(See Problem 2

question 17

Multiple Choice

(See Problem 2.) Arthur and Bertha are asked by their boss to vote on a company policy. Each of them will be allowed to vote for one of three possible policies, A, B, and C. Arthur likes A best, B second best, and C least. Bertha likes B best, A second best, and C least. The money value to Arthur of outcome C is $0, outcome B is $1, and outcome A is $4. The money value to Bertha of outcome C is $0, outcome B is $4, and outcome A is $1. The boss likes outcome C best, but if Arthur and Bertha both vote for one of the other outcomes, he will pick the outcome they voted for. If Arthur and Bertha vote for different outcomes, the boss will pick C. Arthur and Bertha know this is the case. They are not allowed to communicate with each other, and each decides to use a mixed strategy in which each randomizes between voting for A or for B. What is the mixed strategy equilibrium for Arthur and Bertha in this game?

• A) Arthur votes for A with probabilityand for B with probability. Bertha votes for A with probabilityand for B with probability.
• B) Arthur votes for A with probabilityand for B with probability. Bertha votes for A with probabilityand for B with probability..
• C) .Arthur votes for A with probabilityand for B with probability. Bertha votes for A with probabilityand for B with probability
• D) Arthur and Bertha each votes for A with probabilityand for B with probability
• E) Arthur votes for A and Bertha votes for B.

---

Definitions:

Profit Center

A segment or branch of a business responsible for generating its own revenue and profit.

Data Processing Department

A department within an organization that processes and manages data, turning raw data into usable information.

Tax Firm

is a company that specializes in offering tax services, including tax preparation, consultation, and filing for individuals and organizations.

Cost Center

A department or a section of a business that incurs costs but does not directly generate revenues.