Equilibrium conditions for his optimal allocation of time

Assignment Help Microeconomics
Reference no: EM13690274

Suppose a student has no more than t minutes to write an examination consisting of two questions, 1 and 2. He receives A points if he gets question 1 correct and B points if he gets question 2 correct. He knows that if he spends s minutes in question 1 (assume he uses up all his time), then

1) the probability that he gets it correct is p(s)

2) the probability that he gets the second one correct is q(t-s).

Both p( ) and q( ) are strictly increasing and concave functions. In addition, assume there is no partial credit, and the student receives constant marginal utility for additional points.

(Question a) Derive the equilibrium conditions for his optimal allocation of time between the two questions.

(Question b) How is his allocation a acted by a change in A or B?

Reference no: EM13690274

Questions Cloud

As consumer-can you ever get too much of a product : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
What is owed after the first two years of payments : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
Equilibrium conditions for his optimal allocation of time : Suppose a student has no more than t minutes to write an examination consisting of two questions, 1 and 2. He receives A points if he gets question 1 correct and B points if he gets question 2 correct. He knows that if he spends s minutes in question..
Determine the current profits of the two firms : Two firms compete in a homogeneous product market where the inverse demand function is   P = 20 - 5 Q (quantity is measured in millions). Firm 1 has been in business for one year, while firm 2 just recently entered the market.
Million labor-force participants : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
Calculate the expected market price : You are the manager of a firm that sells a commodity in a market that resembles perfect competition, and your cost function is   C(Q)= 2Q+3Q2. Calculate the expected market price.

Reviews

Write a Review

Microeconomics Questions & Answers

  Analyze the past current and future cost considerations of

analyze the past current and future cost considerations of the company and on the basis of your costs analysis create a

  How many ads will the clubs want to purchase as a group

Each of 50 golf clubs in the Niagara Region has a demand for generic advertising of Q = 200 - P. Ads cost $3000 each. How many ads will the clubs want to purchase as a group?

  Using a conventional supply-demand diagram

Presume that the government decides to guarantee an above-market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the following gains and losses from such a price support: Th..

  Hypothesize the basic short-run and long-run behaviors

Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a market economy. and analyze at least three (3) possible areas for the industry that could lead to transaction costs, and explain each in detail.

  Should the governments anti-smoking campaign be successful

Firms in a competitive market are unable to dictate the price for which they sell an item for and over a long period of time will be unable to make an economic profit.

  His most recent venture is selling homemade

Danny “Dimes” Donahue is a neighborhood’s 9-year old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.75 each, he sells 250. At a price of $1.25 each, he sells 300.

  What the fed must do to the money supply

On the other hand, suppose that the Fed has a goal of 10% inflation. Use similar logic as in the previous question to show what the Fed must do to the money supply.

  Explain what is strategic management and planning why would

select a small business that you may want to start. jeans company or human resource consulting firmdescribe what is

  Explain how the economy of danland might grow

Consider a simple island economy where the sun is always gentle and warm and the breezes are cool. Let's call this island DanLand. There are four product markets in DanLand: coconuts, fish, textiles, and beer. Coconuts grow freely around D..

  Recognize the three most significant expenditure programs

1. for each of the following determine whether it is a private good public good common resource or a club good.a.

  Suppose a country is in a fixed exchange rate regime

Suppose a country is in a fixed exchange rate regime. Now suppose that individuals expect that policy makers will devalue its currency. Describe the various actions that policy makers can choose in response to this expected devaluation.

  Mode of production

What does Marx mean when he uses the term “mode of production”? How is the mode of production related to the forces of production and the relations of production? (Be sure to carefully define ‘forces of production’ and ‘relations of production’ in yo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd