A and B are bargaining over a business opportunity that is worth $50,000. A has an outside option that will give her $10,000 if she does not reach an agreement with B, while B's outside option is $24,000. Bargaining proceeds as in the ultimatum game. First A proposes a division, then B accepts or rejects. If B accepts, the division is implemented. If B rejects, each player obtains their outside option. Assume that if a player is indifferent between a proposed division and his or her outside option, then the player accepts the division. Using backward induction, the prediction is that:

*Answer is D. Using backward induction we obtain that A will offer $26,000 for her and $24,000 for B and B will accept. Please show the steps using backward induction on how this answer was obtained. Thank you.

a) A proposes $50,000 for her and $0 for B. b) A proposes $10,000 for her and $40,000 for B. c) B rejects every proposal and takes his outside option.

d) None of the above.