N false false false en-us x-none x-none , Ask an Expert

Economics

Suppose a student has no more than t minutes to write an examination consisting of two questions, 1 and 2. He receives A points if he gets question 1 correct and B points if he gets question 2 correct. He knows that if he spends s minutes in question 1 (assume he uses up all his time), then

1) the probability that he gets it correct is p(s)

2) the probability that he gets the second one correct is q(t-s).

Both p( ) and q( ) are strictly increasing and concave functions. In addition, assume there is no partial credit, and the student receives constant marginal utility for additional points.

(Question a) Derive the equilibrium conditions for his optimal allocation of time between the two questions.

(Question b) How is his allocation a acted by a change in A or B?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91229851

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question some critics of discretionary monetary policies

Question: Some critics of discretionary monetary policies used by central banks suggest that there are lag problems in the timing of monetary policy, and there are problems with time inconsistencies, credibility and comm ...

Question a manufacturer of laptop computers operates a

Question: A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of his models is expected to sell 390,000 units in the coming year. How large should each product lot b ...

Fran has a monthly income of 60 she spends her money making

Fran has a monthly income of $60. She spends her money making telephone calls (measured in minutes) at a price px and on other composite good y, whose price has been normalized to one, i.e., py = $1. Her mobile phone com ...

Question you work as a researcher at an active equity fund

Question: You work as a researcher at an active equity fund. Your supervisor makes the following statement to you. "Eugene Fama and Robert Shiller won the Nobel Prize in Economics in 2013. Their views on market efficienc ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question does money has opportunity costs and if so why

Question: Does money has opportunity costs? And if so why still people hold money?How can we determine monetary demand in respect to income? The response must be typed, single spaced, must be in times new roman font (siz ...

Question if a bank has reserves of 35 million and demand

Question: If a bank has reserves of $35 million and demand deposits of $300 million, how much are the bank's (a) required reserves? (b) excess reserves? The response must be typed, single spaced, must be in times new rom ...

Question 1vertical integration and franchising fees suppose

Question: 1.Vertical Integration and Franchising Fees. Suppose an upstreammanufacturer sells a product A which he can produce for a marginal cost of4 dollars to two downstream distributors who compete in a Cournot game.T ...

Question steven has been your best friend since grade

Question: Steven has been your best friend since grade school. You have decided to quit your jobs and start up a bakery together since you both love bread. He insists he wants to start the business as a partnership. You ...

Question suppose you have 5000 in savings when the price

Question: Suppose you have $5,000 in savings when the price level index is at 100. (a) If inflation pushes the price level up by 10 percent, what will be the real value of your savings? (b) What is the real value of your ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert