Answer:
Dedicate the property for the school.
Explanation:
In this scenario Greater Florida Builders wants to build a 450-acre housing development. But before getting approval to commence the project the local zoning commission requires the Greater Florida Builders to dedicate a property to the school before it agrees to their proposal.
Local zoning commissions are locally elected government board that recommends to the city council the boundaries of various housing projects and ensuring these boundaries are enforced.
They also apply measures that segregates business property from residential property.
Greater Florida Builders has been required to dedicate a portion of their land for a new school. Dedication is a legal term used in real estate development implying a voluntary offering of land for public use.
In the scenario, Greater Florida Builders has been required to engage in a process commonly referred to as dedication. Dedication is a legal term used in real estate development, where a property owner voluntarily gives the right of a specific proportion of land to the government for public use. In this case, the zoning commission has required Greater Florida Builders to dedicate a portion of their acreage for the construction of a new school within the housing development.
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Therefore, if you bid 0.5, you can expect to win the company with probability 0.5 and pay 0.5 for it, for an expected value of 0.375. This is the maximum expected value you can achieve.
To maximize your profit, you should bid the expected value of v, which is 0.5. This is because, if you bid higher than the expectedvalue, the probability of winning the company will decrease, and if you bid lower, the probability of winning will increase, but the value of the company will be lower.
Here's how to calculate the expected value:
The probability of winning the company is given by the probability that v is less than b. Since v is uniformly distributed between 0 and 1, the probability that v is less than b is simply b.
The expected value of the company is given by the probability of winning the company multiplied by the value of the company if you win. Since the value of the company if you win is 1.5 * v, the expected value is given by:
Expected value = b * (1.5 * v)
Substituting the value of b = 0.5, we get:
Expected value = 0.5 * (1.5 * 0.5)
= 0.5 * 0.75
= 0.375
Learn more about bid, here brainly.com/question/15188087
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Answer:
B) Tammy specialized in singing and Bob in plowing.
Explanation:
Tammy has an absolute advantage at singing because she is simply absolutely better at singing than her husband. She also has a comparative advantage at plowing because she plows better than him, but he can still do some plowing. Therefore, Tammy should specialize in the task that she has an absolute advantage and generates a larger revenue, while her husband should specialize in plowing even though he is not very good at it. By specializing in plowing, Tammy's husband might end up doing it as good as her.