Options for 8:

a. 10 -- 20-- 15

b. 10 hours, none, 15 hours, 20 hours

c. 15 hours, 20 hours, 10 hours, none

Peter and Paul fish on a lake and sell the fish to the local fish mart. The more time they spend fishing, the more revenue they make from selling fish. The problem is that as more fish are caught, it becomes more difficult to catch fish. The following table shows the hourly fish earnings for different total times spent fishing. Total Time Fishing (total hours of the two fishermen combined) Hourly Fish Earnings ($ earned per hour of fishing by each fisherman) 20 $45 25 $37 30 $30 35 $27 40 $2: To catch fish, each fisherman must rent his own boat, which costs $10 per hour. Each fisherman can choose whether to spend 10, 15 or 20 hours fishing on the lake. Each fisherman's payoff is the total profits they earn: MT | = (hours the individual fished)x(Earnings per hour - boat rental cost per hour) Note that the fish earnings per hour is determined by the total of both fishermen's combine Page 1 's fishing. For example, if Paul chooses 20 hours and Peter chooses 10 hours, the total hours is 30, so each boat earns $30 per hour of fish. Paul would earn a profit = 20x(30 - 10) = 400 and Peter would earn a profit = 10x(30-10) = 200. The partially completed Strategic Grid is Peter 15 hours 10 hours 20 hours 10 hours 350,350 270, Y 200,400 Paul 15 hours Y,270 300,300 255, x 20 400,200 X,255 Z, Z hours Values for X, Y, Z are missing... Question 5 What is the value of "X" in the strategic grid? Question 6 What is the value of "Y" in the strategic grid? Question 7 What is the value of "Z" in the strategic grid? Question 8 If Peter spends 10 hours fishing, how much time will Paul spend fishing? [ Select ] What is Peter's Dominant Strategy? (Select ] What is Paul's Dominant Strategy? [Select] Peter and Paul fish on a lake and sell the fish to the local fish mart. The more time they spend fishing, the more revenue they make from selling fish. The problem is that as more fish are caught, it becomes more difficult to catch fish. The following table shows the hourly fish earnings for different total times spent fishing. Total Time Fishing (total hours of the two fishermen combined) Hourly Fish Earnings ($ earned per hour of fishing by each fisherman) 20 $45 25 $37 30 $30 35 $27 40 $2: To catch fish, each fisherman must rent his own boat, which costs $10 per hour. Each fisherman can choose whether to spend 10, 15 or 20 hours fishing on the lake. Each fisherman's payoff is the total profits they earn: MT | = (hours the individual fished)x(Earnings per hour - boat rental cost per hour) Note that the fish earnings per hour is determined by the total of both fishermen's combine Page 1 's fishing. For example, if Paul chooses 20 hours and Peter chooses 10 hours, the total hours is 30, so each boat earns $30 per hour of fish. Paul would earn a profit = 20x(30 - 10) = 400 and Peter would earn a profit = 10x(30-10) = 200. The partially completed Strategic Grid is Peter 15 hours 10 hours 20 hours 10 hours 350,350 270, Y 200,400 Paul 15 hours Y,270 300,300 255, x 20 400,200 X,255 Z, Z hours Values for X, Y, Z are missing... Question 5 What is the value of "X" in the strategic grid? Question 6 What is the value of "Y" in the strategic grid? Question 7 What is the value of "Z" in the strategic grid? Question 8 If Peter spends 10 hours fishing, how much time will Paul spend fishing? [ Select ] What is Peter's Dominant Strategy? (Select ] What is Paul's Dominant Strategy? [Select]