Suppose That in Enigma, Ohio, Klutzes Have a Productivity of $1,000

question 14

Multiple Choice

Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $4,000 per month. You can't tell klutzes from kandos by looking at them or asking them, and it is too expensive to monitor individual productivity. Kandos, however, have more patience than klutzes. Listening to an hour of dull lectures is as bad as losing $250 for a klutz and $100 for a kando. There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $4,000 per month and anybody who does not is paid $1,000 per month

• A) if 12 < H < 30.
• B) if 12 < H < 60.
• C) for all positive values of H.
• D) only in the limit as H approaches infinity.
• E) if 10 < H < 25.

---

Definitions:

Substance Intoxication

Experience of significantly maladaptive behavioral and psychological symptoms due to the effect of a substance on the central nervous system that develops during or shortly after use of the substance.

Substance Tolerance

A reduced response to a drug over time, requiring an increase in dosage to achieve the originally desired effect.

Alcohol

A psychoactive substance found in drinks like beer, wine, and spirits, known for its effects on mood, behavior, and health.

Nicotine

Alkaloid found in tobacco; operates on both the central and peripheral nervous systems, resulting in the release of biochemicals, including dopamine, norepinephrine, serotonin, and the endogenous opioids.