Answer:
b. both firms will reduce their price.
Explanation:
The Nash equilibrium is a decision-making theorem that lies inside the game theory where the player could attain the expected result by not deviating to the beginning strategy. In this, the strategy of the each player is optimal at the time when the other player decisions are relevant
So as per the given situation, both the firm should decrease their price
hence the option b is correct
Answer:
The interest paid on loan was at floating rate which means that the investor earning was lower because of lower interest rate than the interest rate he was expecting.
Explanation:
Because the bond was dependent on the floating rate in the market. The borrower kept paying the investor at the floating rate not at the fixed rate which would had increased its investment worth to $1800. As $1600 is less than $1800 so the interest rate agreed was floating rate interest.
Answer:
something of value must be given by party.
Explanation:
In the contract agreements, the term consideration means something of value offered by one part in exchange for other goods, services, or promises. In most cases, consideration is in monetary form, although money is not the only valuable item acceptable as consideration. Consideration is the benefit that one enjoys by fulfilling their obligation in a contract.
For contacts to be valid, there must be a consideration. Only lawful valuable can be considered as consideration.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Decrease.
b) Increase.
c) Remain constant.
d) Fluctuate randomly around its equilibrium value.
And the correct answer is the option B: Increase.
Explanation:
To begin with, in the microeconomics theory the supply curve is known for being the one who shows what quantity will be supplied by the offerents given a particular amount of price that is already establish by the interaction between the forces of the market given a perfect competitive market as an example. So in that graphic the supply curve will always have a positive slope and that is due to the law of supply that establishes that there is a direct relationship between the price a good and its supply, so that means that if the price a good increases its quantity supplied will increase as well with it.
Answer:
A. trade stifles the development of new industries that could be more efficient than the existing ones.
Explanation: