Adam and Jon Are the Only Players Playing in a Local

question 84

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.If the tournament adopts Plan A as its reward structure,then

• A) Jon and Adam will not practice.
• B) a positional externality will exist.
• C) Jon will not practice but Adam will.
• D) Adam will not practice but Jon will.
• E) Adam will only practice if Jon does,otherwise not.

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Definitions:

Gout

A form of inflammatory arthritis characterized by recurrent attacks of a red, tender, hot, and swollen joint, caused by elevated levels of uric acid in the blood.

Uric Acid

A waste product found in the blood, resulting from the breakdown of purines, which are substances found in many foods and cells of the body; high levels can lead to gout.

Uric Acid

A waste product formed from the breakdown of purines, excreted from the body through urine.

Gout

A type of arthritis caused by excess uric acid in the bloodstream, leading to painful swelling in the joints, especially the big toe.