5 QiaAt a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how manydollars to contribute from the interval [0,10]. The manager of these 20 employees announces that she will contribute d dollarsfor every dollar that an employee contributes.The payoff to employee i who makes contribution of x; dollars isb;(1+d)x; – x¡, where b; > 0.Assume that d = 2, b; = 0.25 for i = 1, 2, ..., 10, andb; = 0.5 for i = 11, 12, ..., 20.What is the best contribution level of any employee i for i = 11, 12, ..., 20.Numerical answer

*Answer: The payoff of the employee i makes a contribution with in an interval [0,10] is given as:…

20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how ribute from the interval [0,10]. The manager of these 20 employees announces that she will contribute r that an employee contributes. employee i who makes contribution of x; dollars is b;(1+d)x; – x;, where b; > 0. I= 2, b; = 0.25 for i = 1, 2, ..., 10, and = 11, 12, ..., 20. st contribution level of any employee i for i = 11, 12, ..., 20. rer

20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how ribute from the interval [0,10]. The manager of these 20 employees announces that she will contribute r that an employee contributes. employee i who makes contribution of x; dollars is b;(1+d)x; – x;, where b; > 0. I= 2, b; = 0.25 for i = 1, 2, ..., 10, and = 11, 12, ..., 20. st contribution level of any employee i for i = 11, 12, ..., 20. rer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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