Answer:sales must have amounted to:$704,000
Explanation:
Contribution ratio = Sales ratio - Variable cost ratio
= 100%- 75%
=25%
Sales to break even = Fixed expenses / Contribution margin ratio
Therefore,
Fixed expenses = Sales to break even x Contribution margin ratio
=$840,000 x 25%
=$210,000
Contribution margin can also be calculated as
Fixed expenses- Operating loss
=$210,000 -$34,000
=$176,000
Sales = Contribution margin/ Contribution ratio
= $176,000/25% =$704,000
In choosing between the range of alternative investments typically available to U.S. households, which of the following will play a role in influencing their selection of a particular investment type?
a. the expected rate of return, risk, and liquidity of each kind of investment
b. the interest rate and the expected rate of return
c. whether or not the majority of households are early stage investors
d. the form of dividends, angel investors, future expectations
Answer: B. the interest rate and the expected rate of return
Explanation:
What most firms and Industries look out for when going into a business is the interest rate and the expected return on investment. This is a guide for anyone carrying out a study on any business. If these are not considered it'll be assumed the firm is running a charity organization and would run at a loss sooner or later. What will influence the decision of any investment is the interest rate and the expected rate of return
Gaston owns equipment that cost $17,000 with accumulated depreciation of $6,800. Gaston asks $14,200 for the equipment but sells the equipment for $9,200. Which of the following would not be part of the journal entry to record the disposal of the equipment?
a. Debit Accumulated Depreciation $61,000.
b. Credit Equipment $90,500. Debit Loss on Disposal of Equipment $3,500.
c. Credit Gain on Disposal of Equipment $3,500.
d. Debit Cash $6,000.
Answer:
Credit Gain on Disposal of Equipment $1,000.
Explanation:
Based on the information given the entry that will NOT be part of the Journal entry to record the disposal of the equipment is Credit Gain on Disposal of Equipment $1,000 reason been that the company had a LOSS on Disposal of Equipment of the amount of $1,000($9,200+$6,800)-$17,000) which will be debited.
Dr Cash $9,200
Dr Accumulated Depreciation $6,800
Dr Loss on Disposal of Equipment $1,000
[($9,200+$6,800)-$17,000)
Cr Equipment $17,000
Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $ 600,000 and the fair market value of the office building is $360,000. In addition, Moss receives cash of $ 150,000. What is the recognized gain or loss and the basis of the office building
Answer:
Moss
The recognized loss and the basis of the office building are:
Recognized loss = $90,000
Basis of office building = $360,000
Explanation:
a) Data and Calculations:
Adjusted basis of warehouse = $600,000
Fair market value of the office building = $360,000
Cash received in exchange = $150,000
Total value of assets received in exchange of the warehouse = $510,000 ($360,000 + $150,000)
Recognized loss = $90,000 ($600,000 - $510,000).
b) From the above transactions, Moss will recognize a loss of $90,000. This is the difference between the adjusted basis of the warehouse and the fair market value of the office building and the cash that Moss received in exchange for the warehouse.
A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 7,100 units and was completed in 19,300 hours at a total labor cost of $172,800. What is the total labor cost variance?
Answer:
$2,400 unfavorable
Explanation:
Given that;
Time = 3 hours
Cost of labor = $8 per hour
Number of units = 7,100
Total actual labor cost = $172,800
Standard labor cost = 7,100 × 3 × $8 = $170,400
Total labor cost variance = Standard labor cost - Actual labor cost variance
Total labor cost variance = $170,400 - $172,800
Total labor cost variance = -$2,400
The negative sign here means that it is unfavorable, hence total labor cost variance is $2,400 unfavorable
X Corporation and its two divisions, Domestic and Foreign, appear below:
Sales revenues, Domestic $640,000
Variable expenses, Domestic $371,300
Traceable fixed expenses, Domestic $76,500
Sales revenues, Foreign $493,900
Variable expenses, Foreign $281,800
Traceable fixed expenses, Foreign $63,900
In addition, X's common fixed expenses totaled $173,300 and were allocated as follows: $90,000 to the Domestic division and $83,300 to the Foreign division.
What is the segment margin for the Domestic division?
a. $178,700
b. $371,300
c. $102,200
d. $192,200
Answer: $192,200
Explanation:
Based on the information that have been provided in the question, the segment margin for the domestic division will be calculated as:
Segment Margin = Segment Sales Revenue - Segment Variable Expenses - The Traceable Fixed Cost
= $640,000 - $371,300 - $76,500
= $192,200
How can we calculate IRR ?
Premium priced products like those offered by Louis Vuitton are not likely to be distributed _______.
Answer:
b. intensively
Explanation:
Louis Vuitton products mostly deal with the suitcases, shoes, watches, jewelleries, sunglasses, etc. Their products would be sold via departments i.e. rental, online websites, stores, etc
So as per the given situation, their premium and pricing products could not be allocated intensively as for many people it cant be afforded due to the high prices.
So the correct option is b.
Suppose that the market for painting services is perfectly competitive. Painting companies are identical; their long-run cost functions are given by: Market demand is: The long-run equilibrium price in this industry is $____. 173.5 162.5 194.5 155.5
Answer:
b. 162.5
Explanation:
Missing question "long-run cost functions are given by TC(Q)= 6Q^3-30Q^2+200Q"
TC(Q)= 6Q^3-30Q^2+200Q"
Marginal cost = 18Q^2 - 60Q + 200
Average Total Cost = 6Q^2 - 30Q + 200
ЭATC / ЭQ = 0
12Q - 30 = 0
Q = 2.5
ATC = 6Q^2 - 30Q + 200
ATC = 6*(2.5)^2 - 30(2.5) + 200
ATC = 37.5 - 75 + 200
ATC = 162.5
Thus, P = 162.5
A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers as it needs at the prevailing wage rate.
Answer:
Option C: Influence the market price of the good as it sells
Explanation:
Market Power is simply when a firm is able to raise price above the equilibrium level by not and without losing all of its customers. It depends on largely on the closeness of substiutes.
A firm has market power if it can Influence the market price of the good as it sells to its customer and can regulate it when necessary.
A project begins in January 2014; it is to be completed in October 2016. The contract price is $3,900 and the estimated total cost of the project is $3,000. Additional data for the project is provided below:
2014 2015 2016
Costs Incurred To Date $300 $2,400 $4,200
Estimated cost to Complete 2,700 1,600
Estimated Total Cost $3,000 $4,000 $4,200
Percentage of completion [PC]= (Costs incurred to date)/(Estimated total cost)
Required:
Compute the gross profit/loss recognized for each year under the PC method.
Answer:
The Gross profit/loss recognized for each year under the PC method:
2014 2015 2016
Gross profit(loss) $90 $240 ($630)
Explanation:
a) Data and Calculations:
Project's contract price = $3,900
Estimated total cost of the project = $3,000
2014 2015 2016
Costs Incurred To Date $300 $2,400 $4,200
Estimated cost to Complete 2,700 1,600 0
Estimated Total Cost $3,000 $4,000 $4,200
Percentage of completion [PC]= (Costs incurred to date)/(Estimated total cost)
2014 2015 2016
Percentage of completion: $300/$3,000 $2,400/$4,000
Percentage of completion: 10% 60% 30% (100 - 70)
Revenue Allocation: 2014 2015 2016 Total
2014 $390 (10% of $3,900) $390 $390
2015 $2,340 (60% of $3,900) $2,340 $2,340
2016 $1,170 (30% of $3,900) $1,170 $1,170
Total Revenue $3,900
Actual costs incurred ($300) ($2,100) ($1,800) ($4,200)
Gross profit $90 $240 ($630) ($300)
Which is NOT an example of an expense a) advertising b)insurance c)dividends d)depreciation
Answer:
c. dividends
Explanation:
not payable... so
Dividends are not an example of an expense.
What are dividends?
A dividend or dividends can be define as a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business which is called retained earnings.
The current year profit as well as the retained earnings of previous years are available for distribution and a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash which is usually a deposit into a bank account or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or by share repurchase. In some cases, the distribution may be of assets.
The dividend received by a shareholder is income of the shareholder and may be subject to income tax. The tax treatment of this income varies considerably between jurisdictions.
The corporation does not receive a tax deduction for the dividends it pays.
Learn more about dividends, here:
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Doug's Boat Shop, Inc. reports operating income of $260,000 and interest expense of $31,200. The average common stockholders' equity during the year was $50,000. The beginning assets balance is $115,000 and ending assets balance is $180,000. What is the leverage ratio
Answer:
2.95
Explanation:
Given that;
Beginning assets = $115,000
Ending assets = $180,000
Operating income = $260,000
Interest expense = $31,200
Average common stockholder equity = $50,000
Average total assets ;
= (Beginning assets + Ending assets) ÷ 2
= ($115,000 + $180,000) ÷ 2
= $147,500
Therefore,
Leverage ratio = Average total assets ÷ Average common stockholder equity
Leverage ratio = $147,500 ÷ $50,000
Leverage ratio = 2.95
In 2020, Cullumber Company reported net income of $585000. It declared and paid preferred stock dividends of $111000 and common stock dividends of $54000. During 2020, Cullumber had a weighted average of 300000 common shares outstanding. Compute Cullumber's 2020 earnings per share.
Answer: $1.58
Explanation:
Earnings per share is the amount of a company's earnings that is available to the common shareholders.
Formula is;
Earnings per share = (Net Income - Preferred dividends) / Weighted average common share outstanding
= (585,000 - 111,000) / 300,000
= $1.58
A real estate agent would like to predict the selling price of a single-family house by predicting the price (in thousands of dollars) based on the square footage (in 100 square feet). Predict the price of a 3000 square foot house (in thousands of dollars).
Answer: 134.7088 (thousands of dollars)
Explanation:
This can be solved with a regression equation based on the details in the question.
y being the price of the house.
x as the independent variable is given as 3.8785
c as the intercept is given as 18.3538
The equation s;
y = 3.8785x + 18.3538
x will be 30 because the variables are based on 100 square feet so, 3,000/100 = 30
y = 3.8785 *(30) + 18.3538
= $134.7088 (thousands of dollars)
= $134,708.80
A store uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is the optimal quantity the store should order of its product
Answer:
702.20
Explanation:
Optimal order quantity Q = D+ z σ
Where D is the average demand = 500 units
And σ is the standard deviation of demand = 300
Cu = Cost of stock-out (underestimation) = Selling price – unit cost = $25 -$10 = $15
Co = Cost of excess inventory (overestimation) = Unit cost – Salvage Value = $10 – $5 = $5
Therefore Service level = Cu / (Cu + Co)
= $15/ ($15 + $5)
= 0.75 or 75%
For service level 75% the Z value = 0.674
Therefore, Q = 500+0.674*300 = 702.20
A young college student was making a purchase at her local department store. The clerk suggested that she would get an additional 15% off the purchase price if she would sign up for a store credit card. Which of the following statements discusses how a personal finance expert might view this incentive?
a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.
b. An expert would advise you that the more credit cards you hold, the better your credit rating will be with the three major credit rating companies. Actuaries average the opinions of each credit card company to determine your score.
c. A personal finance expert would encourage her to take the incentive, particularly if interest rates on the card remain below 20%.
d. A personal finance expert would advise a college student to always take this incentive seriously because it is like trade credit for businesses
Answer: a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.
Explanation:
Even though financial advice is usually tailormade for the individual, a financial expert would most likely give this advice to a student because students are indeed vulnerable to such tactics.
They would be more prone to spend more in the store as a result of the credit card and this will lead to them being unable to pay off balances which will then lead to them paying much more than the original price they would have paid.
A-One Auto Sales, Inc., employs Best Collection Company as a collection agent. While repossessing goods from Carl, one of A-One's customers, Best causes an accident in which Carl is injured. Carl can recover from
Answer: c. A-One or Best.
Explanation:
Best Collection Company are the ones who cause the accident and so they can be held liable and have to compensate Carl for injuries and harm caused.
Best however, was acting as an agent on behalf of A-One Auto Sales so A-One can be held liable as well for the incident. Carl can therefore also be compensated by A-One as well.
Carl cannot be compensated by both for the same incident as this amounts to double compensation but can be compensated by either one of them.
Barbara is a single taxpayer who had a 2020 adjusted gross income of $25,000 and contributed $4,000 to her traditional IRA. Assuming she has a $2,000 income tax liability for the year, what is her maximum retirement contribution savings credit
Answer:
$200
Explanation:
The retirement contribution savings credit is designed to benefit low and middle income tax payers that contribute to retirement accounts.
The maximum credit ranges from $200 to $1,000 per taxpayer.
Since Barbara earned below $32,500, she applies for this tax credit.
Since her AGI is over $21,251, she can only deduct 10% of the first $2,000 contributed to her IRA account = $2,000 x 10% = $200
Abbott Landscaping purchased a tractor at a cost of $29,000 and sold it three years later for $15,700. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account.
Required:
Record the sale of equipment.
Answer:
Cash 15700 Dr
Accumulated depreciation 15000 Dr
Equipment - Tractor 29000 Cr
Gain on sale - Equipment 1700 Cr
Explanation:
The straight line method of depreciation charges a constant depreciation expense per year throughout the useful life of the asset. The formula for depreciation expense under this method is,
Depreciation expense = (Cost - Residual value) / Estimated useful life of the asset
Depreciation expense per year = (29000 - 4000) / 5 = $5000 per year
As the asset was sold after three years, the accumulated depreciation on the asset would be = 5000 * 3 = $15000
The NBV or carrying value of the asset will be = 29000 - 15000 = 14000
The gain on sale of equipment will be = 15700 - 14000 = $1700
Shelby Cabinets, Inc. produces custom cabinets. The following inventory balances appeared on its balance sheet.
12/31/2012
12/31/2011
Raw materials inventory
$ 8,000
$ 10,000
Work-in-process inventory
600,000
550,000
Finished goods inventory
350,000
410,000
Shelby Cabinets had $1,265,000 in sales for the year ended December 31, 2012. The company also had the following costs for the year:
Selling
$ 90,000
General and administrative
$240,000
Raw materials purchases
$100,000
Direct labor used in production
$125,000
Manufacturing overhead
$630,000
Of the total raw materials placed in production for the year, $12,000 was for indirect materials and must be deducted to find direct materials placed in production.
Using the above information, what was Shelby’s Cost of Goods Manufactured?
(Hint: You must first calculate Direct materials placed in production before calculating the Cost of Goods Manufactured.)
Group of answer choices
$795,000
$845,000
$855,000
$1,395,000
Answer:
$855,000 yippie!!!
Koovuq131 is a division of a large corporation. Data concerning the most recent period appears below:
Sales $18,120,000
Net operating income $1,177,800
Average operating assets $4,450,000
What is Koovuq131's margin (closest to)?
Answer:
0.065
Explanation:
Koovuq131 has sales of $18,120,000
The net operating income is $1,177,800
The average operating assets is $4,450,000
Therefore the margin can be calculated as follows
= Net operating income/sales
= 1,177,800/18,120,000
= 0.065
Hence the margin is closest to 0.065
Last month, the budgeted level of activity was 1,090 cars washed and the actual level of activity was 1,080 cars washed. The cost formula for the washing expenses is $3.30 per car washed plus $18,500 per month.
Fixed cost per month Cost per car washed
Cleaning supplies $0.70
Electricity $1,300 $0.08
Maintenance $0.15
wages and salaries $4,900 $0.20
Depreciation $8,400
Rent $1,900
Administrative expenses $1,600 $0.05
For example. electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average Of $6.60 per car washed.
The actual operating results for August appear below.
Lavage Rapide Income Statement For the Month Ended August 31
Actual car washed 8100
Revenue 54,900
Expenses:
Cleaning supplies 6,100
Electricity 1910
Maintenance 1,440
Wages and salaries 6860
Depreciation 8,400
Rent 2100
Administrative expenses 1,900
Total expense 28170
Net operating income 26,190
Required:
Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August.
Answer:
Flexible Budget Performance Report for August:
Flexible Actual Variances
Budget Budget Spending Activity Total
Activity levels 8,100 8,100
Revenue $53,460 $54,900 $1,440
Cleaning supplies $5,670 $6,100 (430)
Electricity $1,948 1,910 38
Maintenance $1,215 1,440 (225)
Wages and salaries $6,520 6,860 (340)
Administrative expenses $2,005 1,900 105
Depreciation $8,400 8,400 0
Rent $1,900 2,100 ($200)
Total expenses $27,658 $28,170 ($200) ($852) (1,052)
Net operating income $25,802 $26,190 $388
Explanation:
a) Data and Calculations:
Fixed cost Cost per
per month car washed
Cleaning supplies $0.70
Electricity $1,300 $0.08
Maintenance $0.15
Wages and salaries $4,900 $0.20
Depreciation $8,400
Rent $1,900
Administrative expenses $1,600 $0.05
Total costs $18,100 $1.18
Flexible costs:
Cleaning supplies $0.70 * 8,100 = $5,670
Electricity $1,300 $0.08 * 8,100 = $1,948
Maintenance $0.15 * 8,100 = $1,215
Wages and salaries $4,900 $0.20 * 8,100 = $6,520
Administrative expenses $1,600 $0.05 * 8,100 = $2,005
Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 3% in the United States and a nominal annual rate of 3.5% in the United Kingdom. In the spot market, 1 pound 5 $1.29. a. What is the 90-day forward rate
Answer:
$1.55
Explanation:
Interest rate parity = (1+Rh) / (1+Rf) = F1 / S0
Rh = rate on home currency here US is home 3% p.a = 3%/4 = 0.75%
Rf= rate on foreign currency here Germany 3.5% p.a = 3.5%/4 = 0.875
F1 = Forward rate , S0= Spot market rate
So, (1+0.0075) / (1+0.00875) = F1 / 1.56
1.0075/1.00875 = F1 / 1.56
0.998761 = F1 / 1.56
F1 = 0.998761 * 1.56
F1 = 1.55806716
F1 = $1.55
Thus, the 90-day forward rate is $1.55
Melinda signs a three year contract for employment as a legal studies lecturer. Does this type of contract fall within the scope of the statute of frauds
Answer: Yes, because it is a contract whose terms prevent possible performance within one year
Explanation:
The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.
Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.
Barbara's employer offers health coverage to its employees. However, Barbara feels it is unaffordable and wants to apply for a health insurance premium tax credit. In order for the coverage to be deemed unaffordable in 2020, Barbara's self-only premium must exceed ___% of her household income.
Answer:
9.83%
Explanation:
If the health insurance premium represents 9.83% of Barbara's income or less, it is considered affordable coverage. Only if it exceeds the 9.83% threshold, will Barbara be able to request a health insurance premium tax credit. Theoretically, if Barbara's health insurance was purchased in the Health Insurance Marketplace, the tax credit should be automatic and her premium should be lowered so that it can become affordable.
Randall invested 200,000 in activity A and 100,000 in activity B (both passive) in 1998 at the beginning of 2011 randall’s at-risk amount was 20,000 in A and 15,000 in B activity a had a loss of 25,000 and activity B had income of 30,000 what is the amount of income or loss recognized in 2011 from these activities?
a- 0
b- 5,000 income
c- 10,000 income
d- 25,000 losses
Answer:
c- 10,000 income
Explanation:
The computation of the mount of income or loss recognized in 2011 from these activities is shown below
As in the question it is mentioned that the activity A has $20,000 risk so $20,000 would be allowed. And, there is a passive income of $30,000
So the amount of the income recognzied would be
= $30,000 - $20,000
= $10,000 income
Therefore the correct option is c.
Bateman Corporation sold an office building that it used in its business for $800,750. Bateman bought the building 10 years ago for $599,625 and has claimed $201,125 of depreciation expense. What is the amount and character of Bateman's gain or loss
Answer:
Bateman Corporation
a. The amount of the gain = $402,250.
b. The character of the gain is long-term capital gain.
Explanation:
a) Data and Calculations:
Sale proceeds from office building = $800,750
Purchase cost of building = $599,625
Period of building before sale = 10 years
Depreciation claimed on building = $201,125
Net book value of building = $398,500 ($599,625 - $201,125)
Capital gain on sale of building = $402,250 ($800,750 - $398,500)
b) Bateman Corporation will record a capital gain of $402,250. This is the difference between the sale proceeds from the building and the net book value of the building after deducting the depreciation expenses claimed on the building. It is a long-term capital gain, which is taxed under the reduced rate.
Suppose the economy starts off producing Natural Real GDP. Next, aggregate supply rises, ceteris paribus. As a result, the price level falls in the short run. In the long run, when the economy has moved back to producing Natural Real GDP, the price level will be Question 4 options:
Answer:
The price level will be equal to what it was before there was a rise in the aggregate supply.
Explanation:
In economics, natural gross domestic product (Natural Real GDP) can be described as the maximum level of real GDP that can be sustained by an economy over the long term. The Natural Real GDP is also known as the potential output.
From the question, since the economy has moved back to producing Natural Real GDP which is the maximum real GDP sustainable, the price level will be equal to what it was before there was a rise in the aggregate supply.
Therefore, the price level will be equal to what it was before there was a rise in the aggregate supply.
Claire Corporation is planning to issue bonds with a face value of $240,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent.
Required:
a. Provide the journal entry to record the issuance of the bonds.
b. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year.
c. What bonds payable amount will Claire report on this year’s December 31 balance sheet?
Answer:
a) issue price
PV of face value = $240,000 / (1 + 3%)⁸ = $189,458
PV of coupon payments = $4,800 x 7.0197 (PV annuity factor, 3%, 8 periods) = $33,695
market price = $223,153
January 1, bonds issued at a discount
Dr Cash 223,153
Dr Discount on bonds payable 16,847
Cr Bonds payable 240,000
b) discount amortization = ($223,153 x 3%) - $4,800 = $1,895
discount amortization = ($225,048 x 3%) - $4,800 = $1,951
discount amortization = ($226,999 x 3%) - $4,800 = $2,010
discount amortization = ($229,009 x 3%) - $4,800 = $2,070
March 31, first coupon payment
Dr Interest expense 6,695
Cr Cash 4,800
Cr Discount on bonds payable 1,895
June 30, second coupon payment
Dr Interest expense 6,751
Cr Cash 4,800
Cr Discount on bonds payable 1,951
September 30, third coupon payment
Dr Interest expense 6,810
Cr Cash 4,800
Cr Discount on bonds payable 2,010
December 31, fourth coupon payment
Dr Interest expense 6,870
Cr Cash 4,800
Cr Discount on bonds payable 2,070
c) bonds' carrying value at December 31 = $231,169
Suppose Alex and Becky are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Alex chooses Right and Becky chooses Right, Alex will receive a payoff of 5 and Becky will receive a payoff of 5.
Becky
Left Right
Alex Left 6, 6 6, 3
Right 4, 3 5, 5
The only dominant strategy in this game is for___ to choose_____ .
The outcome reflecting the unique Nash equilibrium in this game is as follows:
Alex chooses______ and Becky chooses_______ .
Answer:
The only dominant strategy in this game is for__Alex_ to choose__Right___ .
The outcome reflecting the unique Nash equilibrium in this game is as follows:
Alex chooses__Right____ and Becky chooses__Left_____ .
Explanation:
The game theory of the Nash equilibrium achieves the optimal outcome of a game because Alex and Becky are not incentivized to deviate from their chosen strategies after considering the opponent's choice. Neither of these two players can increase their payoff by choosing an action different from their current strategic action. Thus, this action profile achieves a Nash equilibrium for the two players because there exists randomization in the game.