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Becky and Sarah are sisters 1who share a room. Their room can easily get messy, and their parents am always telling them to tidy it. Here are the costs and benefits to both Becky and Sarah, of taking the time to clean their room: If both Becky and Sarah clean, they each spends two hours and get a clean room. If Becky decides not to clean and Sarah does all the cleaning, then Sarah spends 10 hours cleaning (Becky spends 0) but Sarah is exhausted. The same would occur for Becky if Sarah decided not to cleanâ€”Becky spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room.

- What is the best outcome for Becky and Sarah? What is the worst outcome? (It would help you to construct a prisoner’s dilemma table.)
- Unfortunately, we know that the optimal outcome will most liker not happen, and that the sisters probably will choose the worst one instead. Explain what it is about Becky’s and Sarah’s reasoning that will lead them both to choose the worst outcome.

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Principles of Economics 2e

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- Kim and Abby are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Kim and Abby, of taking time to clean their room: If both Kim and Abby clean, they each spend two hours and get a clean room. If Kim decides not to clean and Abby does all the cleaning, then Abby spends 10 hours cleaning (Kim spends 0) but Abby is exhausted. The same would occur for Kim if Abby decided not to clean - Kim spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room. a. What is the best outcome for Kim and Abby? What is the worst outcome? (It may help you to construct a prisoner's dilemma table) b. Unfortunately, we know that the optimal outcome will most likely not happen, and that the worst outcome will probably be chosen instead. Explain what it is about Kim's and Abby's reasoning that will lead them both to choose the worst outcome.
*arrow_forward*Hacmillan Leaming Christine and Paul are deciding how to split their time between writing music and lyrics for their new album. Their PPF's for 72 h of work are shown. Christine and Paul have to write music for 8 songs and lyrics for 12 songs (4 songs already have music). When they are done, they can go to a private island and relax from all their hard work. It is possible that they will use more than 72 h. Once they start writing lyrics and music, assuming their hired help packs for them and their plane is waiting outside their door, in how many hours can they board the plane to their relaxing island getaway? Christine will write music for Paul will write music for Christine will write lyrics for Paul will write lyrics for h songs. songs. songs. songs. Music written (in # of songs) 1 0 Paul's PPF 1 Christine's PPF 2 Lyrics written (in # of songs))*arrow_forward*4.4 how am i supposed to show this, are there going to be two lines crossing over eachother?*arrow_forward* - Eleanor and her little brother Josh are responsible for two chores on their family's farm, gathering eggs and collecting milk. Eleanor can gather 18 dozen eggs or collect 6 gallons of milk per week. Josh can gather 2 dozen eggs or collect 2 gallons of milk per week. a. The family wants 2 gallons of milk per week and as many eggs as the siblings can gather. Currently, they collect one gallon of milk each and as many eggs as they can. How many dozens of eggs does the family have per week? (Click to select) ✓ dozen eggs. b. If the siblings were to specialized, which should collect the milk? (Click to select) c. If the siblings were to specialize, how many dozens of eggs would the family have per week? (Click to select) dozen eggs.
*arrow_forward*Eleanor and her little brother Josh are responsible for two chores on their family's farm, gathering eggs and collecting milk. Eleanor can gather 18 dozen eggs or collect 6 gallons of milk per week. Josh can gather 2 dozen eggs or collect 2 gallons of milk per week. a. The family wants 2 gallons of milk per week and as many eggs as the siblings can gather. Currently, they collect one gallon of milk each and as many eggs as they can. How many dozens of eggs does the family have per week? (Click to select) dozen eggs. b. If the siblings were to specialized, which should collect the milk? Eleanor c. If the siblings were to specialize, how many dozens of eggs would the family have per week? (Click to select) dozen eggs. www v*arrow_forward*Juanita is a talented artist who sells hand-crafted goods on her website. Juanita currently crafts and sells both tea towels and pillows. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Tea towels) (Pillows) (Tea towels) (Pillows) A 0 4 0 B 2 3 10 4 2 16 6 1 19 0 20 PILLOWS C D E 30 25 On the following graph, use the blue points (circle symbol) to plot Juanita's initial production possibilities frontier (PPF). 20 2 10 5 0 D 8 6 4 1 NO 2 8 + 2 3 4 TEA TOWELS 5 8 7 Initial PPF 4 New PPF Suppose Juanita is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is per day. Now, suppose Juanita is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day per day. is*arrow_forward* - 5. Gina and Bob are co-owners of a surf shop. Both Gina and Bob prefer to skip work and go surfing, but if they both surf, the shop is closed. Each co-owner must choose between working and surfing. If they both work, they earn $600 each. If both surf, they earn $200 each (the value they place on surfing). If only one of the co-owners surfs while the other works, the worker gets $800 and the surfer gets $1000. a. Suppose that Gina and Bob make their decision simultaneously. Depict their interaction on a payoff table showing all outcomes (payouts) payouts. Identify the equilibrium outcome(s). b. Now suppose that Gina is an early riser, whereas Bob sleeps in. Therefore, Gina decides first whether to work or surf. By the time Bob makes his decision, Gina has already committed to one of the two options. Depict this interaction in a sequential game tree. Show all the payouts and identify the equilibrium outcome(s). c. Would it be in Bob’s best interest to get up sooner, so that he can…
*arrow_forward*Say that you are a manager with the Transportation Security Administration (TSA). The table below shows fictional estimates of the marginal benefit and marginal cost of additional TSA security lines at Mahlon Sweet Field, the airport in Eugene, Oregon. Number of Marginal In this space, draw the graph of the marginal data from the left columns. Answer these questions below using the data table and graph. Benefit 3. Security Lines 1 2 3 4 5 6 $10,000 9,000 7,000 5,000 4,000 3,000 Marginal Cost $2,000 3,000 4,000 5,000 8,000 12,000 The surplus of the marginal benefit over cost for the second security line is $ and $ for the third security line. If your goal is to maximize total surplus, you WILL / WILL NOT (circle one) operate a third security line. The optimal number of TSA security lines is because this is where the marginal equals the marginal which maximizes total*arrow_forward*You have an 8:30 class this morning but you are feeling extremely tired. How do you decide whether toget some extra sleep or go to class?*arrow_forward* - 1. Road construction is going on Riccarton Road. 100 Uber drivers want to drop their passengers at the airport. Each driver is deciding whether to take Riccarton Road or take Blenheim Road. The cost of travelling through Riccarton Road is $10 (additional fuel required due to slow traffic), while the Blenheim Road route has a low fuel cost (theoretically let's assume $0) but takes more time to reach the airport. In deciding on a route, each driver cares only about income, denoted i, and his travel time, denoted t (where we have made the dollar value of one unit of travel time equal to 1). Driver's payoff is assumed to be his/ her profit (income - cost of travelling, including travel time). Assume that each driver has same income of $500. If m drivers are on Riccarton Road, the travel time for a driver on Riccarton Road is assumed to be m (in dollars). In contrast, if m drivers take Blenheim Road, the travel time for those on the Blenheim Road is 2m (again, in dollars). Drivers make…
*arrow_forward*I want you to please to solve this. It's super easy, and the deadline is in 1 hr. A student has a monthly budget of $120 to spend on eitherburritos, which cost $6 each, or sodas, which cost $4 each.1. What is the largest number of burritos that the studentcould afford to purchase in one month?2. What is the largest number of sodas the student couldafford to purchase in one month?3. Draw the student's budget constraint. Put burritos on thex-axis and sodas on the y-axis.Graded Assignment due Monday4. Which combinations of burritos and sodas are unaffordable--those tothe left of the line in the graph or those above the line in the graph? Why?5. Which combinations would leave some budget unspent - those to theleft of the line in the above graph or those to the right of the line in theabove graph?6. What is the equation for the student's budget constraint? In yourequation, use Q1 as the variable to represent the quantity of burritos andQ2 to represent the quantity of sodas.7. What is…*arrow_forward*Eric and Ginny are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Eric 20 4 Ginny 28 On the following graph, use the blue line (circle symbol) to plot Eric's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ginny's PPF. 200 180 Eric's PPF 160 140 120 Ginny's PPF 100 80 60 40 BARLEY (Bushels)*arrow_forward*

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