Juan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $8,000. If they both advertise on radio, each will earn a profit of $14,000. If neither advertises at all, each will earn a profit of $20,000. If one advertises on TV and other advertises on radio, then the one advertising on TV will earn $12,000 and the other will earn $10,000. If one advertises on TV and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000. If both follow their dominant strategy, then Juan Pablo will: a. advertise on TV and earn $8,000.
b. not advertise and earn $20,000.
c. advertise on TV and earn $22,000.
d. advertise on radio and earn $14,000

D. Advertise on radio and earn $14,000

Explanation:

Dominant strategy is the strategy that will still be better than the strategy of a competitor regardless of whatever that competitor does.

We are told that both Juan Pablo and Zak follow their dominant strategy. From the question, the dominant strategy is when they both advertise on radio because they each get a profit of $14,000 compared to $8000 when they both advertise on radio. So when they both advertise on TV is more lucrative and therefore it's the dominant strategy for both of them. Therefore, in conclusion, I will advise Jan Pablo should advertise on radio and earn a profit of $14000 as his dominant strategy

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o