Alec and Ellie are the only detectives in the town of Broadchurch. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. They work independently and do not trade any jobs. Right now they each spend half their time completing paperwork and half their time conducting interviews. In one hour Alec can produce 4 interviews or 9 files of paperwork. In one hour, Ellie can produce 5 interviews or 1 files of paperwork. A trade is proposed between Alec and Ellie at the following price: 1 interview for 18 files of paperwork. If they trade at this price, they will fully specialize. At this price, what is the total number of interviews conducted in Broadchurch? Enter a number only.

Alec and Ellie are the only detectives in the town of Broadchurch. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. They work independently and do not trade any jobs. Right now they each spend half their time completing paperwork and half their time conducting interviews. In one hour Alec can produce 4 interviews or 9 files of paperwork. In one hour, Ellie can produce 5 interviews or 1 files of paperwork. A trade is proposed between Alec and Ellie at the following price: 1 interview for 18 files of paperwork. If they trade at this price, they will fully specialize. At this price, what is the total number of interviews conducted in Broadchurch? Enter a number only.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 8MC

See similar textbooks

Similar questions

Mary and Raj are the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the corn. If they work independently, they will each earn $100. If they decide to work together and both lower their output, they can each earn $150. If one person lowers output and the other does not, the person who lowers output will earn $0 and the other person will capture the entire market and will earn $200. Table represents the choices available to Mary and Raj. What is the best choice for Raj if he is sure that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoner’s dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output
Milly and Rob are the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the corn. If they work independently, they will each earn $100. If they decide to work together and both lower their output, they can each earn $150. If one person lowers output and the other does not, the person who lowers output will earn $0 and the other person will capture the entire market and will earn $200. The table represents the choices available to Milly and Rob. What is the dominant strategy for Milly ? Milly Keeps Producing Milly Lowers Output Rob Keeps Producing $100, $100 $200, $0 Rob Lowers Output $0, $200 $150, $150 Group of answer choices Milly should keep producing Milly should work independently from Rob Mily should lower output
You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation: • If both of you work hard, you both get an A, which gives each of you 25 units of happiness. • If only one of you works hard, you both get a B, which gives each of you 15 units of happiness. • If neither of you works hard, you both get a D, which gives each of you 5 units of happiness. • Working hard costs 15 units of happiness. Complete the following payoff matrix given the previous information. In each cell, your classmate's payoff is on the left and yours is on the right. Your Decision Work Shirk Classmate's Decision Work , , Shirk , , The likely outcome is that your classmate and you . If you get this classmate as your partner on a series of projects throughout the year, rather than only once, you are likely…
You and a classmate are assigned a project on which you will receive one combined grade. (You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation:• If both of you work hard, you both get an A, which gives each of you 40 units of happiness.• If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.• If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.• Working hard costs 25 units of happiness. a. Fill in the payoffs in the following decision box: REFER IMAGE b. What is the likely outcome? Explain your answer.c. If you get this classmate as your partner on a series of projects throughout the year, rather than only once, how might that change the outcome you predicted in part (b)?d. Another classmate cares more about good grades: She gets 50 units of happiness for a B and 80 units of happiness for an A. If this classmate were your partner (but your…
You and a classmate are assigned a project on which you will receive one combined grade. (You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation:• If both of you work hard, you both get an A, which gives each of you 40 units of happiness.• If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.• If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.• Working hard costs 25 units of happiness.a. Fill in the payoffs in the following decision box: b. What is the likely outcome? Explain your answer.c. If you get this classmate as your partner on a series of projects throughout the year, rather than only once, how might that change the outcome you predicted in part (b)?d. Another classmate cares more about good grades: She gets 50 units of happiness for a B and 80 units of happiness for an A. If this classmate were your partner (but your preferences…
As may have been blatantly obvious to you all along, since Miranda is the only inhabitant of the island, all she's really doing is catching fish for herself and eating them. However, even a single agent economy such as this one has all of the features any economy would, such as supply and demand curves, and equilibrium prices and quantities. Miranda plays many roles in this economy, as all of the profit earned by Miranda the producer is transmitted to Miranda the shareholder, which represents additional income that Miranda the consumer can spend on fish in addition to the labor income earned by Miranda the worker. (a) Suppose Miranda earns both labor income and profit, so that pq = wl + π(p). Rewrite her utility maximization problem and find the new demand for fish qd(p) and leisure r(p). (b) Find the equilibrium price p* and quantity q* of fish. (c) Find the equilibrium hours of labor l* and labor r*.
In the results, Sam's earnings are listed first and Jane's earnings are listed second. Jane A B Sam A ($100, $100) ($200, $0) B ($0, $200) ($150, $150) Jane and Sam are the only two growers who provide organically grown tomatoes to a local supermarket. They know that if they cooperated and produced less tomatoes, they could raise the price of tomatoes. If they work independently, they will earn $100 each. If they decide to work together and both lower their output, the will earn $150 each. If one person lowers output and the other does not, the person who lowers output will earn $0 and the other person will capture the entire market and will earn $200. The table above represents the choices available to Jane and Sam. What is the best choice for Sam if he is sure that Jane will cooperate? If Jane thinks Sam will cheat, what should she do and why? What is the prisoner's dilemma result? What is the preferred choice if they could ensure cooperation? A = Work…
Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. In two hours Alec can produce 5 interviews or 19 files of paperwork. In two hours, Ellie can produce 13 interviews or 22 files of paperwork. What is Ellie's Opportunity Cost of an interview in terms of files of paperwork? Enter a number only. Note: The question here is asking you for the opp. cost in terms of files so you can just enter a number. On the assessments if the question is phrased as "what is the opportunity cost?", you will have to enter the units as well, without which you will not get full credit.
One of the critical moments early on in the The Lord of the Rings trilogy is the meeting in Rivendell to decide who should take the One Ring to Mordor. Gimli the Dwarf won’t hear of an Elf doing it, whereas Legolas (who is an Elf) feels similarly about Gimli. Boromir (who is a Man) is opposed to either of them taking charge of the Ring. And then there is Frodo the Hobbit, who has the weakest desire to take the Ring but knows that someone must throw it into the fires of Mordor. In modeling this scenario as a game, assume there are four players: Boromir, Frodo, Gimli, and Legolas. (There were more, of course, including Aragorn and Elrond, but let’s keep it simple.) Each of them has a preference ordering, shown in the following table, as to who should take on the task of carrying the One Ring. Of the three non-Hobbits, each prefers to take on the task himself. Each would prefer that other than themselves and Frodo, no one should take the Ring. As for Frodo, he doesn’t really want to do it…
Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. Alec takes 25 hours to complete one interview or 4 hours to complete one file of paperwork. Ellie takes 15 hours to complete one interview or 20 hours to complete one file of paperwork. What is Alec's Opportunity Cost of an interview in terms of files of paperwork? Enter a number only. Note: The question here is asking you for the opp. cost in terms of files so you can just enter a number. On the assessments if the question is phrased as "what is the opportunity cost?", you will have to enter the units as well, without which you will not get full credit.
two timber companies, Alpha and Beta, have to decide whether to harvest timber from the North Hill or the South Hill and then sell the timbers in the same market. If both harvest from North Hill, each company can harvest 100 tons of timber. If both companies harvest from South Hill, each company can harvest 150 tons of timber. If one company harvests from North Hill and the other harvests from South Hill, the company at North Hill can harvest 150 tons of timber while the company at South Hill can harvest 250 tons of timber. The price of timber is dependent on the total supply of timber in the market. The price will be $180 per ton if the total supply is 200 tons, $150 per ton if the total supply is 300 tons and $100 per ton if the total supply is 400 tons. To both companies, the cost of harvesting in North Hill is $5,000 and the cost of harvesting in South Hill is $10,000. (a) If Alpha and Beta were to make a decision simultaneously, construct the payoff matrix in terms of profit for…
Andy, Brad, and Carly are playing a new online video game: Zombie Civil War. Each has an army of 100 zombies and must decide how to allocate them to battle each of the other two players’ armies. Three simultaneous battles are occurring: one between Andy and Brad, one between Andy and Carly, and one between Brad and Carly. Let Ab denote how many zombie soldiers Andy allocates to his battle with Brad, with the remaining 100 - Ab soldiers in Andy’s zombie army assigned to the battle with Carly. Bc denotes the number of zombie soldiers that Brad allocates to his battle with Carly, and 100 - Bc zombies go to his battle with Andy. Ca is the the number of zombie soldiers that Carly allocates to the battle with Andy, and 100 - Ca in her battle with Brad. To see how payoffs are determined, consider Andy. If Ab > 100 - Bc, so that Andy has more zombies than Brad in the Andy-Brad battle, then Andy wins the battle and receives w points where w > 2. If Ab = 100 - Bc, so that Andy and Brad…