For questions 39-43, suppose that two such farmers form a group and borrow from the bank...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For questions 39-43, suppose that two such farmers form a group and borrow from the bank with joint liability. Assume that farmers act in unison so as to maximize their joint expected payoff. Question 39 (2 points) For a given repayment, R, what is the expected joint income of the farmers if they incur the cost to learn the proper fertilizer use? 360 - 2R 440 - 2R 400-2R 320 - 2R Saved Question 40 (3 points) If they choose not to learn, what is the probability that they will repay what they owe in full? 0.84 0.25 0.5625 0.16 Question 41 (3 points) What is their joint expected payoff if they don't learn? 67.2 0.32R 110 0.5R 80 – 0.32R 96 - 0.32R Question 42 (3 points) ** What is the maximum repayment, R that the bank could charge while still inducing the farmers to learn about fertilizer use? ** R = OR** OR** OR** = 193.33 = 167 = 204.76 150.48 9 Question 43 (3 points) What is the expected payoff of the bank when R = R**? 23.67 20.48 16.67 35.76 For questions 39-43, suppose that two such farmers form a group and borrow from the bank with joint liability. Assume that farmers act in unison so as to maximize their joint expected payoff. Question 39 (2 points) For a given repayment, R, what is the expected joint income of the farmers if they incur the cost to learn the proper fertilizer use? 360 - 2R 440 - 2R 400-2R 320 - 2R Saved Question 40 (3 points) If they choose not to learn, what is the probability that they will repay what they owe in full? 0.84 0.25 0.5625 0.16 Question 41 (3 points) What is their joint expected payoff if they don't learn? 67.2 0.32R 110 0.5R 80 – 0.32R 96 - 0.32R Question 42 (3 points) ** What is the maximum repayment, R that the bank could charge while still inducing the farmers to learn about fertilizer use? ** R = OR** OR** OR** = 193.33 = 167 = 204.76 150.48 9 Question 43 (3 points) What is the expected payoff of the bank when R = R**? 23.67 20.48 16.67 35.76
Expert Answer:
Answer rating: 100% (QA)
Answer For Question 39 Given that the expected joint income of the farmers if they ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Two software companies sell competing products. These products are substitutes, so that the number of units that either company sells is a decreasing function of its own price and an increasing...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Hi, I need help with this accounting problem, thanks inadvance.l [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two...
-
An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31 a. From the data in this bank reconciliation, prepare a new bank...
-
Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year...
-
Assume that the block on the table in Figure P8.43 has half the inertia of the hanging block. (a) You push the block on the table to the right so that it starts to move. If the magnitude of the...
-
Quail Company purchases 80% of the common stock of Commo Company for $800,000. At the time of the purchase, Commo has the following balance sheet: The fair values of assets are as follows: Cash...
-
Describe the importance of QuickBooks and how it has changed the world of accounting. Be specific - what are some of the features and functionalities of QuickBooks that help businesses grow?
-
Consider five investment plans at annual interest rates of 4.85% compounded monthly Investor A: Invest $320 per year for the first 10 years of his career. At the end of 10 years, make no further...
-
You are one of Parlys lawyers prior to a planned meeting with isaiah and Tina , parly meets with you to advise icon on its strategy for forcing sushi me to comply with icons demands Which disclosure...
-
How can the topic of "elasticity" be related to agriculture. Please Cite references for study purposes.?
-
ASSESSMENT 2 - PROJECT STUDENT INFORMATION This information is to be handed to each student to outline the assessment requirements PART - A For this assessment, you are required to administer...
-
The circular arc shown below carries a charge per unit length = cos(6), where 0 is measured from the x-axis. What is the electric field at the origin? (Use the following as necessary: 10, 0, 0, r.) ...
-
To drive a typical car at 43 mph on a level road for one hour requires about 3.5 10^7 J of energy. Suppose we tried to store this much energy in a spinning, solid, uniform, cylindrical flywheel. A...
-
Tim Jones is an independent I.T. Consultant who services businesses and residential clients on their I.T. needs. The business is a sole proprietorship. He rents an office space to store equipment and...
-
Tell whether the angles or sides are corresponding angles, corresponding sides, or neither. AC and JK
-
A little exchange economy has just two consumers, named Kenand Barbie, and two commodities, quiche and wine. Kens initial endowment is 3 units of quiche and 2 units of wine. Barbies initial endowment...
-
A parent has two children named A and B and she loves both of them equally. She has a total of $1,000 to give to them. (a) The parents utility function is U(a, b) = a + b, where a is the amount of...
-
Sidewalk Sam, from the previous problem, has the utility function for consumption in the two states of nature u(cs, cr, ) = c1s cr, Where cs is the dollar value of his consumption if it shines, cr is...
-
Why is it difficult to convict organized crime leaders?
-
How would an audit not catch missing cash amounts of this magnitude?
-
In Al Capones time, why would judges and law enforcement and other responsible parties ignore and condone his activities? Do persons in authority act similarly in todays society (examples)?
Study smarter with the SolutionInn App