Adam and Jon Are the Only Players Playing in a Local

question 76

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 B as its reward structure,then

• A) neither Jon nor Adam will practice.
• B) Jon will practice and Adam will not.
• C) Adam will practice and Jon will not.
• D) a positional externality exists.
• E) both Jon and Adam will practice.

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Definitions:

Unpredictable Ways

Patterns or outcomes that are not able to be foreseen or predicted due to a wide array of influencing factors.

Density Dependent

Refers to factors whose effects on the size or growth of a population vary with the population density, such as competition for resources.

Density Independent

Referring to effects on population growth that occur regardless of the population density, such as environmental stress or climate changes.

Disease

A condition that impairs normal functioning and is typically manifested by distinguishing signs and symptoms.