subject
Business, 13.05.2021 20:20 yurlgurllmay

Two companies own adjacent natural gas fields. Under the two fields is a common pool of natural gas worth $100 million. Drilling a well costs $10 million, and each company can drill either 1 or 2 wells. Two wells is sufficient to extract all the gas, and the gas is split between the companies based on how many wells they've drilled: if each company has one or two wells, they each get 50%, but if one company has two wells and the other has only one, then the company with two wells gets two thirds of the gas and the company with one well gets only one third. A socially optimal solution would be for each company to drill : a. 2 wells, but the Nash equilibrium is for one company to drill 1 well and the other company to drill 2 wells
b. 2 wells, but the Nash equilibrium is for each company to drill i well.
c. 1 well, and the Nash equilibrium is for each company to drill one well
d. 1 well but the Nash equilibrium is for each company to drill two wells

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 19:40
Alocation analysis has been narrowed down to two locations, akron and boston. the main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. the scores for raw materials, transportation, and labor are for akron 60, 80, and 70, respectively; for boston 70, 50, and 90, respectively. given this information and a minimum acceptable composite score of 75, we can say that the manager should:
Answers: 3
question
Business, 22.06.2019 05:30
Sally is buying a home and the closing date is set for april 20th. the annual property taxes are $1,234.00 and have not been paid yet. using actual days, how much will the buyer be credited and the seller be debited
Answers: 2
question
Business, 22.06.2019 08:00
Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.
Answers: 3
question
Business, 22.06.2019 14:30
You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should
Answers: 1
You know the right answer?
Two companies own adjacent natural gas fields. Under the two fields is a common pool of natural gas...
Questions
question
Mathematics, 06.05.2020 02:23
question
Mathematics, 06.05.2020 02:23
question
Mathematics, 06.05.2020 02:23
question
Biology, 06.05.2020 02:23
question
Mathematics, 06.05.2020 02:23
Questions on the website: 13722361