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

question 2

Multiple Choice

Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $5,000 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 $5,000 per month and anybody who does not is paid $1,000 per month

• A)if 26.67 < H < 80.
• B)if 26.67 < H < 160.
• C)only in the limit as H approaches infinity.
• D)for all positive values of H.
• E)if 23.33 < H < 70.

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Definitions:

Supply Of Ethanol

Refers to the total quantity of ethanol available in the market for consumption and use, influenced by production, demand, and government policies.

Farmers Plant

The act of farmers sowing seeds in order to grow crops, which is a critical step in the agricultural production process.

Decrease In Supply

A condition where less of a good or service is available than before, at a given price, usually due to changes in production costs, technology, or seller expectations.

Higher Prices

denotes an increase in the cost required to purchase goods or services, often due to factors like inflation, increased demand, or higher production costs.