Table 22-2 Three Longtime Friends-Allen, Brian, and Cody-Are Deciding How They Will

question 293

Multiple Choice

Table 22-2
Three longtime friends-Allen, Brian, and Cody-are deciding how they will spend their Sunday afternoon. They all agree that they should do one of three things: go to a movie, play golf, or go to a baseball game. They also agree that they will have two pairwise votes to determine how to spend their afternoon, with the majority determining the outcome on each vote. The first, second, and third choices for each person are as indicated in the table below.
-Refer to Table 22-2. Which of the following statements is correct regarding the Condorcet paradox and the results of pairwise voting by Allen, Brian, and Cody?

• A)The paradox implies that pairwise voting never produces transitive preferences, and so the voting by Allen, Brian, and Cody fails to produce transitive preferences.
• B)The paradox implies that pairwise voting sometimes (but not always) produces transitive preferences, and the voting by Allen, Brian, and Cody does produce transitive preferences.
• C)The paradox implies that pairwise voting sometimes (but not always) fails to produce transitive preferences, and the voting by Allen, Brian, and Cody fails to produce transitive preferences.
• D)The paradox does not apply to the case at hand, because Brian's preferences are not individually transitive.

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Definitions:

Cost of Goods Sold

Costs directly incurred in the creation of a company's sold products.

Work in Process

Inventory that includes materials that have been partially completed but not yet ready for sale, representing the production in progress.

Control Account

An account used in accounting to summarize the details of a subsidiary ledger, ensuring consistency and simplification in the general ledger.

Manufacturing Overhead

The indirect costs associated with manufacturing, including expenses such as rent, utilities, and salaries of employees not directly involved in production.