In the Town of Torrelodones, Each of the N >

question 7

Multiple Choice

In the town of Torrelodones, each of the N > 2 inhabitants has $100.They are told that they can all voluntarily contribute to a fund that will be evenly divided among all residents.If $F are contributed to the fund, the local K-Mart will match the private contributions so that the total amount to be divided is $2F.That is, each resident will get back a payment of $2F/N when the fund is divided.If the people in town care only about their own net incomes, in Nash equilibrium, how much will each person contribute to the fund?

• A)$0
• B)$10
• C)$20
• D)$50
• E)$100

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Definitions:

Job Satisfaction

The level of contentment individuals feel with their job roles, encompassing aspects like work environment, duties, and compensation.

Employment Standards Legislation

Laws that define the rights and responsibilities of employees and employers, including minimum wage, working hours, and safety regulations.

Employee

describes an individual who works part-time or full-time under a contract of employment, contributing to the business in exchange for compensation.

Contractor

An individual or company that undertakes a contract to provide materials or labor to perform a service or do a job.