Expected cost of building the boat, Macroeconomics

Assignment Help:

Half the members of a fishing tribe catch four fish per day and half catch 10 fish per day. A group of 10 members could build a boat for another tribe in one day and receive a payment of 45 fish for the boat.

Suppose the boat builders are drawn at random from the tribe. From the tribe%u2019s perspective, what is the expected cost of building the boat?

now supposing that members are selected based on opportunity cost, the minimum cost that the boat could be built for is? fish?

Related Discussions:- Expected cost of building the boat

Unemployment, critically analyse the ways at which the govement of zimbabwe...

critically analyse the ways at which the govement of zimbabwe has put in place to address unequal employment opportunitiesbetween men andwomen

State the marginal productivity theory, Q. State the Marginal Productivity ...

Q. State the Marginal Productivity Theory. What are its features and assumption? Marginal Productivity Theory of distribution states that in a capitalist economy the demand for

What do you mean by wage inflation, Q. What do you mean by Wage inflation? ...

Q. What do you mean by Wage inflation? We will develop the Keynesian model removing the assumption of fixed nominal wages. We state wage inflation p w as the percentage averag

American households use a cell phone, It is reported that 16% of American h...

It is reported that 16% of American households use a cell phone exclusively for their telephone service. In a sample of eight households, find the probability that: A) None use a c

Nominal interest rate of 15% compounded annually, An investor has a series ...

An investor has a series of three $15,000 payments expected to be realized at the end of years three, four, and five. Calculate the present value P at time zero and the correspondi

Income elasticity, If 5000 units are sold and income increases by 20% with ...

If 5000 units are sold and income increases by 20% with an income elastiticy of +2, what will the number of sales units be after the increase

Economy could become stuck, According to Keynes, the economy could become s...

According to Keynes, the economy could become stuck at a low income level if: A. aggregate demand and aggregate supply are independent of one another. B. declines in aggregate dema

Open market policy, describe how open market policy can be used to stimulat...

describe how open market policy can be used to stimulate economic activity in the country

Public Sector, What is top marginal rate of taxation?

What is top marginal rate of taxation?

Financial crisis in terms of adverse, Briefly explain the dynamics of the 2...

Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages