firm i. The profits of each firm depend on how much it advertises its app but also on the advertising level of its opponent A−i . The higher the advertising levels the more visibility ridesharing apps and demand increases. In particular, firm i’s profits are ui(Ai , A−i) = (90 + Ai + A−i)Ai − 2A2 i . Ultra chooses A1 first and, after observing it, Soar chooses A2.

(a) Draw the extensive form. Which are the proper subgames?
(b) Find the SPNE. How does it compare to the NE of the simultaneous move game?
(c) Is there a first-mover advantage in the market? Justify your answer

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Which of these is not a result of regular exercise

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.