Asked by Jeanette Retana on Apr 25, 2024
Verified
If the apartment owner can somehow see the effort of the each of the room mates and punishes with a loss of 5 to any room mate who doesn't clean,is that likely to lead to a more efficient outcome?
A) No because they would have to clean against their will
B) Yes because now they would both get a utility of 3
C) No because neither of them like cleaning
D) No because filth is good
Efficient Outcome
A situation in economics in which resources are allocated in the most effective manner, maximizing the potential benefit to an economy or market without wasting resources.
Utility
In economics, a measure of satisfaction or happiness that consumers get from consuming goods or services.
Apartment Owner
An individual or entity that holds the title to a residential unit in a building.
- Exhibit comprehension of efficiency and the optimal results in game scenarios.
- Clarify the influence of deterrents and incentives on the development of strategies and establishment of equilibria.
Verified Answer
RK
Ready Karo26 days ago
Final Answer :
B
Explanation :
With the threat of punishment, both John and Joe have an added incentive to clean the apartment. The outcome is likely to be more efficient as they both clean and earn a utility of 3 each.
Learning Objectives
- Exhibit comprehension of efficiency and the optimal results in game scenarios.
- Clarify the influence of deterrents and incentives on the development of strategies and establishment of equilibria.