Two Partners Start a Business

question 21

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 $80,000 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 $100,000.
• B)In the only Nash equilibrium for this game, one partner earns $120,000 and the other earns $40,000.
• C)In the only Nash equilibrium for this game, both partners earn $90,000.
• 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 $90,000.
• E)This game has no pure strategy Nash equilibria, but has a mixed strategy equilibrium.

Analyze logical instructions and predict their outcomes based on given values.

Understand the functionalities of memory maps and identify components such as word, register, bit, file, and table.

Describe the operation and applications of timers, counters, and their programming in PLCs.

Recognize and interpret the function and application of masked move (MVM) instructions.

---

Definitions:

Owner's Equity

Owner's equity represents the owner's claim on the assets of a business, calculated as the business's assets minus its liabilities.

Assets Liabilities

Assets are resources owned by a business that have economic value, while liabilities are obligations of a business to transfer resources to another entity in the future.

Accounting Period

A specific period of time used for financial reporting purposes, usually a quarter or a year, to measure business activities and prepare financial statements.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debits and credits, ensuring that total debits match total credits.