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.

Appreciate the value of systematic replications in ensuring the reliability and validity of scientific findings.

Understand the distinct characteristics between literature reviews and meta-analyses.

Recognize the complementary roles of narrative reviews and meta-analyses in synthesizing research findings.

Grasp the importance of meta-analysis in interpreting and organizing past research.

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Definitions:

Just Cause

A legally sufficient reason for taking a particular action, especially for terminating an employee's contract without notice due to misconduct.

Sufficient Notice

Adequate information or warning given in advance to allow a person to prepare or respond to the information provided.

Fiduciary Obligations

Duties imposed on individuals who manage another person's assets or interests, requiring them to act in the best interest of the beneficiary with loyalty and care.

Employment Contract

An agreement between an employer and an employee that specifies the terms and conditions of employment, including duties, salary, and duration.