Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 27, Problem 10CQ
To determine
Rate of time preference and benefit from present.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Background
You and a good friend are supposed to meet in Paris, France. You know you have arranged to meet at either the Arc de Triomphe (AdT) or at the base of the Eiffel Tower (ET) but you cannot remember which and you cannot communicate with each other.
You prefer the Arc de Triomphe. Your friend prefers the Eiffel Tower. But you both much prefer to be together rather than apart.
If you and your friend each arrive at the Arc de Triomphe, your payoff is 14 and your friend’s payoff is 10.
If you and your friend each arrive at the Eiffel Tower, you friend’s payoff is 14 but your payoff is 10.
If you go to the Arc de Triomphe and your friend goes to the Eiffel Tower, your payoff is 6 and your friend’s payoff is 6.
If you go to the Eiffel Tower and your friend goes to the Arc de Triomphe, your payoff is 4 and your friend’s payoff is 4.
If it helps, you can think of these payoffs as units of enjoyment or utility you and your friend derive from the outcomes. (As you recall, while firms…
Please solve with in 5 minutes. Sure like giving.
Many clothing stores purchased new fashions from clothing manufacturers back in the Fall, expecting to sell new fashions to consumers this Spring. Because of the pandemic, however, people are not shopping for new clothing fashions as much as the clothing retailers had expected. So these stores have on hand lots of new clothing, just sitting on their shelves, going unsold. The question for these retailers is what to do with this clothing. One option is to hang on to it and hope to sell it to consumers next year. Another option is to sell the clothing now to so-called “deep discount retailers” such as Beall’s, Marshall’s, T.J. Maxx, and Ross Dress for Less. The problem with selling to deep discount stores is that the clothing retailers will probably receive less money than they paid to get the clothing from the manufacturers.
Explain whether it makes good economic sense for clothing retailers to sell their unsold clothing to deep discounters for less than they paid for it. Identify the…
Chapter 27 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- will that be correct Explains it correctlyarrow_forwardPlease solve this with all steps.arrow_forwardave $60 and your sister has $120. You are saving $14 per week and your sister is saving $10 per week. How long will it be before you and your sister have the same amount of money? What amount would you have the same?arrow_forward
- Edna is living in a retirement home where most of her needs are taken care of, but she has some discretionaryspending. Based on the basket of goods in Table 22.5, by what percentage does Edna’s cost of living increasebetween time 1 and time 2?arrow_forwardWhat is Time Consistency? Select one: a. None of the above b. a situation in which an agent, planner or objective maximizer must make a choice about an action or decision in a future plan which is optimal at a later date but is not optimal initially c. Refers to a situation in which a policy results in varying results d. a situation in which an agent, planner or objective maximizer must make a choice about an action or decision in a future plan which is optimal initially but is no longer optimal at a later datearrow_forwardGive typed explanation of the each option givenarrow_forward
- Jack and Diane work at a bakery. Jack can make either five batches of cookies or two cakes per hour, while Diane can make either four batches of cookies or three cakes per hour. At 9:00 a.m. they receive an order for 24 batches of cookies and nine cakes. What time is the soonest they can have the order ready?arrow_forwardWhen managing time, consumers should consider time as if it were: (a) money or a scare resource (b) A commodity (c) A personal goal (d) A free resourcearrow_forwardCan you answer me as soon as possible urgent . In early April, Mr Chan went for a five-day trip in Singapore. In Singapore, he stayed in the Fullerton Hotel that close to the MRT station. During the five days stay, he went to Universal Studio Singapore, National Museum of Singapore. He joined the Singapore Duck tour and enjoyed the Singaporean Chinese food in Chinatown. Before departure, he went to Paragon shopping mall in Orchard Street, buying some souvenirs for his friends. Mr Chan returned to his home place, Hong Kong on 10th April and directly went to Courtyard by Marriott Hong Kong for seven days quarantine.(a) Identify the “purpose of travel” of Mr Chan and explain why he is considered as a tourist.(b) Name the tourism suppliers which might be related to the above passage and briefly explainthe function of each.arrow_forward
- solve this question early now.but correctly explainarrow_forwardEconomics A person likes to gamble and has $100 on him. He is going to play the following game: if he bets $b, then with probability p, 0 < p< 1, he will win $b; with probability 1 – p, he will lose his $b. He is given the opportunity to play at most 20 times. He is a very disciplined gambler and is going to use the following strategy: • Every time he plays, he will make a bet equal to half of the amount of money he has at that moment. • If the amount of money he has gets to $300 or higher, then he will stop playing. Find the probability that, starting with $100 and given 20 chances to play the game, this person will get to $300 or more. Formulate this problem recursively by writing down the “Bellman equation." What is (are) the state variable(s)? Be specific about any constraints or initial/boundary conditions for this problem.arrow_forward2) Veronica is going to sell two vases to a dealer. She can sell each vase for $10. In order to bring her vases to the dealer, Veronica needs to take a bus. There is a 50% chance that all the vases carried on one bus trip will be broken during the trip and a 50% chance that none of the vases carried on one bus trip will be broken during the trip. A roundtrip bus ticket costs $1. Veronica's net income is given by the revenues from the sale of her vases minus the cost of her bus trip(s). 2a) How many trips would Veronica make if she were risk-neutral? 2b) Suppose that Veronica's utility from income is u(w)=100ln(x+w), and that she has no wealth other than the vases (also allow her to have negative wealth as in when she takes two vases on the same trip and both break while she paid the fare). What is the expected utility of net income when Veronica takes both vases on one bus trip? And when she makes two trips? What strategy is preferred? 2c) Would Veronica's preferred strategy change if…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning