8. Ann can finish a project either this week or next week. The delayed rewards are 10 in either case. (The project can be done only once or not at all). Next week is busy and the cost of finishing the project are lower this week. The immediate costs are 4 this week and 6 next week. 1 and B < 1. Imagine that Ann Ann has a quasi-hyperbolic utility with & |3D does not finish the project this week. Then she should finish it next week (A) if ß > 0.6; (B) if ß > 0.4; (C) only if ß = 1; (D) for any ß.
8. Ann can finish a project either this week or next week. The delayed rewards are 10 in either case. (The project can be done only once or not at all). Next week is busy and the cost of finishing the project are lower this week. The immediate costs are 4 this week and 6 next week. 1 and B < 1. Imagine that Ann Ann has a quasi-hyperbolic utility with & |3D does not finish the project this week. Then she should finish it next week (A) if ß > 0.6; (B) if ß > 0.4; (C) only if ß = 1; (D) for any ß.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![8. Ann can finish a project either this week or next week. The delayed rewards
are 10 in either case. (The project can be done only once or not at all).
Next week is busy and the cost of finishing the project are lower this week. The
immediate costs are 4 this week and 6 next week.
1 and B < 1. Imagine that Ann
Ann has a quasi-hyperbolic utility with &
|3D
does not finish the project this week. Then she should finish it next week
(A) if ß > 0.6; (B) if ß > 0.4; (C) only if ß = 1; (D) for any ß.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15075cbb-1585-4001-8b39-493310d05b8a%2F7ae54925-e461-49f3-bf90-bf507f4661b7%2Fy53kj2.png&w=3840&q=75)
Transcribed Image Text:8. Ann can finish a project either this week or next week. The delayed rewards
are 10 in either case. (The project can be done only once or not at all).
Next week is busy and the cost of finishing the project are lower this week. The
immediate costs are 4 this week and 6 next week.
1 and B < 1. Imagine that Ann
Ann has a quasi-hyperbolic utility with &
|3D
does not finish the project this week. Then she should finish it next week
(A) if ß > 0.6; (B) if ß > 0.4; (C) only if ß = 1; (D) for any ß.
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