Jackson, Suzanne, Jared, and Jessica are college roommates. They're trying to decide where the four of them should go for spring break: Las Vegas or Orlando. If they order the tickets by 10:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200 per person. The following table shows the benefit (in dollar terms) that each roommate would get from the two trips. Roommate Jackson Suzanne Jared Jessica Benefit from Las Vegas $500 $750 $800 $1,000 Benefit from Orlando $1,200 $750 $600 $550 The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for 9:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations. The roommates will get the most total benefit if they choose to go to Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for?

Jackson, Suzanne, Jared, and Jessica are college roommates. They're trying to decide where the four of them should go for spring break: Las Vegas or Orlando. If they order the tickets by 10:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200 per person. The following table shows the benefit (in dollar terms) that each roommate would get from the two trips. Roommate Jackson Suzanne Jared Jessica Benefit from Las Vegas $500 $750 $800 $1,000 Benefit from Orlando $1,200 $750 $600 $550 The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for 9:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations. The roommates will get the most total benefit if they choose to go to Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them…

A: The market is a place where the buyers and the sellers will interact with each other and the…

Q: Suppose you work for United Airlines. You have been assigned to conduct a cost-benefit analysis for…

A: Cost-benefit analysis is an economic tool used to evaluate the pros and cons of a decision or…

Q: Problem 3 Suppose you and your class mate have to do a group assignment. Both of you can decide to…

A: Nash equilibrium for the payoff matrix given in the questionBest response of You when classmate…

Q: You sell homemade candles online for $50 each and you hire your family members to make the candles.…

A: Break even quantity is the quantity at which total revenue = total cost. Where total revenue = 50q

Q: ou work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them…

A: Cross-price elasticity for demand of good x with respect to price of good y is calculated as When…

Q: You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them…

A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with…

Q: Suppose Darcy has promised to mow his mum's lawn, either this Saturday (t-1), Saturday week (t=2),…

A: To determine Darcy's preferred period to mow the lawn based on his hyperbolic discounting…

Q: Larry and Megan run a catering business in which they have two major tasks: getting new clients and…

A: The international trade would involve various goods and services. The trade would exchange goods and…

Q: Cooper and Rebecca run the only two lawncare companies in a small town. If they worked…

A: Payoff Matrix refers to when a firm opts for various strategies given the strategies o its rival.…

Q: Problem 3 Suppose you and your class mate have to do a group assignment. Both of you can decide to…

A: Nash equilibrium for payoff matrix given in the questionBest response of you when classmate…

Q: You have decided to specialize in gathering firewood while Friday has specialized in fishing. Your…

A: There two potential trading partners : You & Friday You specializes in production of…

Q: Consider the following situation. Maipo and Pisco need to decide how to divide a cake between the…

A: A situation in which neither of the participants has a incentive to alter their respective…

Q: Three longtime friends-Linda, Stella, and Lydia-are deciding how they will spend their Sunday…

A: Three friends given: Linda,Stella,Lydia. Decision is to be made regarding whether they should go to…

Q: Ana and Ivan each individually and simultaneously decide whether to spend the evening at a play or a…

A: Ana and Ivan's game involves participants choosing between performing (P) with Ivan (-1 unit) or…

Q: Suppose you observe a person's answer to two decision problems. Problem 1: You are offered $40…

A: Rational decision making is a multi-step process for making choices between alternatives. The…

Q: What is a cooperative strategy that Apple is using or has used. If they aren’t using one, how might…

A: Apple Inc., a prominent technological company globally, has implemented diverse tactics to sustain…

Q: After graduation, you face a choice. You can work for a multinational consulting firm and earn a…

A: Write the formula to calculate accounting profit as follows: Accounting profit = revenue - explicit…

Q: Shannon is the mother of a 3-year old. She currently stays home with her child. Before giving birth,…

A: Given,Shannon annual earning before giving birth = $36,000Shannon can earn with new job opportunity…

Question

Fill in the table with each roommate's preferred location, assuming that a given roommate will abstain if he or she has no preference.
Roommate
Jackson
Suzanne
Jared
Jessica
Vote
Under majority rule, the roommates will vote to go to
Therefore, majority rule leads to an economically
Suppose Jessica misses the vote, leaving Jackson, Suzanne, and Jared to figure out where they're going to go.
outcome.
Jackson and Jared argue for their preferred destinations, but Suzanne offers to vote with Jackson if Jackson will vote on her side in an upcoming class
election. This is an example of

5. Majority-rule benefit-cost analysis
Jackson, Suzanne, Jared, and Jessica are college roommates. They're trying to decide where the four of them should go for spring break: Las Vegas or
Orlando. If they order the tickets by 10:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200
per person.
The following table shows the benefit (in dollar terms) that each roommate would get from the two trips.
Roommate
Jackson
Suzanne
Jared
Jessica
Benefit from Las Vegas
$500
$750
$800
$1,000
Benefit from Orlando
$1,200
$750
$600
$550
The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for
9:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations.
The roommates will get the most total benefit if they choose to go to
Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Frank and Nancy met at a sorority sock hop. They agreed to meet for a date at a local bar the next week. Regrettably, they were so fraught with passion that they forgot to agree on which bar would be the site of their rendezvous. Luckily, the town has only two bars, Rizotti's and the Oasis. Having discussed their tastes in bars at the sock hop, both are aware that Frank prefers Rizotti's to the Oasis and Nancy prefer the Oasis to Rizotti's. In fact, the payoffs are as follows. If both go to the Oasis, Nancy's utility is 3 and Frank's utility is 2. If both go to Rizotti's, Frank's utility is 3 and Nancy's utility is 2. If they don't both go to the same bar, both have a utility of 0. There are two Nash equilibrium in pure strategies and a Nash equilibrium in mixed strategies where the probability that Frank and Nancy go to the same bar is 12/25. This game has two Nash equilibria in pure strategies and a Nash equilibrium in mixed strategies where each person has a probability of 1/2 of…
1. Alizeh and Kelly were traveling together and have gotten stranded at an airport overnight. They have no cash, but they did both think to bring granola bars and turkey sandwiches with them. They currently each have several granola bars and a few sandwiches. Alizeh announces that she'd be willing to give up a granola bar for one turkey sandwich. Kelly responds that turkey sandwiches are bigger than granola bars so she would be willing to give up a granola bar if she could get half a turkey sandwich. Is Kelly and Alizeh's current allocation of granola bars and turkey sandwiches efficient? Explain why or why not. (Note that you cannot rely on a rule here – you have to specifically explain why the allocation does or does not meet the definition of an efficient allocation.)
Van has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Amy, whom Van has wanted to date for a long time, asks him to a party. Van would prefer to go to the party with Amy and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. From the perspective of an economist, if Van decides to go to the party with Amy, what has he just done? 1. Incorrectly allowed a sunk cost to influence his decision 2. Made a choice that was not optimal 3 Correctly ignored a sunk cost Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Brian and Matt own the only two bicycle repair shops in town. Each must choose between a low price for repair work and a high price. The yearly economic profits from each strategy are indicated in Figure bellow. The upper right side of each rectangle shows Brian's profits; the lower left side shows Matt's profits. Matt's Actions Low Price High Price Low Price Brian's Actions $1,500 $1,500 $200 $3,000 High Price $5,000 $200 $4,000 $4,000 Which of the following statements is correct for a one-trial game? The market equilibrium price is the low price. A market equilibrium price cannot be established unless Brian and Matt collude. A market equilibrium price cannot be established unless Brian or Matt engages in tit-for-tat strategy. A market equilibrium price cannot be established without repeated trials. The market equilibrium price is the high price.
Problem: Imagine you have two competing athletes who have the option to use an illegal and dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gain an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping (the athletes believe the advantage over their competitor outweighs the risks from doping ). However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping. What outcome do we expect from these two athletes? Please use ideas like concepts of monopolies, Oligopolies and Game Theory and Factor markets for this scenario.
You want to travel to Las Vegas to celebrate spring break and your "A" in your microeconomics class! You are trying to figure out if you should drive or fly. A round trip airline ticket from Riverside to Las Vegas costs $350 and flying there and back takes about 5 hours. Driving roundtrip to Las Vegas costs about $50 in gas and takes about 10 hours. Other things constant, what is the minimum amount of money that you would have to expect to make by gambling in Las Vegas to induce you as a rational individual to fly rather than drive? O $10 an hour $60 an hour O $70 an hour O $300 an hour
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the skirt: Store Travel Time Each Way Price of a Skirt (Minutes) (Dollars per skirt) Local Department Store 15 102 Across Town 30 85 Neighboring City 60 76 Juanita makes $42 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.