By 2030, what will Elon Musk's, net worth will be?
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As the manager of cut-off salon, lavonne ensures the prices she charges exceed the cost of providing the services. She also switched the entire salon to carbon-neutral styling products. Which additional element of the triple bottom line should lavonne consider?.
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The social element is the additional element of the triple bottom line that lavonne should consider.
What is the Triple bottom line?Triple bottom line is a general business principle that ensure all companies must commit to focusing social and environmental concerns as they make profits.
Already, the manager has already used with two elements of triple bottom line, that is environmental and financial.
In conclusion, the social element is the additional element of the triple bottom line that lavonne should consider.
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You are a marketing research consultant hired to organize focus groups for an innovative german-style fast food restaurant. What kind of people would you elect to participate in focus groups? What screening criteria would you use? What questions would you ask?
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Explanation:
A focus group can be defined as a qualitative marketing research method where some people with common characteristics are brought together in a group who are guided by a trainer to promote discussions on a particular topic of interest and gather information to assist in decision making.
To organize focus groups for an innovative German-style fast food restaurant, you could separate 3 groups, the first being ages 18 to 30, the second 30-45 and the third group 45 and above.
The screening criteria could be, sources of income, profession, sex, taste for food, hobbies, etc.
The questions to ask could be related to the number of times a week people eat fast food, what is your favorite German food, how much are you willing to pay for the options offered in the restaurant, what elements do you consider most attractive in a restaurant ,etc.
Adjusting the List or Quoted Price This activity is important because the final price serves many functions for the firm. The final price must be high enough to cover the firm's costs and achieve the firm's objectives, but also low enough to be attractive to consumers. To set the final price, marketing managers begin with the list (quoted) price and then make price adjustments, Marketing mangers use both discounts and allowances, which are reductions from the list price given, as a reward for performing an activity to arrive at the final price. The four most common types of discounts are (1) quantity, (2) seasonal, (3) trade (functional), and (4) cash. The goal of this exercise is to demonstrate your understanding of the four types of discounts used by sellers. Roll over each example to read the description of the discount, then classify it as an example of a quantity, seasonal trade (functional), or cash discount. Rubbermaid Sleds Chiquita Pepsi Water Candy Dove Haggar Quantity Seasonal Trade (Functional) Cash
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The goal of this exercise is to demonstrate four types of discounts used by sellers are: 1. Rubbermaid Sleds - Quantity, 2. Chiquita Pepsi - Cash, 3. Water Candy - Trade (Functional), 4. Dove Haggar - Seasonal.
What is exercise?Exercise is any physical activity that enhances or maintains physical fitness and overall health and wellness. It can be as simple as a daily walk, or as complex as a full-body workout routine. There are many different types of exercise, including aerobic exercise, strength training, balance and coordination, and flexibility. Regular exercise helps to improve heart health, reduce stress, improve sleep, and increase energy levels. It can also help to boost self-confidence and improve mood. Exercise is an important part of a healthy lifestyle and can be an enjoyable way to spend time and stay fit.
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The goal of this exercise is to demonstrate four types of discounts used by sellers are: 1. Rubbermaid Sleds - Quantity, 2. Chiquita Pepsi - Cash, 3. Water Candy - Trade (Functional), 4. Dove Haggar - Seasonal.
What is exercise?Exercise is any physical activity that enhances or maintains physical fitness and overall health and wellness. It can be as simple as a daily walk, or as complex as a full-body workout routine. There are many different types of exercise, including aerobic exercise, strength training, balance and coordination, and flexibility. Regular exercise helps to improve heart health, reduce stress, improve sleep, and increase energy levels. It can also help to boost self-confidence and improve mood. Exercise is an important part of a healthy lifestyle and can be an enjoyable way to spend time and stay fit.
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How much potential money could be created from a new deposit of $2,000 and with a reserve ratio of 10%? How would it affect the ability of bank to create money if the reserve ratio decreased to 5%?
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Answer:
To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.
Given:
New deposits= $2000, Reserve ratio= 10 percent
To calculate the money multiplier= 1/10%= 1/0.1= 10
To calculate the money that was created we multiply the multiplier by the new deposits.
Therefore: 10*2000= $20,000
To calculate the amount created when the reserve ratio is 5%
To calculate the money multiplier= 1/5%= 1/0.05= 20
Therefore the money created will be 20*2000= $40,000
Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.
Explanation:
To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.
Given:
New deposits= $2000, Reserve ratio= 10 percent
To calculate the money multiplier= 1/10%= 1/0.1= 10
To calculate the money that was created we multiply the multiplier by the new deposits.
Therefore: 10*2000= $20,000
To calculate the amount created when the reserve ratio is 5%
To calculate the money multiplier= 1/5%= 1/0.05= 20
Therefore the money created will be 20*2000= $40,000
Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.
how can both the jit and eoq inventory theories effectively be reconciled?
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Optimize inventory using lean principles and accurate demand forecasting.
How to manage inventory effectively?The Just-In-Time (JIT) and Economic Order Quantity (EOQ) inventory theories represent two different approaches to managing inventory in a business. While they have distinct philosophies and techniques, it is possible to reconcile them to achieve effective inventory management. Here are some ways to do so:
Demand Forecasting: Both JIT and EOQ can benefit from accurate demand forecasting. By analyzing historical data and market trends, you can better estimate demand, which helps in determining the appropriate inventory levels and order quantities.Lean Principles: JIT emphasizes minimizing waste and maintaining a lean inventory system. EOQ focuses on optimizing order quantities to balance holding costs and ordering costs. By applying lean principles to EOQ, you can reduce waste associated with excessive inventory while still considering cost-effectiveness.Just-in-Time Replenishment: Although EOQ traditionally involves ordering larger quantities less frequently, you can modify the approach to align with JIT principles. Implementing JIT replenishment techniques, such as vendor-managed inventory or frequent small deliveries, allows you to reduce inventory levels and respond quickly to customer demand.Safety Stock Management: JIT typically aims to minimize safety stock, while EOQ considers holding costs associated with stockouts. To reconcile the two theories, you can adopt a balanced approach by determining the appropriate level of safety stock that accounts for both variability in demand and the cost of stockouts.Continuous Improvement: Both JIT and EOQ can benefit from a continuous improvement mindset. Regularly reviewing and analyzing inventory management processes, identifying areas for improvement, and implementing changes can lead to better integration of the two theories.Technology and Automation: Utilize inventory management systems, software, and automation tools to streamline processes, improve accuracy, and facilitate communication between suppliers and the production floor. Integrating technology can help optimize inventory levels and reduce costs, aligning with the principles of both JIT and EOQ.Remember that the specific reconciliation approach will depend on the unique characteristics and needs of your business. It may be helpful to evaluate the advantages and limitations of both theories and tailor the integration to suit your organization's goals and operational context.
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jane wishes to contribute property and cash to an s corporation. the tax rules that apply are similar to those of a:
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Jane wishes to contribute property and cash to an s corporation. the tax rules that apply are similar to those of S Corporation.
The reason is that Section 351 of the Internal Revenue Code provides S corporations with the same tax-free treatment as C corporations. S corporations are created similarly to C businesses.
A business structure known as a S corp or S corporation is one that is allowed by the tax code to pass its taxable income, credits, deductions, and losses straight to its shareholders. Due to this, it has some advantages over the more popular C corp. The S corp, an alternative to the limited liability company (LLC), is only applicable to small firms with 100 or less stockholders.
S corporations and LLCs are both referred to as "pass-through entities" since they don't pay corporate taxes; rather, they pay their owners, who are then in charge of paying the necessary taxes.
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A new company has started to become very competitive in your geographic areas. The first step they took was to slash prices. The second was stealing some of your best sales and manufacturing personnel. As a result, they have been able to go down the learning curve a lot faster, thus increasing their overall revenue. In a meeting with some of your people, the idea is brought up that you could increase the competition's costs by tying them up through litigation and state administrative action. Some local government officials owe you favors because your company has made campaign contributions in the past. Some other sources tell you the new company has over extended themselves, meaning their debt/equity ratio is very high. They probably couldn't survive a protracted legal battle or some legislation that's been designed to negatively impact their bottom line and not yours. Many more suggestions are brought up, but the first one is the only one that has a chance of success.
You:__________.
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A new company has started to become very competitive in your geographic areas. The first step they took was to slash prices. The second was stealing some of ...
Which of the following is typically not a feature of savings accounts?
Answers:
No checks
Earns interest
Withdrawal limits
A debit card
Answers
Answer: No checks is not a feature of savings account
Explanation: No checks is typically not a feature of savings account. On opening a savings account we do get a passbook and checkbook facility. Cheques are used for quick withdrawal of money or submission of funds
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If stock is issued in Pirate Recording, analysts predict that the company has potential for strong growth. The prospects for dividend payments to stockholders, at least in the beginning, are not good. Pirate Recording will need to retain its earnings in order to grow rapidly. The firm's stock would most likely be classified as a(n):
Answers
Answer:
growth stocks
Explanation:
Growth stocks are generally stocks that have a really large potential of increasing their value a lot in the near future, but they also carry a much larger risk than established stocks. Many high tech stocks were originally classified as growth stocks, e.g. googl was a growth stock that yielded very high returns, while groupon was a growth stock that plummeted.
Fractional reserve banking is a term used to describe a banking system whereby a. banks hold reserves equal to only a fraction of their deposit liabilities. b. banks hold reserves equal to a multiple of their deposit liabilities; that is, fractional in this case really means multiple. c. individual banks share a fraction of the total funds deposited in the whole banking system. d. banks are required to quote interest rates in fractions. e. banks are required to maintain a certain fraction of their deposits in the form of checkable deposits, a certain fraction of their deposits in the form of savings deposits, etc.
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Answer:
a. banks hold reserves equal to only a fraction of their deposit liabilities.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
In the banking system, fractional reserve banking describes a situation in which a depository financial institution such as a bank, hold an amount of reserves that is typically equal to only a fraction of its deposit liabilities.
Delectable, Inc.'s unadjusted trial balance includes Accounts Receivable of $10,000; Allowance for Doubtful Accounts of $50 credit balance; and Sales Revenue of $100,000 (all on credit). Management estimates that 2% of credit sales will be uncollectible. Delectable's financial statements will show ______. (Check all that apply.)
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Delectable's financial statements will show Allowance for Doubtful Accounts of $1,000 on balance sheet and Bad debts expense of $950 on Income statement
Here, we are to determine the records of bad debts expenses on Income statement and Allowance for doubtful accounts on Balance sheet.
Bad debts expense = Estimated bad debts - credit balance in allowance account
Bad debts expense = $1,000 - $50
Bad debts expense = $950
Journal Entry
General journal Debit Credit
Bad debts expense $950
Allowance for Doubtful accounts $950
(Bad debts expense recorded)
The allowance for doubtful account will be $1,000. ($950+$10) because the Allowance for Doubtful Accounts had $50 credit balance.
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What consumer protection agency is known by the acronym SEC?.
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Answer:
The Securities and Exchange Commission (SEC) is a U.S. government oversight agency responsible for regulating the securities markets and protecting investors.
Securities and Exchange Commission (SEC) is the protection agency known by the acronym SEC.
In the wake of the 1929 Wall Street Crash, the United States federal government established the independent U.S. Securities and Exchange Commission. The SEC's main goal is to uphold the law against market manipulation.
To encourage ethical business practices, the disclosure of critical market information, and the prevention of fraud, the Securities and Exchange Commission regulates securities exchanges, securities brokers especially dealers, and investment advisors, including mutual funds.
The truth is that the agency has all the authority necessary to act as a regulator at its disposal – authority that is much greater than that of the SEC, which must gather convincing evidence and persuade a judge of its version of events before acting, not after.
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which of the following would make a person well suited for entrepreneurship?
a. prefers to follow others on projects
b. likes making decisions
c. doesn't like people
d. likes to work regular hours
APEX
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Entrepreneurs likes making decisions because they are their own boss. Option (b) is correct.
What do you mean by Entrepreneurship?Entrepreneurship is the practice of operating a business with a fresh concept or in a novel approach, ultimately benefiting the client or the consumer. A novel product or service can represent a new idea in a business.
Self-motivation is among the most crucial characteristics of entrepreneurs. Pushing oneself is necessary if you want to succeed. Because you are your own boss as an entrepreneur, it can occasionally be challenging to begin rolling without external pressure.
Therefore, Option (b) is correct. Making decisions by their own would make a person well suited for entrepreneurship.
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on your own words, write short note on 3 Types of organizational market
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Answer: 3 types of organizational market are producers, resellers and institutions. Producers buy goods and services and transform them into a sellable product, which they sell to their customers for the purpose of making a profit. Examples of producers are farmers, manufacturers and construction companies. Reseller market consists of individuals or companies that purchase goods and services produced by others for resale to consumers. Insttitutions are a market consisting of schools, universities, hospitals, charities, clubs and similar organisations which buy goods and services for use in the production of their own goods and services.
Explanation:
How would you summarize this specific course section that you have just completed? imagine you are describing it to someone and want to encourage them to take it. business foundation
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You acquire information, abilities, and experience that will benefit you in both your work and general life.
What does it mean that you as a student should be aware of the course's relevance?
All students need to comprehend why a course's material important, regardless of whether they are merely studying it to fulfill a requirement or because they find it intriguing. This influences their comprehension of how this course links to other knowledge and abilities, as well as their motivation.
What factors do you consider when choosing the best course for you?
The first step in deciding which course to take is to identify your interests and hobbies, but you also need to consider what you have to offer. You must consider whether or not your abilities and expertise are relevant to the program you want to pursue before making your decision.
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the government accountability office reports that sweatshops. are no longer a problem in this country, often employ undocumented workers and Childern, following all OSHA guidelines, none of the above
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Answer:
often employ undocumented workers and children
Explanation:
what are the validity dates or anticipated validity dates (from form i-20) of your f-1 opt employment authorization document (ead)?
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The validity dates of an F-1 OPT Employment Authorization Document (EAD) will depend on the individual’s I-20 form.
Generally, the EAD is issued for a period of 12 months. However, some students may be eligible for an additional 24 months of OPT, depending on their field of study.
The validity dates are listed on the I-20 form under “Employment Authorization – OPT.” If a student has not yet received their EAD, they can anticipate the validity dates based on their I-20 form. It is important to note that the EAD must be activated prior to the end of the validity period in order for the student to continue working. Additionally, EADs may be renewed up to 60 days before the expiration date.
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Helpmeeeeeeeeeeeeeee
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Answer:
18. b : most economic decisions are made by buyer and sellers
19. b : federal income tax
Explanation:
1. A company is creating a new product and must determine how to effectively create the product as well as appeal to the market and target a wide range of customers.
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Answer and Explanation:
One good way to know how to effectively create a product and also target quite a wide range of consumers is to watch out for trends. Through the internet and social media, a producer can tell what product consumers would be ready to buy at a certain period due to the fact that it is what is trending at that time. The producer could go ahead to add new features to the product to make it stand out for potential customers.
.
The information regarding the new product should be explained in the explanation part.
The following information should be considered:
There is one good way for knowing how to effectively develop a product and also there is a wide range of consumers is to watch out for trends.By using the internet and social media, a producer can tell what product consumers would be ready to purchase at a specific period.Learn more: https://brainly.com/question/25300841?referrer=searchResults
An economy produces ceramic plates. If the economy achieves allocative efficiency ______.
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An economy produces ceramic plates. If the economy achieves allocative efficiency it produces the quantity on the PPF that is valued most highly.
If an economy is productive, then it must be allocatively efficient?An "ideal mix" of goods is produced by an allocatively efficient economy.In a perfect market, a firm is efficient whenever its price (P = MC) equals its marginal costs.
When businesses generate goods and services, is allocative efficiency achieved?Market equilibrium is reached when a specific quantity of a given good or service meets all of society's needs.Therefore, allocative efficiency occurs when the quantity of products and services produced is relatively near to what society desires.
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Write the 3 steps in legalizing a business (explain it briefly)
STEP 1:
STEP 2:
STEP 3:
Answers
Answer:
The 3 types of business entities that are most common are the sole proprietorship, limited liability company (LLC), and corporation. Each has their own distinct advantages and disadvantages, depending on what you and your business need.
Explanation:
Some of these crucial legal formalities that entrepreneurs in India should be aware of before setting up a business venture are:
1) Deciding on a business name. ...
2) Creation of a founder's agreement. ...
3) Acquire all the legal licenses and registrations. ...
4) Be acquainted with the relevant tax regime and accounting norms.
Keri is making doll clothes for a holiday craft show. the wholesale cost of the materials for one outfit is $9.38. if she sells an outfit for $15, what is the percent of markup? round to the nearest percent.
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The percent of markup is calculated by dividing the selling price by the cost of the materials:
Markup % = (Selling Price / Cost of Materials) x 100
Rounded to the nearest percent, the markup is 60%.
The percent of markup for Keri's doll clothes can be calculated by using the formula:
Markup Percent = [(Selling Price - Wholesale Cost) / Wholesale Cost] × 100
First, we need to find the difference between the selling price and the wholesale cost:
$15 - $9.38 = $5.62
Next, we need to divide this difference by the wholesale cost:
$5.62 / $9.38 = 0.599
Finally, we need to multiply this number by 100 to get the percent of markup:
0.599 × 100 = 59.9%
Rounding to the nearest percent, the markup percent for Keri's doll clothes is 60%.
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In CengageNOWv2, all of the accounting problems are multiple choice or utilize drop-down menus. TRUE OR FALSE
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The statement all of the accounting problems are multiple choice or utilize drop-down menus is true because participants will learn how to construct and evaluate financial statements such as the balance sheet, income statement, and cash flow statement.
As well as how to calculate and interpret crucial ratios. Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Duality Aspect Concept, Realisation Concept, Accrual Concept, and Matching Concept are some of the terms used in accounting.
Revenues, costs, assets, and liabilities are the four basic accounting concepts utilized in company. Documents such as balance sheets, income statements, and cash flow statements track and record these elements. When respondents choose to participate in the study on their own, they make a selection error.
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Which of the following should NOT appear on a resume?
age
work experience
education
references
Answers
Answer:
Age
Explanation:
Age should not appear on a resume.
Extra : -
These also should not appear on a resume
Too much informationA solid wall of text.Spelling mistakes and grammatical errors.Inaccuracies about your qualifications or experience.Unnecessary personal information.Your age.Negative comments about a former employer.Details about your hobbies and interests.On December 1, 2018, Goetz Corporation leased office space for 10 years at a monthly rental of $80,000. On that date Goetz paid the landlord the following amounts:
Rent deposit $ 80,000
First month's rent 80,000
Last month's rent 80,000
Installation of new walls and offices 640,000
Tota: $880,000
The entire amount of $880,000 was charged to rent expense in 2018. What amount should Goetz have charged to expense for the year ended December 31, 2018?
a. $80,000
b. $85,333
c. $165,333
d. $640,000
Answers
,Goetz have charged $85,333 to expense for the year ended December 31, 2018.
How do you calculate the rent?A property's rent normally ranges between 0.8% and 1.1% of its value. If your house is worth $300,000, the rent may range from $2,400 to $3,300 per month. The price range of your house will, of course, have an impact on this strategy.The duration of the lease less the discounted months you receive from the landlord is multiplied by gross rent to arrive at net effective rent. The amount is then divided by the term of the lease. Finally, you arrive at your net effective rent by deducting the calculated amount from the gross rent.By dividing gross rent by the number of months left on your lease, minus the free months your landlord has discounted, you can arrive at net effective rent. You multiply this sum by the length of the lease.Learn more about Rental calculation refer to :
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Lucky dog technology, a consumer electronics manufacturer in good credit standing with marathon, wishes to place a merchandise order with marathon sales for $25,000 on credit. sales forwards the new order to accounting for pre-approval and requests a a $25,000 credit line increase. previous sales records show that lucky dog has a current balance due of $17,800 carried over from the past two months. accounting approves a total credit line of $33,500. sales is confused with accounting's response. as they expected lucky dog to receive a total credit line approval of $42,800.
required:
provide a detailed and plausible explanation for the difference between the $42,800 credit line approval that sales expected and the $33,500 credit line which accounting actually approved for luck dog.
Answers
What therefore makes this portion so difficult? Although the arithmetic is simple, it is tested it ways you might not be accustomed to.
A manufacturer? What else do you intend by that?A manufacturer is a person or business that turns raw materials into completed products using a variety of tools, machinery, and procedures, and then sells those products to customers, wholesalers, Retailers, marketers, or other producers who use them to create more intricate items.
What does a manufacturer do?A manufacturing job entails the production of new items using either raw materials or the physical, chemical, or mechanical assembly of various components. Large-scale manufacturing is possible for products like phones, vehicles,
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what are the three purposes of a job interview?
Answers
Answer:
to learn more about you, why you want the job for, and base on what you need to know or what you already know
Chantal and Jimmy live next to each other in an assisted living community. Chantal and Jimmy have a bad relationship due to Jimmy dumping his food waste in his backyard. Jimmy claims that this is good fertilizer for his plants and will help combat climate change. Chantal has difficulty sleeping and enjoying her backyard due to the smell. One day Chantal confronted
Jimmy about the smell and Jimmy began yelling profanities at Chantal and told her that she is a
"hateful moron who wants to hurt the planet." Early one morning, Chantal walked into Jimmy's backyard with a shotgun, can of gasoline, and a lighter. She proceeded to dump gasoline on the pile of food waste and set it on fire. Smelling the smoke, Jimmy rushed out of his bed and slipped and fell on the floor. Due to the fall, he cut his forehead open and was badly bleeding. After gaining his composure, Jimmy went outside and when he saw Chantal, she pointed the shotgun in Jimmy's direction. Jimmy suffered from PTSD due to an attack he suffered from a motorcycle gang about a decade ago and passed out in the backyard. Once Jimmy passed out, Chantal quickly ran away, but tripped over Jimmy's body
and badly bruised his upper torso. As a result of Chantal's actions Jimmy had to pay $20,000 in landscaping costs, $50,000 in
medical bills, and $10,000 for psychological treatment.
Please discuss any torts as presented in the fact pattern above
Answers
The fact pattern presented involves several potential torts. Tort law is a branch of civil law that deals with civil wrongs, including intentional acts that cause harm to others.
Based on the provided information, the following torts can be identified:
Nuisance: Chantal may have a claim for nuisance against Jimmy due to the smell caused by the dumping of food waste in his backyard. Nuisance occurs when one party's use or enjoyment of their property is interfered with by another party's actions. Chantal's difficulty sleeping and enjoying her backyard due to the smell could be considered a valid claim for nuisance.
Assault: When Chantal pointed the shotgun at Jimmy, it can be considered an act of assault. The purposeful act of raising suspicion of harmful or objectionable contact is referred to as assault. Even though Chantal did not physically harm Jimmy, pointing the shotgun in his direction created a reasonable fear of imminent harm.
Battery: When Chantal tripped over Jimmy's body and caused him to suffer injuries to his upper torso, it can be considered an act of battery. Battery refers to the intentional and harmful or offensive physical contact with another person without their consent. Chantal's actions of tripping and causing physical harm to Jimmy could be seen as a battery.
Negligence: Both Chantal and Jimmy's actions may involve elements of negligence. Negligence refers to the failure to exercise reasonable care, resulting in harm to another person. Chantal's act of setting the food waste on fire in close proximity to Jimmy's property and causing damage could be considered negligent. Additionally, Jimmy's dumping of food waste, which caused the smell and interfered with Chantal's enjoyment of her property, may also be seen as negligent behavior.
It is important to note that the determination of liability and damages in tort cases depends on various factors, including applicable laws, jurisdiction, and the specific circumstances of each case. The discussion provided above is a general analysis based on the information provided and should not be considered legal advice. Legal professionals should be consulted for a comprehensive evaluation of the situation.
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Julio offers a division of the dollar which Thomas can accept or reject. If he accepts, the game ends and the dollar is split as Julio suggested. If he rejects, we wait until Tuesday when Thomas makes an offer on how to divide the dollar. If Julio accepts this offer, the game ends and the dollar is split as Thomas suggested. If he rejects, we wait until Wednesday when Julio makes an offer on how to divide the dollar. If Thomas accepts this offer, the game ends and the dollar is split as Julio suggested. If he rejects, the dollar is destroyed - no player gets anything. Suppose that if a player is indifferent between accepting and rejecting an offer - he accepts.
Note: Players do not discount the future. However, each time a player rejects an offer, they must pay 20 cent out of their own pocket.
Solve for the Subgame Perfect Nash Equilibrium by backward induction showing the offer made each day. What division of the dollar does Julio offer on Monday?
Answers
The division of the dollar that Julio gives on Monday is $0.40 (40 cents) for Thomas and $0.60 (60 cents) for himself.
To solve for the Subgame Perfect Nash Equilibrium through backward induction, let's analyze the sport step by step:
Wednesday:
If the sport reaches Wednesday, Julio knows that rejecting Thomas' offer will result in the dollar being destroyed. Therefore, Julio will offer Thomas a division that Thomas can not refuse. Julio will offer Thomas $0.80 (80 cents) and maintain $0.20 (20 cents) for himself.
Thomas will take delivery of this to provide considering the fact that it's far higher than receiving nothing.
Tuesday:
Knowing Julio's approach on Wednesday, Thomas is aware that rejecting Julio's offer will result in receiving the handiest $0.80 (80 cents) on Wednesday. Therefore, Thomas will offer Julio a department that Julio can't refuse. Thomas will provide Julio with $0.60 (60 cents) and keep $0.40 (40 cents) for himself.
Julio, being detached between accepting and rejecting, will be given this provide considering the fact that it's far better than receiving $0.80 (80 cents) on Wednesday.
Monday:
Knowing Thomas' approach on Tuesday, Julio is aware that rejecting Thomas' offer will result in receiving the best $0.60 (60 cents) on Tuesday. Therefore, Julio will provide Thomas with a division that Thomas can't refuse. Julio will provide Thomas $0.40 (40 cents) and preserve $0.60 (60 cents) for himself.
Thomas, being detached between accepting and rejecting, will take delivery of this offer on the grounds that its miles higher than receiving $0.60 (60 cents) on Tuesday.
Therefore, the department of the dollar that Julio offers on Monday is $0.40 (40 cents) for Thomas and $0.60 (60 cents) for himself.
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why is 10 cents earned far more valuable than a dollar found. Critical thinking.