Which of the following gambles is “unfair”? a.A game that promises to pay you $1 if a coin comes up head and cost you $1 if a coin comes up tail, with no entry fee. b.A game that promises to pay you $10 if a coin comes up head and cost you $1 if a coin comes up tail, with no entry fee. c.A game that promises to pay you $10 if a coin comes up head and cost you $1 if a coin comes up tail, with an entry fee of $4.50 for the right to play. d.All of the above.

Game that involves entry fee is unfair because reward is also less.

Answered: Which of the following gambles is…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5CQQ

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Which of the following gambles is “unfair”?

	a.	A game that promises to pay you $1 if a coin comes up head and cost you $1 if a coin comes up tail, with no entry fee.
	b.	A game that promises to pay you $10 if a coin comes up head and cost you $1 if a coin comes up tail, with no entry fee.
	c.	A game that promises to pay you $10 if a coin comes up head and cost you $1 if a coin comes up tail, with an entry fee of $4.50 for the right to play.
	d.	All of the above.

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