Answer given that mary jane janet and samantha chose

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ANSWER: Given that Mary, Jane, Janet and Samantha chose each other for the fact that they considered the others good students or high achievers, the opportunity cost of slacking, for each of them individually dropped drastically, since they expected the others to be responsible. Given that each of them symmetrically thought the same way, all of them jointly tried to free-ride on the other members’ contribution resulting in no work getting done. However, in the group where everyone knew that the others were slackers, each of them worked hard since they knew that the others might not, resulting in everyone working hard and a better outcome.
72. Shoe-a-holic Cathy started her own line of custom made, hand embellished wedding shoes. She opened up her own shop paid $2500 in fixed licensing fee. She used about $3000 in raw materials and made $3500. At the end of the first month, Carly, her sister looked at her financials and told her that she was losing money and should shut down. Cathy is heartbroken. As an economics guru, what would you advise her to do?
73. Lemonade anyone? Raymond decides to set up a lemonade stand every weekend for the next four weeks to save up for the latest x- men comic. He has to pay his brother Robert $10 as a one-time payment for him to not bully Raymond or drive his customers away. The lemons and sugar cost him $10 (the water is free) and his dad offers to set up his stall for him. He ends up making $15 his first weekend. Frank, his father notices this and advises Raymond to shut down the stall since he is making less than he is spending on the stall. What would you advice Raymond to do?
74. Lemonade anyone? II Raymond decides to set up a lemonade stand every weekend for the next four weeks to save up for the latest x- men comic. He has to pay his brother Robert $10 as a one time payment for him to not bully Raymond or drive
his customers away. The lemons and sugar cost him $10 (the water is free) and his dad offers to set up his stall for him. He ends up making $15 his first weekend. Frank, his father notices this and advises Raymond to shutdown the stall, while Marie his mother advises him not only to set up the stall next weekend but to increase production even more. Raymond is extremely confused. Who do you think he should listen to?

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