Question: Please provide the working. thanks! Let us explore a simple example of the Free Rider problem: Suppose that you and 4 of your friends go

Please provide the working. thanks!

Let us explore a simple example of the Free Rider problem: Suppose that you and 4 of your friends go to Doyles Seafood at Watsons Bay for lunch. As a group, you decide to order one main each and share the food. You also decide to split the bill evenly. Mains cost between $38.94 and $52.14 each. Suppose that your utility function is given by the following function: U (X ) = X"1 where X is the total value of food ordered. Supposing that your friends follow your lead and order mains of equivalent value to the one you order, what is the price of the main (call this x) which maximises your net utility (Le. Utility less cost)? (Give your answer to 2 decimal places)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Let us explore a simple example of the Free Rider problem: Suppose that you and 2 of your friends go to Doyles Seafood at Watsons Bay for lunch. As a group, you decide to order one main each and...

1 Suppose, for modelling simplicity, that an aircraft's fuel burn rate (i.e. the rate at which it consumes fuel over time) decreases the longer the aircraft flies. This occurs because the aircraft...

Let us explore a simple example of the Free Rider problem: Suppose that you and 3 of your friends go to Doyles Seafood at Watsons Bay for lunch. As a group, you decide to order one main each and...

Let us explore a simple example of the Free Rider problem: Suppose that you and 6 of your friends go to Doyles Seafood at Watsons Bay for lunch. As a group, you decide to order one main each and...

Let us explore a simple example of the Free Rider problem: Suppose that you and 2 of your friends go to Doyles Seafood at Watsons Bay for lunch. As a group, you decide to order one main each and...

Let us explore a simple example of the Free Rider problem: Suppose that you and 7 of your friends go to Doyles Seafood at Watsons Bay for lunch. As a group, you decide to order one main each and...

Assignment Question 1. Write the crux of the above article 2. Read the Article carefully pick out the question at least 7-8 and answer them. Except these Question i. What is the role of National...

Assignment Question 2. Read the Article carefully and answer the following question. i. What is the lessons for the managers? ii. What might these(mention in the article) differences manifest...

A vendor is recommending a program to make supervisors better at 'dealing with difficult conversations' at work. How would you apply the concepts of optimisation and the Kirkpa- trick model to set up...

Is it possible to estimate the ROI of training for all training programs? Which are more or less susceptible to this calculation? 6 TRAINING AND DEVELOPMENT CFO asks CEO, 'What happens if we invest...

A postal employee drives a delivery truck over the route shown in Fig. 133. Use the method of components to determine the magnitude and direction of her resultant displacement. In a vector-.addition...

What is a Balance Sheet?

You have been appointed to head financial risk departmental head in an organization. Discuss the importance of risk management in an organization

Note :- First picture is the question and all next are references .. I want full answer for the question not just hints. \begin{tabular}{|c|c|c|c|c|c|c|} \hline...

=+ 5. Do Europeans work more or fewer hours than Americans?

=+1. Answer the following questions about your own experience in the labor force.

=+ a. When you or one of your friends is looking for a part-time job, how many weeks does it typically take? After you fi nd a job, how many weeks does it typically last?