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4 weeks ago
Table 7.1
Draw  Ball #1Draw    Ball # 2Draw Ball #3Expected benefit
Monetary benefit ($)     0      0   750
Dopamine benefit (utils)     0     40    50
The Table represents the payoffs for a gambling game. The player blindly draws one of three balls, marked 1, 2, and 3, from an urn. The cost to play the game is $375 per draw.


Refer to the Table. Calculate the expected monetary benefit and the expected dopamine benefit from the game represented in the table.
Textbook 
Microeconomics: Principles, Applications, and Tools
Edition: 8th
Authors:
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Posts: 260
4 weeks ago
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Expected monetary benefit = 1/3 x $750 = $250.
Expected dopamine benefit = (1/3 x 0) + (1/3 x 40) + (1/3 x 50) = 30 utils.
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