18. You are a pricing manager at Argyle Inc.–A medium sized firm that recently introduced a new product into the market. Argyle’s only competitor is Baker Company, which is significantly smaller than Argyle. The management of Argyle has decided to pursue a short term strategy of maximizing this quarter’s revenue, and you are in charge of formulating a strategy that will permitt the firm to do so. After talking with an employee who was recently hired from the Baker Company, you are confident that (a) Baker is constrained to charge $10 or $20 for its product, (b) Baker’s goal is to maximize this quarter’s profits, and (c) Baker’s relevant unit cost s are identical to yours. You have been authorized to price the product at two possible levels ($5 or $10) and know that your relevant cost are $2 per unit. The marketing department has provided the following information about the expected number of units sold (in millions) this quarter at various prices to help you formulate your decision: Argyle price $5 5 10 10 Barker price $10 20 10 20 Argyle quantity (millions of units) 3 3 1 1 Baker quantity (millions of units) 2 1 2 1 Argyle and baker currently set prices at the same time. However, Argyle can become first mover by spending $2 miliion on computer equipment that would permit it to set prices before Baker. Determine Argyle’s optimal price wheter you should invest the $2 million. Jawaban: Baker Price $10 $20 Argyle $5 15,16 15,18 $10 10,16 10,18 Harga yang optimal adalah pada $5, mengingat strategi tersebut adalah dominant strategy. Argyle seharusya tidak invest $2 million karena biaya menjadi first mover pada kondisi ini tidak sepadan dengan payoff yang didapat 19. You are the manager of GearNet and must decide how many internet hubs to produce to maximize your firm profit. GearNet and its only rival (NetWorks) sell dual-speed internet hubs that are identical from consumer’s perpectives. The market price for hubs depends on the total quantity produced by the two firms. A survey reveals that the market price of hubs depends on total market output as follows: Combined Hub Production of GearNet and NetWorks 500 units 750 units 1000 units Market Price of Hubs (per unit) $120 100 90 GearNet and NetWorks each use labor. Keduanya memproduksi 500 units.$70) x 250 = $7.000.000. maka market price adalah $90. maka contribution nya adalah ($100 .000 dari fixed costs dengan alternatif output yang bisa dihasilkan kedua perusahaan.000 pasti ada baik memproduksi 250 maupun 500 unit (250x$80=$20.000). 500x$40=$20. its machines were purchased three years ago and are being depreciated according to the straight line method.$70) x 250 = $12. dan contribution untuk keduanya adalah ($90 . Fixed cost sebesar $20. karena keduanya adalah variable cost. $15000 $10000.500. maka market price adalah $100. Depreciation adalah fixed/sunk cost. Contribution Margin tiap perusahaan pada kondisi ini adalah ($120 . materials. gearNet purchases labor and materials on an as-needed basis.$70) x 500 = $15. . Jika salah satu produksi 250 units dan yang lainnya produksi 500 units. GearNet’s accounting department has provided the following data about its unit production costs: GearNet’s Unit cost for an Output of: 250 units 500 units $40 $40 30 30 80 40 Item Direct labor Direct materials Depreciation charge Reports from industry expert suggest that NetWorks’ cost structure is similar to GearNet’s cost structure and that technological constraint require each firm to produce either 250 hubs or 500 hubs.$70) x 500 = $10. Marginal cost didapat dari jumlah direct labor dan direct material sebesar $40+$30=$70.500 dan ($100 . $7500 GearNet Strategy 250 units 500 units 500 units $7500. total market output sebesar 500 units dan harganya $120. Jawaban: Direct labor dan direct materials termasuk relevant costs. $10000 Jika masing-masing perusahaan memproduksi 250 units. and machines to produce output. sehingga menjadikannya tidak relevan terhadap keputusan yang akan diambil. Payoff matrix (normal form) berikut menunjukkan payoff (contributions) yang relevan untuk menutupi $20. NetWorks 250 units $12500.000 . $12500 $15000. and then determine whether GearNet should produce 250 hubs or 500 hubs. Identify the costs that are relevant for your decision. which almost 67 million users in the United States utilize.-based Qualcomm and European –based T-Mobile are contemplating infrastrusture investments in a developing mobile telephone market. T-mobile uses a global systems for mobile communication (GSM) technology that has become standard in Europe and Asia.5 $9. but also on that adoptd by its rival. Then. Jawaban: Qualcomm Strategy CDMA GSM T-Mobile CDMA $16. $18 Ada dua Nash equilibria untuk coordination game ini: (1) Qualcomm dan T-Mobile sama-sama mengadopsi teknologi CDMA. T-Mobile’s Projected cost of installing GSM technology is $950 million.9 $16. As shown in the accompanying table.95 $14. dan (2) Qualcomm dan T-Mobile sama-sama mengadopsi teknologi GSM Sebagai solusi.5 billion.9 $15.95 Construct the normal form of this game.8 $14.000. 20. explain the economics forces that give rise to the structure of the payoffs and any difficulties the companies might have in achieving Nash equilibrium in the new market. 21. In contrast. $12 $14. Atau alternatif lain. $7 GSM $12. Qualcomm presently uses a code-division multiple access (CDMA) technology. Due to political .S. while the cost of installing CDMA technology is $2. $8 $13. each company’s projected revenues depend not only on the technology it adopts. kedua perusahaan dapat “bernegosisasi” dan menyepakati satu teknologi saja. Japanese officials are considering a new tariff on imported pork products from the United States in an attempt to reduce Japan’s reliance on US pork.8 T-Mobile’s Revenues $8. pemerintah Iraq menentukan teknologi mana yang akan diterapkan di negara tersebut. Projected revenues for different combinations of mobile technology standards (in billions) Standards (Qualcomm-T-Mobile) CDMA-GSM CDMA-CDMA GSM-CDMA GSM-GSM Qualcomm’s revenues $12.8 billion to install GSM technology. Qualcomm estimates that it will cost $900 million to install it CDMA technology and $1. Each company must (simultaneously and independently) decide which of these two technologies to introduce in the new market. Suppose U.5 $18. Inequilibrium untuk tiap perusahaan akan menghasilkan payoff sebesar $10.Strategi dominan masing-masing perusahaan pada one-shot game adalah untuk memproduksi 500 units. 66 billion while welfare in the United States is $44. projected welfare in Japan is $4. 1:00 PM. Would you recommend that the office manager invest more time monitoring the productivity of her clerical staff? Explain. Jawaban: Game tersebut dilustrasikan melalui payoff matrix berikut (dalam billions U. $4. Tariff $43.pressure. $4. Karyawan mengetahui jika setelah manager meninggalkan kantor 9 a.8 percent to $4.2.76 billion.8 Nash equilibrium untuk U. Determine the Nash equilibrium outcome when policy makers in the two countries simultaneously but independently make tariff decisions in a myopic (one-shot) setting. welfare is projected at $43. social welfare in Japan’s economy will remain at $4. Mengetahui celah ini karyawan pun memanfaatkannya untuk “goofing off” (santai pada jam kerja). Bertahannya kesepakatan untuk impose tanpa tarif tersebut bergantung pada apakah game pada kondisi pengulangan tak terhingga.8 billion and social welfare in the United States will remain at $44 billion.2 billion. Is it possible for the two countries to improve their social welfare by “agreeing” to different strategies? Explain. dia tidak akan kembali sampai pukul 11 a.S. Despite the fact that she regularly monitor her clerical staff four times each a day-at 9:00 AM. $4. Officials in both Japan and the US must assess the social welfare ramifications of their tariff decisions. 22.m.S. 11:00 Am. If both countries imposes a new tariff. waktu dan strategi monitoring yang dia lakukan sifatnya predictable. Finally.85 billion in Japan.5 percent to $43. $4. Namun bagaimanapun juga. Melainkan.78. If japan does not impose a tariff but the US does. welfare in the US declines 0. negara-negara tersebut memakai strategi trigger dan tingkat suku bunga yang cukup rendah.66 No tariff $43. Reports from a reliable think-tank indicate the following: If neither country imposes a new tariff. Jawaban: Sebaiknya office manager tidak menaruh waktu lebih pada monitoring. the US International Trade Representative’s (ITR) office is also considering a new tariff on imported steel from Japan. Strategi terbaik adalah .66 billion in the US and $4.76 $44. Maslahnya bukan pada apakah waktu yang dialokasikan untuk monitoring terlalu sedikit. kedua negara akan mendapat welfare yang lebih besar dengan “sepakat” untuk impose tanpa tarif. An office manager is concerned with declining productivity. if the US dos not impose a tariff but Japan does.78 billion and welfare in japan declines by 0. dan Japan adalah masing-masing meng-impose tarifnya. And again 3:00 PM – office productivity has declined 30 percent since she assumed the helm one year ago.S.m.66. dollars): Japan Strategies Tariff No tariff U.85 $44. You manage a company that competes in an industry that comprised of five equalsized firms. Jika perusahaan yang saya manage berkomitmen untuk tidak mengeluarkan sepeser pun untuk legal lobbying activity. Sehingga keuntungan menjadi $5 million karena dipotong dana patungan lobbying. dan kami pun mendapat keuntungan optimal sebesar $6 million. Namun jika kompetitor berpikiran sama dan tidak ada yang mau mengeluarkan sepeser pun untuk dana lobbying. Discuss your strategy for improving your company’s profits. maka satu atau lebih dari perusahaan lain akan mengumpulkan dana (patungan) untuk dana lobbying sebesar $5 million tersebut.mengacak jadwal monitoring tiap harinya sehingga karyawan tidak bisa lagi menduga atau menghafal celah bagi mereka untuk tidak bekerja secara produktif. terpaksa pada akhirnya kelima perusahaan perlu menyepakati patungan masing-masing sebesar $1 million guna menutup dana lobbying dan mensukseskan disetujui tarif tersebut. . 23. Jawaban: Jika Congress setuju akan implementasi tarif tersebut maka tiap perusahaan akan mendapat jatah $6 million ($30 million/5). Ar ecent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million –and that it would only take $5million in expenditures on (legal) lobbying activities to induce Congress to implement such a tariff.