Question: Suppose that an individual contemplates committing an illegal act that will yield a gain of g dollars. Assume that the probability of apprehension is p

Suppose that an individual contemplates committing an illegal act that will yield a gain of g dollars. Assume that the probability of apprehension is p and the punishments consist of a fine, f, and a term of imprisonment, t. Let c be the dollar cost of prison per unit of time in prison.

a) Derive the expected punishment

b) Derive the condition that the offender will commit the act.

c) Derive the amount of fine that will deter offender from committing the

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