We consider a game between two players, Alice and Bob. Alice plays first and chooses a number x (between -infinity and +infinity). After Alice has played, Bob observes Alice's choice and then chooses a number y (between -infinity and +infinity).

Alice's payoff is given by the following function:
30 x + 88 x y - 17 x 2 . (the last entry is "x squared".)

Bob's payoff is given by the following function:
38 y + 30 x y - 42 y 2 . (the last entry is "y squared".)

Calculate Alice's strategy in the subgame perfect equilibrium of this game.

Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt carries it from the start station to the finish station. After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor. Lorenzo's accountant wants to estimate costs in December, when 10,900 cars are expected to be washed. She tried two different methods to estimate December costs, account analysis and high-low, with number of cars washed as the independent variable for both methods. To estimate the cost function parameters using account analysis, she analyzed actual costs in June, when 9,200 cars were washed. Her analysis revealed the following total costs and total variable costs for each cost item: Cost Item Soap, cloths, and supplies Water Car wash labor Power for conveyor Supervisor and cashier Cost Item Soap, cloths, and supplies Water Car wash labor Power for conveyor Supervisor and cashier Total Cost To estimate the cost function parameters using high-low, she used the following total cost and activity data from July and August: Total Cars washed $5,520 $5,520 $28,230 $9,890 $3,700 Variable Cost $5,520 $5,520 $25,760 $7,360 $0 July $2,520 $5,040 $24,640 $9,320 $4,150 $45,670 8,400 August $3,600 $7,200 $34,000 $12,200 $4,150 $61,150 12,000 REQUIRED [ROUND PER-UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR.] Part A (6 tries; 5 points) 1. Using account analysis, what is the accountant's estimate of total fixed costs for December? 2. Using account analysis, what is the accountant's estimate of total variable costs for December? Submit Answer Tries 0/6 Part B (6 tries; 5 points) 1. Using the high-low method, what is the accountant's estimate of total fixed costs for December? 2. Using the high-low method, what is the accountant's estimate of variable costs per unit for December? Submit Answer Tries 0/6