The Managers of Alpha and Beta Must Make Repeated Advertising

question 1

Multiple Choice

The managers of Alpha and Beta must make repeated advertising decisions simultaneously at the beginning of every month.They choose either low or high levels of advertising expenditure.They both employ a discount rate of 2.5 percent per month. If both firms cooperate,Alpha will choose a _________ level of advertising and Beta will choose a _________ level of advertising.

• A)high; high
• B)high; low
• C)low; high
• D)low; low

---

Definitions:

Participative Management

A management style that encourages the involvement and contribution of all employees in decision-making processes.

Equity Norm

The principle that individuals in a group should receive benefits proportional to their contributions.

Organization

An entity comprised of multiple individuals working together in a structured manner towards common goals or objectives.

Rewards

Benefits, both intrinsic and extrinsic, given to individuals or groups for achieving specific goals or performing at a high level.