Table 12.3 Payoffs to Villager 1 and Villager 2 in a Road

question 28

Multiple Choice

Table 12.3
Payoffs to Villager 1 and Villager 2 in a Road Maintenance Game
(R is the benefits of a maintained road and the project requires a total of L hours of labor,therefore R-L/2>0 is the net utility payoff)

-According to table 12.3,what is the Nash equilibrium if this game is non-cooperative?

• A) Villager 1 chooses shirking,Villager 2 chooses shirking.
• B) Villager 1 chooses shirking,Villager 2 chooses participating.
• C) Villager 1 chooses participating,Villager 2 chooses shirking.
• D) Villager 1 chooses participating,Villager 2 chooses participating.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly attributable to the finished product, including indirect labor, materials, and other expenses.

Estimated Total

An approximation of the sum or magnitude of a particular set of values or items, projected from sample data or generated through analysis.

Unit Product Cost

The total cost (both variable and fixed) associated with producing one unit of a product.

Total Job Cost

The sum of all costs assigned to a specific job, including materials, labor, and overhead.