(Appendix) If the Cost of Search Is $3, and Wages

question 22

Multiple Choice

(Appendix) If the cost of search is $3, and wages are uniformly distributed between $20 and $50, what is the smallest wage you should accept if you are risk neutral?

• A)$36.58
• B)$33.42
• C)$46.58
• D)28.73

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Definitions:

Counterbalanced

A method used in experiments to control for the effects of order in which treatments are administered by varying the order across different participants.

Swimming Speed

The rate at which an individual or object moves through water, typically measured in distance over time.

Fins

External appendages on fish and some other aquatic animals used for propulsion, steering, and balance in the water.

Fatigue Effect

A decrease in performance or efficiency due to tiredness, stress, or exhaustion.