There are two movie theaters in the town of Harkinsville: Modern Multiplex, which shows first-run movies, and Sticky Shoe, which shows movies that have been out for a while at a cheaper price. The demand for movies at Modern Multiplex is given by QMM 5 14 2 PMM 1 PSS, while the demand for movies at Sticky Shoe is QSS 5 8 2 2PSS PMM, where prices are in dollars and quantities are measured in hundreds of moviegoers. Modern Multiplex has a per-customer cost of $4, while Sticky Shoe has a percustomer cost of only $2. (a) From the demand equations alone, what indicates whether Mod- ern Multiplex and Sticky Shoe offer services that are substitutes or complements?
(b) Write the profit function for each theater in terms of Pss and PMM Find each theater's best-response rule.
(c) Find the Nash equilibrium price, quantity, and profit for each theater.
(d) What would each theater's price, quantity, and profit be if the two decided to collude to maximize joint profits in this market? Why isn't the collusive outcome a Nash equilibrium?

Last week paul, ceo of quality furniture in south carolina, traveled to europe to visit customers. while overseas, paul checked his e-mail daily and showed his company's website to customers, explaining how the website will them place orders and receive merchandise more quickly. after visiting the last customer friday morning, paul was able to return to the corporate office in south carolina to meet with his board of directors that night. is the "shrinking" of time and space with air travel and electronic media.

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)

Petra contracted to paint bret’s house for $2,000. after beginning the job, petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells bret she wants another $500 to finish the job. bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. is bret legally obligated to pay the extra $500?