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Suppose a thief stole a car that he can resell for $10,000. The thief spent $100 on tools in preparation for his act. During


Suppose a thief stole a car that he can resell for $10,000. The thief spent $100 on tools in preparation for his act. During the day the thief works as a laborer and earns $20,000/year. The thief understands that the probability of being caught and convicted is 10%, in which case he will spend one year in prison. Compute net benefits of this crime for the thief (benefits minus costs).

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