Bart and Lisa are playing a game of Rock-Paper- Scissors. They hold their hands behind their backs and on the count of 3 show whether they are playing rock, paper, or scissors. When she makes her choice, Lisa doesn’t know what Bart is going to do. Before he decides what to do, Bart peeks behind Lisa’s back. If Lisa is going to play scissors, Bart can tell by looking that she will play scissors. If she is going to play rock or paper, Bart can’t tell which of these she will do. The payoffs in this game are the same as in ordinary Rock-Paper- Scissors. The winner gets a payoff of 1, the loser gets -1. Rock beats scissors, scissors beats paper, paper beats rock. If both players show the same thing, both get 0. Lisa knows that Bart peeks and she knows that he can tell if she is going to do scissors, but when she isn’t going to do scissors, he can’t tell whether she will do paper or rock. A) Show this game in extensive form.
B) How many strategies are possible for Lisa? How many strategies are possible for Bart?
C) Show this game in strategic form.

The owners of backstreets italian restaurant are considering starting a delivery service forpizza and their other italian dishes in the small college town where they are located. theycan purchase a used delivery van and have it painted with their name and logo for $21,500.they can hire part-time drivers who will work in the evenings from 5 p.m. to 10 p.m. for$8 per hour. the drivers are mostly college students who study at the restaurant when theyare not making deliveries. during the day, there are so few deliveries that the regular employeescan handle them. the owners estimate that the van will last 5 years (365 days per year)before it has to be replaced and that each delivery will cost about $1.35 in gas and othermaintenance costs (including tires, oil, scheduled service, they also estimate that onaverage each delivery order will cost $15 for direct labor and ingredients to prepare andpackage, and will generate $34 in revenue.a. how many delivery orders must backstreets make each month in order for the service to break even? b. the owners believe that if they have approximately the break-even number of deliveries during the week, they will at least double that number on fridays, saturdays, and sundays. if that’s the case, how much profit will they make, at a minimum, from their delivery service each month (4 weeks per month)?

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Taking commercial paper means the holder acts honestly