The Managers of Alpha and Beta Must Make Repeated Advertising

question 41

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. When Alpha punishes Beta with a retaliatory adjustment in its advertising expenditures,Beta will suffer an undiscounted penalty of $_________ for each month that punishment continues.

• A)$1,500
• B)$2,000
• C)$3,000
• D)$4,000
• E)$5,000

---

Definitions:

Business Clichés

Overused phrases or expressions in the business context, which often lack originality or impact due to their frequent use.

Cross-cultural Communication

The process of recognizing, understanding, and respecting cultural differences to improve communication between individuals from different cultures.

Credibility

The quality of being trusted and believed in, often based on reputation or evidence.

Concrete Words

Words that describe specific, observable things, people, or places, as opposed to abstract concepts.