Consider two scientists: Dr. Bunsen Honeydew and Beaker. Each decides whether to discover new ideas or instead steal the other’s ideas. Each can discover $500 worth of ideas, but laboratory materials cost $300 if one chooses to attempt to discover ideas. It costs $100 to steal ideas instead (and then sell them as your own). Note that if both steal, they both end up with nothing (no costs either). Fill in the payoff matrix below. Put Bunsen's payoffs first and Beaker's second.
Consider two scientists: Dr. Bunsen Honeydew and Beaker. Each decides whether to discover new ideas or instead steal the other’s ideas. Each can discover $500 worth of ideas, but laboratory materials cost $300 if one chooses to attempt to discover ideas. It costs $100 to steal ideas instead (and then sell them as your own). Note that if both steal, they both end up with nothing (no costs either). Fill in the payoff matrix below. Put Bunsen's payoffs first and Beaker's second.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider two scientists: Dr. Bunsen Honeydew and Beaker. Each decides whether to discover new ideas or instead steal the other’s ideas. Each can discover $500 worth of ideas, but laboratory materials cost $300 if one chooses to attempt to discover ideas. It costs $100 to steal ideas instead (and then sell them as your own). Note that if both steal, they both end up with nothing (no costs either).
Fill in the payoff matrix below. Put Bunsen's payoffs first and Beaker's second.
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