Use the Following Information to Answer Question

question 105

Multiple Choice

Use the following information to answer question:
Suppose that you are a manager.You are considering whether or not to monitor employees with the payoffs in the following normal form game.
-Management and a labor union are bargaining over how much of a $50 surplus to give to the union.The $50 is divisible up to one cent.The players have one-shot to reach an agreement.Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer.Both players get zero if the total amounts asked for exceed $50.Which of the following is true?

• A)There are multiple Nash equilibria.
• B)($25, $25) is a Nash equilibrium.
• C)A Nash equilibrium is also a perfect equilibrium.
• D)There are multiple Nash equilibria and ($25, $25) is a Nash equilibrium.

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Definitions:

Bank Reconciliation

The practice of ensuring that the figures in an organization's financial records for a cash account are in agreement with the relevant details on a bank statement.

Balance Per Bank

The amount of money in a company's bank account according to the bank's records at a specific point in time.

Bank Reconciliation

The procedure of reconciling the balance figures in a firm's accounting ledger for a cash account with the associated entries on a bank statement.

Segregation Of Duties

An internal control measure that divides responsibilities among different people to prevent fraud and errors.