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 losing $200 for a klutz and $150 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 15 < H < 20.
• B)if 15 < H < 40.
• C)for all positive values of H.
• D)only in the limit as H approaches infinity.
• E)if 12.50 < H < 16.67.

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Definitions:

Noisy

describes environments or sounds that are loud and disruptive, making it hard to hear or concentrate.

Boisterous

Characterized by noisy, energetic, and cheerful behavior, often in a rowdy manner.

Psychoanalytic Theory

A theory of personality development and therapeutic technique that emphasizes unconscious motives and conflicts as forces that shape human behavior.

Prime Focus

represents the central or primary point of attention, interest, or activity.