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The following is a payoff matrix showing profit in millions of dollars when two companies simultaneously decide on various advertising budgets ($1 million, $2 million, or $3 million):
Pizza Hut
$1 mill
$2 mill
$3 mill
$90 / $130
75 / 135
75 / 140
Papa Johns
70 / 115
70 / 120
60 / 125
75 / 100
80 / 95
65 / 90
a. In the first round of strategy elimination (when all three possible budgets are under consideration), which ad budget would the companies exclude?
b. After the first round of elimination (previous question), would either company make a second-round elimination?
c. What would be the likely outcome of this simultaneous advertising decision (i.e. what ad budget would each company end up choosing)?
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Why did Donald Trump add Canada to the NAFTA?
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For out Back Steakhouse, seating capacity is limited in the short run.
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The corporate tax rate is 35%. Calculate the weighted average cost of capital for almost There Inc.
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