Suppose you and a classmate are playing a game where your classmate proposes a division of $1.00. Then, you either accept or reject the offer. If you accept, then you and the classmate get the proposed portions of the dollar. However, if you reject theoffer, then you and your classmate receive nothing.Suppose your classmate offers you $0.12
What is your optimal strategy?
Your optimal strategy is to _________ the proposed division.

A. Accept
B. Reject

Now suppose instead that you propose the division of the dollar. Your classmate will then accept or reject your division. If the classmate accepts, then you each receive the portion of the dollar as you have proposed. However, if your classmate rejects, then you both get nothing.
Your optimal strategy is to offer your classmate $ 0.99. (Enter a numeric response to two decimal places)

Answers

Answer 1

Answer:

Answer: The correct answers are "A. Accept" and "$ 0.01".

Explanation: Given that we talk about optimal strategy when maximizing the expected profit by the player:

In the first case It is convenient to accept the proposal and keep $ 0.12, instead of rejecting it and running out of nothing.

And in the second case it is convenient to give the classmate as little as possible so that he accepts and we have a greater profit.

Related Questions

They accept deposits from savers and make loans to people who need it. They provide various services, such as checking accounts and money market transactions, to facilitate capital exchange between savers and people who need it.
The future value of a dollar 1. increases with lower interest rates 2. increases with higher interest rates 3. increases with longer periods of time 4. decreases with longer periods of time
A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month supplies worth $3,000 were in hand. What adjusting entry would be made at the end of January?
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7.7 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $10.5 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.7 million to build, and the site requires $920,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):1. Issued stock for $623 cash (example). 2. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account. 3. Paid $5,000 in principal and $300 in interest expense on long-term debt. 4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account. 5. Incurred $25,249 in shipping expenses, all on credit. 6. Paid $118,241 cash on accounts owed to suppliers. 7. Incurred $10,069 in marketing expenses; paid cash. 8. Collected $38,200 in cash from customers paying on their Amazon credit card account. 9. Borrowed $16,231 in cash as long-term debt. 10. Used inventory costing $111,934 when sold to customers. 11. Paid $830 in income tax recorded as an expense in the prior year.Required:For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.

On October 1, a client pays a company the full $12,000 balance of a year-long contract. Using the accrual method, what's the unearned revenue as of December 31

Answers

Using the accrual method, the unearned revenue as of December 31 is $12,000.

What is Unearned revenue?

Unearned revenue can be defined as the amount a company received from their client for the service they are yet to rendered.

Since the company has received full balance for the services not yet provided. The unearned revenue as of December 31 will be $12,000 .

Reason been that the amount that the client paid the company is for a year-long contract, hence the $12,000 represent a prepayment amount for the service the company is yet to rendered to their client

Inconclusion using the accrual method, the unearned revenue as of December 31 is $12,000.

Learn more about unearned revenue here:brainly.com/question/5010039

The $12,000 payment is for a one-year contract, however, we will only record revenue from October 1 up to December 31 which are the months that already lapsed. The remaining nine months are still considered unearned revenue. Thus, the remaining unearned revenue is $9,000.

Unearned revenue is the amount received from a client for a service that has yet to be rendered. Since the company has received the full balance over the services not yet provided. As of December 31, the unearned revenue will be $12,000.

Because the client paid the company for a year-long contract, the $12,000 represents a prepayment for the service the company has yet to render to their client. Using the accrual method, the revenue that is not earned as of December 31 is $9000.

Learn more about revenue, here:

brainly.com/question/14952769

#SPJ6

Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession.Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers.

a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?

How large a tax cut would be needed to achieve the same increase in aggregate demand?

b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.

Increase spending

Increase taxes by

Answers

Answer:

a.i $6B

ii. The government should decrease taxes by $7.5B to achieve $30B increase in the level of output.

b. Possible combination:

Increase government spending by $30B.

Decrease taxes by $30B.

Explanation:

Fiscal policy is a way by which a government adjusts its spending levels and tax rates to predict and influence a nation's economy. It is synonymous to monetary policy through which a central bank influences a nation's money supply into the economy. Fiscal policy is divided into two types namely:expansionary or contractionary fiscal policies.

. Government spending multiplier is a direct increase in the level of output (GDP) as a result of one dollar change in government spending.

By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?

Government spending multiplier:

To calculate government spending multiplier (Kg) using MPC:

(1-0.8)*30B

=$6B

The government should increase its spending by $6B in order to archives $30B increase in the level of output.

Tax Multiplier:

Calculate tax multiplier (Kt) by using MPC:

The government should decrease taxes by $7.5B to achieve $30B increase in the level of output.

b) Possible combination:

Increase government spending by $30B.

Decrease taxes by $30B.

The middle of supply chain information systems (SCIS) framework is which of the following?a. Enterprise resource planning.
b. Enterprise planning and monitoring.
c. Enterprise integration and administration.
d. Financial operations and reporting.

Answers

Answer:

The correct answer is letter "B": Enterprise planning and monitoring.

Explanation:

Information Systems impact the Supply Chain at planning and monitoring stages. Information Systems allow managers to analyze information about the flow of the supply chain and allows them to spot where improvement is necessary. Besides, it allows tracking production to maximize it. Decisions can be made upon the feed Information Systems provide.

Apple's $3 billion acquisition of Beats Electronics and Beats Music in 2014 was an attractive strategy option for entering promising new industries in headphones and streaming music services because it

Answers

Answer:

Please see attachment

Explanation:

Please see attachment

Who are the most aggressive of the types we looked at?

Answers

What were you looking at????

Brandon Ramirez wants to set up a scholarship at his alma mater. He is willing to invest $320,000 in an account earning 11 percent. What will be the annual scholarship that can be given from this investment

Answers

Answer:

$35,200

Explanation:

Given that

Invested amount = $320,000

Rate of interest = 11%

So by considering the above information, the amount of annual scholarship that can be given from this investment is

= Invested amount × Rate of interest

= $110,000 × 11%

= $35,200

By multiplying the invested amount with the rate of interest we can find out the annual scholarship amount

Other Questions

Crispy Fried Chicken bought equipment on January 2, 2018, for $ 33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment's useful life, Crispy estimates that its residual value will be $ 6,000. The equipment operated for 675 hours the first year, 2,025 hours the second year, 2,700 hours the third year, and 1,350 hours the fourth year.Requirements1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.2. Which method tracks the wear and tear on the equipment most closely?

CoolBreeze Manufacturing produces a single product, a tabletop fan. They reported the following information from their operations last period:___________. Cost of Direct Materials used in production: $50,000 Cost of Direct Labor wages: $37,500 Variable Manufacturing Overhead: $25,000 Fixed Manufacturing Overhead: $125,000 Total units produced: 10,000Under absorption costing what was the per-unit cost of the units produced? a. None of the above b. $23.75 c. $12.50 d. $11.25 e. $8.75

When would a letter of comments be issued by the SEC?To request clarification of a registration statement.To convey your pertinent comments to the SEC.In response to a company's filing of Form 8-K.After receiving the company's Form 10-K.To indicate that a registration statement has been approved.A proxy statement must be filed with the SEC at least how many days before being distributed?Multiple Choicea. 30 days.b. 60 days.c. 10 days.d. 90 days.e. 7 days.

Beverly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred. April 2 Invested $34,830 cash and equipment valued at $15,540 in the business. 2 Hired a secretary-receptionist at a salary of $320 per week payable monthly. 3 Purchased supplies on account $830. (Debit an asset account.) 7 Paid office rent of $630 for the month. 11 Completed a tax assignment and billed client $1,360 for services rendered. (Use Service Revenue account.) 12 Received $3,940 advance on a management consulting engagement. 17 Received cash of $2,950 for services completed for Ferengi Co. 21 Paid insurance expense $150. 30 Paid secretary-receptionist $1,280 for the month. 30 A count of supplies indicated that $130 of supplies had been used. 30 Purchased a new computer for $7,000 with personal funds. (The computer will be used exclusively for business purposes.) Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)