-Disney and Fox Must Decide When to Release Their Next

question 275

Multiple Choice

-Disney and Fox must decide when to release their next films. The revenues received by each studio depend in part on when the other studio releases its film. Each studio can release its film at Thanksgiving or at Christmas. The revenues received by each studio, in millions of dollars, are depicted in the payoff matrix above. Which of the following statements CORRECTLY describes Fox's strategy given what Disney's release choice may be?

• A) If Disney chooses a Thanksgiving release, Fox should choose a Christmas release.
• B) If Disney chooses a Christmas release, Fox should choose a Thanksgiving release.
• C) Fox should release on Christmas regardless of what Disney does.
• D) Both answers A and B are correct.

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Definitions:

Rectifier

A device that converts alternating current (AC) to direct current (DC).

Converter

A device that changes electrical energy from one form to another, such as AC to DC or vice versa.

DC Bus

A common electrical pathway used in DC power systems, linking the power supply, converters, and the loads.

VFD

A Variable Frequency Drive is a motor controller device that operates an electric motor by adjusting the voltage and frequency provided to it.