A Small Community Has 20 People, Each of Whom Has

question 1

Multiple Choice

A small community has 20 people, each of whom has a wealth of $12,000.Each individual must choose whether to contribute $300 or $0 to the support of public entertainment for their community.The money value of the benefit that a person gets from this public entertainment is b times the total amount of money contributed by individuals in the community.

• A)If 20b > 1, everybody is better off if all contribute to the public entertainment fund than if nobody contributes, but if 20b < 1, everybody is better off if nobody contributes than if all contribute.
• B)If 20b > 1, there is a dominant strategy equilibrium in which everybody contributes.
• C)Everybody is worse off if all contribute than if nobody contributes if b > 1, but if b < 1, everybody is better off if nobody contributes.
• D)This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.
• E)In order for there to be a dominant strategy equilibrium in which all contribute, it must be that b > 20.

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Definitions:

Promotion Wars

Intense competitive tactics where companies use aggressive promotion strategies to gain market share or outperform rivals.

Target Audience

refers to a specific group of consumers identified as the intended recipients of a product, service, or marketing campaign.

Wasted Coverage

Marketing or advertising efforts that reach a large number of individuals who are not potential customers, leading to inefficient use of resources.

Nonpersonal Communication

Messages conveyed through mass media that are not directed at specific individuals but are intended to reach a wide audience.