Two Partners Start a Business

question 16

Multiple Choice

Two partners start a business.Each has two possible strategies, spend full time or secretly take a second job and spend only part time on the business.Any profits that the business makes will be split equally between the two partners, regardless of whether they work full time or part time for the business.If a partner takes a second job, he will earn $60,000 from this job plus his share of profits from the business.If he spends full time on the business, his only source of income is his share of profits from this business.If both partners spend full time on the business, total profits will be $200,000.If one partner spends full time on the business and the other takes a second job, the business profits will be $80,000.If both partners take second job, the total business profits are $20,000.

• A)In the only Nash equilibrium for this game, both partners earn $70,000.
• B)In the only Nash equilibrium for this game, one partner earns $100,000 and the other earns $40,000.
• C)In the only Nash equilibrium for this game, both partners earn $100,000.
• D)This game has two Nash equilibria, one in which each partner has an income of $100,000 and one in which each partner has an income of $70,000.
• E)This game has no pure strategy Nash equilibria, but has a mixed strategy equilibrium.

Understand the structure and function of the sensory system in vertebrates.

Identify the specific roles of different parts of the eye and ear in the process of seeing and hearing.

Define and differentiate between types of sensory receptors and their stimuli.

Describe the process of signal integration and processing in sensory organs.

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Definitions:

Monopsonist

A market condition where there is only one buyer facing many sellers, giving the buyer substantial control over the market price.

Supply Curve

A visual diagram illustrating the connection between a product's price and the amount of the product that sellers are prepared to offer.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production volume changes.

Monopolist

An individual or company that holds a monopoly in a particular market, controlling the supply of a product or service and potentially its price.