Assume that an economic study of property crime estimated utility functions for lawful income and from property crime.

4. Assume that an economic study of property crime estimated utility functions for lawful income and from property crime. Lawful utility = vlawful income (in utils), compared to utility from crime (successful or failed) = vnet income (in utils), where net income from successful crime is the sum of lawful income plus the loot from the crime, and net income from a failed crime is lawful income minus prison cost. Prison cost is the prison time multiplied by the lawful income that would have been earned outside of prison. Consider the policy option below for a potential criminal with lawful income of $100, potential loot of $125, a probability of imprisonment of 0.50, and a prison term of 0.51 units of time. A. Fill in the blanks of the table below. Policy Option |Baseline Lawful income ($) 100 100 Loot ($) 125 44 Probability of prison 0.50 0.50 Prison time 0.51 0.36 Lawful utility 10 Utility from successful crime Net income 144 Utility 12 Utility from failed crime Prison cost 36 Net income 64 Utility 8 Expected utility from crime (utils) 10 B. How do the values for the Policy Option above compare to the Baseline in the table in terms of loot, prison time, and expected utility from crime? What will be the likely effect of the Policy Option on (rational) property crime? Explain with evidence from the table