Question: Use the Gary Becker criminal decision rule to answer the following 3 questions. Assume an individual with annual income of $50,000 (Yo) is considering

Use the Gary Becker criminal decision rule to answer the following 3

Use the Gary Becker criminal decision rule to answer the following 3 questions. Assume an individual with annual income of $50,000 (Yo) is considering committing a crime with a payoff of $10,000 (G). The individual has a 50% chance of getting caught () and if she does, she will get fined $8,000 (F). What is the individual's current utility? What is the individual's expected utility from committing the crime? Should the individual commit the crime? Why?

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