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Suppose There Are Two Types of Fruit Pickers

question 9

Essay

Suppose there are two types of fruit pickers. Fast pickers bring in more than 10 units of fruit per day, while the slow pickers bring in fewer than 10 units per day. Johnson Farm pays pickers a flat rate of $50 per day, and Henry Farm pays pickers $5 for every unit picked. The pickers know their productivity level, but the farms don't know a picker's productivity until he or she starts working.
a. At which farm will the slow pickers choose to apply?
b. At which farm will the fast pickers choose to apply?
c. Which farm will have adverse selection in the applications?


Definitions:

Clean Commerce

Business practices and operations that are environmentally sustainable and minimize harm to the environment and to human health.

Radical Incrementalism

An approach that combines small, gradual changes with occasional significant, transformative shifts to achieve long-term goals.

Sustainability Lens

An approach to making decisions that consider the long-term impacts on environmental, social, and economic factors.

Rate of Replenishment

The speed at which resources are renewed or restocked to their original levels.

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