Question
1. In Avataria the main source of income is hunting. Avatarians have an option to improve their hunting skills by training with the best
1. In Avataria the main source of income is hunting. Avatarians have an option to improve their hunting skills by training with the best hunters. The following table describes the returns from training: Return per year of training First 3 years of training 20% Next 2 years of training 15% Next 2 years of training 10% Next 3 years of training 5% (a) Assume there are 100 people in Avataria, and each Avatarian with no training can catch 1 turkey per month. One third of Avatarians has 6 years of training, while the other two thirds have 9 years of training. What is the total number of turkeys caught by Avatarians per month? What share of these turkeys is caught as a result of raw skills and what share is caught because of human (hunting) capital gained through training? (Remark. The number of turkeys doesn't have to be whole).
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