A village owns a common pasture where villagers graze their sheep. The cost to a sheep owner of owning and caring for the sheep is $3. The total revenue from all sheep on the common pasture is TR(s) = (23-s)s, where s is the number of sheep on the pasture. The local government notices that total profits from the pasture are not maximized if the villagers are allowed to pasture their sheep for free. The government decides to allow a sheep to use the common pasture only if its owner buys a sheep license for a price of $t. To maximize total profits (of villagers and the government) how many licenses should the government sell and how much should each license cost?

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

hi noah!

the first time you break a rule, you get a warning.

if you continue to break rules you get kicked out for a certain amount of time.

so, to answer your question 1.

hope this buddy!

- courtney