1. What does the title of the chapter Perpetrators and Victims, have to do with the work of Ronald Coase?
2. For a. and b. below, please analyze the relationship between the time you spend studying and the grade you receive in a course. Use a production function model to make your analysis. Be sure to include a diagrammatic model in your analysis.
a. Graph average product and marginal product, with grade (as output) on the vertical axis and hours of study time on the horizontal axis. Describe what you think average product and marginal product would look like. Provide an interpretation for the point where MP = AP in terms of study time and the resulting grade.
b. Would you maximize your grade by studying long enough so that MP is maximized, so that AP is maximized, or some other point on the production function. Explain.