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

question 7

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 $250 for a klutz and $100 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 16 < H < 80.
• B)if 16 < H < 40.
• C)only in the limit as H approaches infinity.
• D)for all positive values of H.
• E)if 14 < H < 35.

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Definitions:

Thalamus

A brain structure that acts as a relay station for sensory signals, excluding smell, to the cerebral cortex.

Olfaction

A sensory process involving the recognition and perception of smells through specialized receptor cells in the nasal cavity.

Audition

Audition refers to the sense of hearing, the process by which sound waves are interpreted by the brain.

Gustation

The sense of taste, one of the five traditional senses, involving the detection of flavor, especially in the mouth.