Suppose that you discount the future hyperbolically. Assume that both 3 and 8 are strictly greater than zero but strictly smaller than one. At t= 0, you are given the choice between the following three options: a (1 utile at t = 0), b (2 utiles at t = 1), and c (3 utiles at t = 2). As a matter of fact, at t = 0 you are indifferent between a and b and between b and c. (a) Compute B and 6.

Suppose that you discount the future hyperbolically. Assume that both 3 and 8 are strictly greater than zero but strictly smaller than one. At t= 0, you are given the choice between the following three options: a (1 utile at t = 0), b (2 utiles at t = 1), and c (3 utiles at t = 2). As a matter of fact, at t = 0 you are indifferent between a and b and between b and c. (a) Compute B and 6.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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