Adam and Jon Are the Only Players Playing in a Local

question 75

Multiple Choice

Adam and Jon are the only players playing in a local golf tournament.They can either practice for 5 hours or not practice at all.Practice has both direct monetary costs and opportunity costs.Their scores for an 18-hole round of golf with and without practice are shown in the table.Total prize money is $12,000.Two possible reward structures exist.In Plan A,the low score wins $10,000,second place wins $2000,and a tie results in $6000 each.Plan B requires a player to score 71,or less,for first place,72 to 80 is considered second place.The $10,000 will be split between those with a 71 or lower score,with a guaranteed minimum of $2000.The $2000 for second will be split between those with a score between 72 and 80.
-Refer to the information above.Plan A rewards

• A) absolute performance.
• B) excellent performance.
• C) relative performance.
• D) average performance.
• E) poor performance.

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Definitions:

Leisure

The time individuals spend away from work or essential activities, dedicated to relaxation, recreation, or hobbies.

Wage Rate

The amount of money paid to a worker per unit of time (hour, day, etc.), which can vary based on skill, occupation, and market conditions.

Lump Sum Payment

A single payment made at a particular time, as opposed to multiple payments made over time.

Budget Line

An illustrative chart showing every possible pair of two items that a specific budget and set prices allow to be acquired.