This problem is inspired by an incident in the movie, A Beautiful Mind, about John Nash. Two boys meet two girls in a bar. Both boys like both girls, but both prefer Girl A to Girl B. Both boys assign a cardinal utility of 5 to talking with Girl A and 4 to talking with Girl B, and a utility of 0 to talking with neither. The boys’ attitudes towards gambles about outcomes are given by expected utilities. For example the expected utility of talking to Girl A with probability p and to nobody with probability 1-p is 5p+0(1 p) = 5p. The expected utility of talking to Girl B with probability p and nobody with probability 1-p is 4p+0(1 p) = 4p. The girls like both boys equally. If both boys approach the same girl, she will choose one of them at random. The girl who wasn’t approached is offended and won’t talk to the rejected boy. If one boy approaches A and the other approaches B, then each of the girls will talk to the boy who approached her.
A) The decision about who to approach can be modeled as a game between the two boys, where each boy has two possible strategies Approach A and Ap- proach B. Show this game in strategic form.
B) Find a symmetric Nash equilibrium for this game.
C) In symmetric Nash equilibrium, what is the probability that at least one boy approaches Girl A? Girl B? What is the probability that both girls are approached by one of the boys?

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x,y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.

Below are the steps in the measurement process of external transactions. arrange them from first (1) to last (6). event step post transactions to the general ledger. assess whether the transaction results in a debit or credit to account balances. use source documents to identify accounts affected by an external transaction. analyze the impact of the transaction on the accounting equation. prepare a trial balance. record the transaction in a journal using debits and credits.