(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.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose.

Depreciation

The method of spreading the expense of a physical asset across its lifespan, demonstrating the decline in its value as time progresses.

Asset

Economic resources owned by a business or individual, expected to provide future benefits or value.

Provide Services

The act of performing tasks or duties for clients or customers, often in exchange for payment, that does not result in the production of physical goods.