Kayla is training to be a professional golfer. She needs an excellent set of golf clubs, which cost $2,000. Further, she needs lessons from a golf pro. The pro, Jeff, lives in another state. It will cost Kayla $5,000 in travel expenses to take golf lessons. Jeff charges $50,000 for lessons. Tyler is a golf pro who also works at the same course as Jeff. Tyler charges $60,000 for lessons. Jeff and Tyler are equally skilled in giving golf lessons. (Tyler charges more because he has more years of experience.)

Kayla buys the clubs and spends the money to travel to Jeff. Kayla believes there is a 20 percent chance that Jeff will breach their contract, so Kayla doesnt pay Jeff until she arrives for the lessons. Upon arrival, Jeff tells Kayla that he cant teach her but that Tyler is available for lessons.

For all your answers, make sure to specify the appropriate formula(s).

A.) If Kayla sues Jeff for reliance damages, how much money would this be?

For your answer to B, assume that Kayla decides to hire Tyler and to sue Jeff.

B.) If Kayla sues Jeff for expectation damages, how much money would this be?

For your answers to C and D, assume the following additional information: Both Jeff and Tyler claim that after Kayla takes lessons from either one of them, she has a 10 percent chance to win a $1,000,000 prize from a golf tournament. Therefore, her expected winnings are $100,000. As it turns out, Janel, a wealthy doctor, arrived the day before Kayla and offered Jeff $80,000 for golf lessons. Jeff accepted and backed out of his agreement to teach Kayla.

C.) Was Kaylas reliance optimal?

D.) Was Jeffs breach optimal?