A Small Community Has 10 People, Each of Whom Has

question 10

Multiple Choice

A small community has 10 people, each of whom has a wealth of $3,000.Each individual must choose whether to contribute $300 or $0 to the support of public entertainment for their community.The money value of the benefit that a person gets from this public entertainment is .50 times the total amount of money contributed by individuals in the community.

• A)This game has a dominant strategy equilibrium in which all 10 citizens contribute $300 to support public entertainment.
• B)This game has two Nash equilibria, one in which everybody contributes $300 and one in which no-body contributes $300.
• C)This game has no Nash equilibrium in pure strategies, but has a Nash equilibrium in mixed strategies.
• D)This game has a Nash equilibrium in which 5 people contribute $300 and for public entertainment and 5 people contribute nothing.
• E)This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.

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Definitions:

Inference Forms

Specific patterns of reasoning that are used to derive conclusions from premises.

Conj

This term may refer to a conjunction in logic, which is a compound statement formed by connecting two statements with the word "and."

Simp

A slang term often used to describe someone who performs excessive sympathy or attention towards another person, often without reciprocation.

Inference Forms

Patterns or templates of reasoning that show the logical connection between premises and conclusion.