​Use the Following Case from Question

question 29

Multiple Choice

​Use the following case from question
Two roommates John and Joe are playing a simultaneous game of cleaning the apartment.If neither of them clean,the apartment gets filthy and both get a utility of 2.If John cleans and Joe doesn't,John gets a utility of 1 and Joe gets a utility of 4.If Joe cleans and John doesn't,Joe gets a utility of 1 and John gets a utility of 4 and if both clean up the apartment,they each get a utility of 3.
-​If the apartment owner decides to fine both the roommates if the apartment is dirty,such that now if neither of them clean they each get a 5 utility loss,what would the new equilibrium be now?

• A)​John cleans,Joe doesn't
• B)Joe cleans,John doesn't
• C)Neither of them clean the apartment
• D)​Both A&B

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Definitions:

Indorsement

A signature or stamp placed on a document that confirms and details the signing authority's approval of the document.

Warranty Liability

The legal obligation of a seller to compensate the buyer for defects or issues with a product or service that were guaranteed against in a warranty.

Good Faith

Conducting oneself with honesty and sincerity without intending to defraud or deceive others.

Preprinted Promissory Note

A standardized, fill-in-the-blank form that evidences a promise to pay a specified amount of money to a named party under agreed terms.