Hatfield and McCoy Burn with Hatred for Each Other

question 25

Multiple Choice

Hatfield and McCoy burn with hatred for each other.They both consume corn whisky.Hatfield's utility function is U = W_H - W ²_M /32 and McCoy's utility is U = W_M - W²_H /32, where W_H is Hatfield's whisky consumption and W_M is McCoy's whisky consumption, measured in gallons.The sheriff has a total of 82 gallons of confiscated whisky which he could give back to them.For some reason, the sheriff wants them both to be as happy as possible and he wants to treat them equally.The sheriff should give them each

• A)8 gallons and spill 66 gallons in the creek.
• B)16 gallons and spill 50 gallons in the creek.
• C)41 gallons.
• D)20 gallons and spill the rest in the creek.
• E)4 gallons and spill the rest in the creek.

---

Definitions:

Cost Leadership Strategy

A business approach aimed at becoming the lowest-cost producer in an industry to gain a competitive edge.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, due to its unique capabilities, resources, or position.

Strategic Planning Pitfall

A potential mistake or oversight in the strategic planning process that can undermine its effectiveness or lead to failure.

Failures of Substance

Significant shortcomings or mistakes that impact the performance or credibility of an entity.