Three players live in a town and each can choose to contribute to fund a streetlamp. The value of having a streetlamp is $3 for each player; the value of not having a streetlamp is $0. The mayor asks each player to contribute a dollar, but each player may agree to do so or not. (Each player contributes $1 or $0.) If at least 2 players contribute, the lamp will be erected; otherwise the lamp is not erected and the mayor keeps the money collected. (a) Write down the normal form of this game. Your game should have 8 strategy profiles: the lamp is erected in four of them, and is not erected in the other four. (b) Identify dominant strategies and dominated strategies, if any, for each player. (c) Which of the eight strategy profiles constitute a Nash equilibrium

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Refer to the payoff matrix. suppose that speedy bike and power bike are the only two bicycle manufacturing firms serving the market. both can choose large or small advertising budgets. is there a nash equilibrium solution to this game?

Adamson company manufactures four lines of garden tools. as a result of an activity analysis, the accounting department has identified eight activity cost pools. each of the product lines is produced in large batches, with the whole plant devoted to one product at a time. classify each of the following activities or costs as either unit-level, batch-level, product-level, or facility-level. activities (a) machining parts. (b) product design. (c) plant maintenance. (d) machine setup. (e) assembling parts. (f) purchasing raw materials. (g) property taxes. (h) painting.