Consider the Following Game in Which Sally Can Play T

question 10

Multiple Choice

Consider the following game in which Sally can play T or B and John chooses between L or R.Each player makes their choice simultaneously.If Sally chooses T and John chooses L, Sally gets a payoff of 3 and John has a payoff of 7.If Sally plays T and John R, Sally's payoff is 2 and John gets 1.If Sally Chooses B and John L, the payoffs are 1 to Sally and 2 to John.Finally, if Sally chooses B and John R, the payoffs are 4 to Sally and 3 to John.What is the Nash equilibria of the game?

• A)(T, R)
• B)(B,R)
• C)(T,L) and (B,R)
• D)(T,L)
• E)None of the above.

---

Definitions:

Conversion Costs

Expenses incurred in the process of converting raw materials into finished products, typically including labor and overhead.

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Work in Process Account

An account that tracks the costs of unfinished goods in the manufacturing process at any given time.

Process Costing

This is an accounting methodology used to allocate costs to units of product in industries where the production process is continuous and homogenous.