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

question 17

Multiple Choice

Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $5,000 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 $150 for a kando. There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $5,000 per month and anybody who does not is paid $1,000 per month

• A) only in the limit as H approaches infinity.
• B) if 16 < H < 53.33.
• C) for all positive values of H.
• D) if 16 < H < 26.67.
• E) if 14 < H < 23.33.

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Definitions:

Stakeholders

Individuals or groups that have an interest, stake, or investment in a business or project and can be affected by its outcomes.

Organizational Culture

The shared values, beliefs, behaviors, and norms that shape the social and psychological environment of a business or organization.

Demographic Group

A segment of the population defined or categorized by specific characteristics such as age, gender, income, etc., often used in statistical analysis.

Management Function

The roles and activities undertaken by managers to effectively and efficiently coordinate the resources of an organization towards achieving its objectives.