My answer for 6 correct? ccs,mvn biguous creet on The U.S. producer Boeing, and

Question

My answer for 6 correct? ccs,mvn biguous creet on The U.S. producer Boeing, and the European Airbus are contemplating the next generation rm generation of air carrier. if both produce their respective models, then each would lose $50 mtey htoh world market is just not large enough to enable either to capture potential scale economies world market). If neither produce, then each one's n other does not, then the producer will gain $500 million. Answer questions 4-9 accordingly. fuel efficient eac th at if they had to share the et gain would of course be zero. If either one produces while the 4) What is statement is correct regarding the strategies of each company? A) Do not produce. This is because if they both produce they will have a loss. C) If Airbus starts producing first, Boeing should not produce. e st hen the other company knows that if it also enters, it will not be able to cover costs. oth B and C are true. 5) Which of the following outcomes is a Nash equilibrium? A) Neither company should produce C) Being should produce and Airbus should not. D) Both companies should produce B) Airbus should produce and Boing should not. ES oth B and C are true . What is the correct strategy for a government seekin Subsidize its producer if this allows it to enter first. B) Subsidize its producer even if the competitor does not leave the market. C) Do not subsidize. D) None of the answer is true.

Explanation / Answer

6)

Subsidize its producer. If this allows it to enter first

the above is the answer

because this will help the producer to coup up with higher costs at the start.

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