subjects are offered $225 now, period 0 Or some amount Xt, period t What is Xt to persuade them to wait results were X1=$375, X2=$400 (subjects'll accept $375 instead of $225 in t=1, and receive $400 in t=2) PLS GIVE EXPLANATION Suppose subjects are actually B, ő discounters. It can be shown that 8 = .9375. What is B? B = .703 B = .5625 B = .64 OB = .8

subjects are offered $225 now, period 0 Or some amount Xt, period t What is Xt to persuade them to wait results were X1=$375, X2=$400 (subjects'll accept $375 instead of $225 in t=1, and receive $400 in t=2) PLS GIVE EXPLANATION Suppose subjects are actually B, ő discounters. It can be shown that 8 = .9375. What is B? B = .703 B = .5625 B = .64 OB = .8

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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subjects are offered $225 now, period 0
Or some amount Xt, period t
What is Xt to persuade them to wait
results were X1=$375, X2=$400 (subjects'll
accept $375 instead of $225 in t=1, and receive
$400 in t=2)
PLS GIVE EXPLANATION
Suppose subjects are actually B, 8 discounters. It can be shown that
8 = .9375. What is B?
B = .703
OB = .5625
OB = .64
OB = .8

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A5