A city park has become a popular hotspot for food truck vendors, offering a variety of cuisines to passersby. The food trucks offer free meals to homeless groups, but university students often exploit this charity by waiting there. Both groups gain a payoff of 10 units for receiving a free meal. For homeless individuals, the cost of waiting in line is calculated as t²/320. Similarly, for college students, the cost of waiting is also t²/160. Here's the challenge: the food truck vendors cannot differentiate between homeless individuals and college students just by looking at them. This means they cannot know whether someone in line genuinely needs the free meal due to their homeless status or is a college student trying to score a complimentary meal. 1. What is the minimum wait time t to separate types? 2. After a while, the food truck vendors find they can successfully identify and turn away student students half the time. Students who are turned away receive no free meal and incur a cost of 5 for their time and embarrassment. Will the partial identification of university students reduce or increase the answer in part (a)? Explain.
A city park has become a popular hotspot for food truck vendors, offering a variety of cuisines to passersby. The food trucks offer free meals to homeless groups, but university students often exploit this charity by waiting there. Both groups gain a payoff of 10 units for receiving a free meal. For homeless individuals, the cost of waiting in line is calculated as t²/320. Similarly, for college students, the cost of waiting is also t²/160. Here's the challenge: the food truck vendors cannot differentiate between homeless individuals and college students just by looking at them. This means they cannot know whether someone in line genuinely needs the free meal due to their homeless status or is a college student trying to score a complimentary meal. 1. What is the minimum wait time t to separate types? 2. After a while, the food truck vendors find they can successfully identify and turn away student students half the time. Students who are turned away receive no free meal and incur a cost of 5 for their time and embarrassment. Will the partial identification of university students reduce or increase the answer in part (a)? Explain.
Chapter1: Making Economics Decisions
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![Question 3
A city park has become a popular hotspot for food truck vendors, offering a variety
of cuisines to passersby. The food trucks offer free meals to homeless groups, but
university students often exploit this charity by waiting there. Both groups gain a
payoff of 10 units for receiving a free meal.
For homeless individuals, the cost of waiting in line is calculated as t2/320.
Similarly, for college students, the cost of waiting is also t2/160.
Here's the challenge: the food truck vendors cannot differentiate between homeless
individuals and college students just by looking at them. This means they cannot
know whether someone in line genuinely needs the free meal due to their homeless
status or is a college student trying to score a complimentary meal.
1. What is the minimum wait time t to separate types?
2. After a while, the food truck vendors find they can successfully identify and
turn away student students half the time. Students who are turned away receive
no free meal and incur a cost of 5 for their time and embarrassment. Will the
partial identification of university students reduce or increase the answer in
part (a)? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e4eb4e6-79cb-4bb6-9ca2-1e2a0d9e5233%2F2f1f135c-7b98-4181-9478-9d9131972ed0%2Ftdkhh7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
A city park has become a popular hotspot for food truck vendors, offering a variety
of cuisines to passersby. The food trucks offer free meals to homeless groups, but
university students often exploit this charity by waiting there. Both groups gain a
payoff of 10 units for receiving a free meal.
For homeless individuals, the cost of waiting in line is calculated as t2/320.
Similarly, for college students, the cost of waiting is also t2/160.
Here's the challenge: the food truck vendors cannot differentiate between homeless
individuals and college students just by looking at them. This means they cannot
know whether someone in line genuinely needs the free meal due to their homeless
status or is a college student trying to score a complimentary meal.
1. What is the minimum wait time t to separate types?
2. After a while, the food truck vendors find they can successfully identify and
turn away student students half the time. Students who are turned away receive
no free meal and incur a cost of 5 for their time and embarrassment. Will the
partial identification of university students reduce or increase the answer in
part (a)? Explain.
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