ollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute d doll -r every dollar that an employee contributes. he payoff to employee i who makes contribution of x; dollars is bi (1 + d) xi-xi, where b; > 0. ssume that d = 4, bį = 0.25 for i = 1, 2, ..., 10, and ..., 20 = 0.5 for i = = 11, 12,.. What is the total contribution level of the manager?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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At a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how many
dollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute d dollars
for every dollar that an employee contributes.
The payoff to employee i who makes contribution of x₂ dollars is
Assume that d = 4, bi
= 0.5 for i
=
=
bi
11, 12, 20
What is the total contribution level of the manager?
Numerical answer
bi (1 + d)x; − x;į, where b; > 0.
10, and
0.25 for i = 1, 2, . . .,
...
Transcribed Image Text:At a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how many dollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute d dollars for every dollar that an employee contributes. The payoff to employee i who makes contribution of x₂ dollars is Assume that d = 4, bi = 0.5 for i = = bi 11, 12, 20 What is the total contribution level of the manager? Numerical answer bi (1 + d)x; − x;į, where b; > 0. 10, and 0.25 for i = 1, 2, . . ., ...
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