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

question 15

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 $150 for a klutz and $50 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 20 < H < 60.
• B) if 20 < H < 120.
• C) only in the limit as H approaches infinity.
• D) for all positive values of H.
• E) if 16.67 < H < 50.

---

Definitions:

Parallel Play

A developmental stage where children play adjacent to each other, but do not interact or play together.

Cooperative Play

A stage in child development where children play together, creating and organizing games and activities with each other.

Construction Bricks

Interlocking pieces of plastic used as toys for building various structures and objects.

Rough-And-Tumble

A type of play which involves physical activities like wrestling and rolling around, often seen among children and considered important for social development.