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Can someone please walk me through parts b through e? 1. The Rational Criminal Burglar Bob, is a rational criminal, and is trying to figure

Can someone please walk me through parts b through e?

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1. The Rational Criminal Burglar Bob, is a rational criminal, and is trying to figure out the amount he is trying to steal, x. Bob has two other partners who provide him with the expertise and equipment to commit a crime, but in exchange Bob must evenly split the amount he steals with these two partners. In addition, if Bob gets caught, he is the only person who will spend time in jail or pay any criminal fines. You are given the following information about the expected punishment for Bob: y(x) =? p(x) =(1/12,000)x f(x)=2x a. Determine Bob's payoff function. Draw a diagram with x on the horizontal axis and $ on the vertical axis. Include the payoff curve, and the expected punishment curve. What optimal amount x*, does Bob decide to steal? b. Determine Bob's payoff, probability of detection, and the criminal fine he would pay if he got caught. c. Regardless of what you found in the previous part, assume that Bob is thinking about getting rid of his partners and going it alone. If Bob decides to do this, he has to pay a fixed costs of SK to buy the equipment and spend the time to plan the burglary. Suppose you actually see Bob trying to commit the crime on his own. Without calculation, determine if Bob would steal more or less [Hint: Start by calculating MB and MC at x* from when Bob has partners as in part (a), and then calculate how MB and MC would change if Bob goes it alone at x*]. d. Assuming that SK = $200, what does Bob decide to do, stick with his partners or go it alone? e. Regardless of what you found in the previous part, assume that Bob is thinking about stealing $2000. If Bob decides to steal an extra dollar, his marginal cost can be broken down into two components. Determine the magnitude of the second component, (df/dx)p, and explain intuitively what this component captures

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