Asked by Jeanette Retana on Apr 25, 2024

​If the apartment owner can somehow see the effort of the each of the room mates and punishes with a loss of 5 to any room mate who doesn't clean,is that likely to lead to a more efficient outcome?

A) ​No because they would have to clean against their will
B) Yes because now they would both get a utility of 3
C) No because neither of them like cleaning
D) ​No because filth is good

Efficient Outcome

A situation in economics in which resources are allocated in the most effective manner, maximizing the potential benefit to an economy or market without wasting resources.

Utility

In economics, a measure of satisfaction or happiness that consumers get from consuming goods or services.

Apartment Owner

An individual or entity that holds the title to a residential unit in a building.

  • Exhibit comprehension of efficiency and the optimal results in game scenarios.
  • Clarify the influence of deterrents and incentives on the development of strategies and establishment of equilibria.