An incumbent firm (player 2) dominates an industry. a potential entrant (player 1) can choose to enter the market or to stay out. player 2, the incumbent, after observing the action of the entrant, chooses to let it enter the market (accomodate, represented by a) or start a price war (fight represented by f). fighting a price war would prevent player 1 from entering the market, but hurt also the incumbent the payoffs for the players in each of the possible outcomes are given by the pair (x, y) at the leaves of the following game tree: x denotes the payoff of player 1 (the entrant) and y denotes the payoff of player 2 (the incumbent) entrant out in incumbent (1,2) а f (2,1) (0,0) assume that both the entrant and the incumbent have perfect information (they know the payoffs associated with each outcome) and care only about maximizing their payoff. what will be the outcome of the game? select one:
a. the incumbent and the entrant will merge and share their monopoly rents.
b. it is not possible to say.
c. the entrant will go in; the incumbent will fight (f)
d. both the entrant and the incumbent will exit the industry and enjoy their fallback position
e. the entrant will go in; the incumbent will accomodate (a)
f. the entrant will choose to stay out.

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash

mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?