Question: I need help with this problem. --- Use the Gary Becker criminal decision rule to answer the following questions 19-21. Assume an individual with annual
I need help with this problem.
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Use the Gary Becker criminal decision rule to answer the following questions 19-21. Assume an individual with annual income of $100,000 (Yo) is considering committing a crime with a payoff of $20,000 (G). The individual has a 50% chance of getting caught (11) and if she does, she will get ned $10,000 (F). For question 19, what is the individual's current utility? 0 $90,000 0 $5,000 0 $10,000 0 $100,000 For question 20, what is the individual's expected utility from committing the crime? O $105,000 O $80,000 O $120,000 O $20,000For question 21, should the individual commit the crime? Why or why not? O No, because expected utility from committing the crime is less than current utility. O No, because expected utility from committing the crime is greater than current utility. 0 Yes, because expected utility from committing the crime is less than current utility. 0 Yes, because expected utility from committing the crime is greater than current utility
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