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Suppose Marion and Gab Must Both Choose Between Two Jobs,a

Question 104

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Suppose Marion and Gab must both choose between two jobs,a safe job that pays $250/week and a risky job that pays $300/week.The value of safety to each is $75/week.Each also values having a higher income than the other at $75/week.Having the same job (income) as the other means no change in satisfaction.The following payoff matrix shows the income (satisfaction) each would get based on the other decision.  Marion  Gab  Safe Job @ $250  Risky Job @ $300  Safe Job @ $250  Gab: $325  Marion: $325  Gab: $325  Marion: $375  Risky Job @ $300  Gab: $375  Marion: $325  Gab: $300  Marion: $300 \begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Marion }\\\text { Gab }\begin{array}{|l|l|l|}\hline& \text { Safe Job @ \$250 } & \text { Risky Job @ \$300 } \\\hline \text { Safe Job @ \$250 } & \begin{array}{l}\text { Gab: \$325 } \\\text { Marion: \$325 }\end{array} & \text { Gab: \$325 } \\& \text { Marion: \$375 } \\\hline \text { Risky Job @ \$300 } & \begin{array}{l}\text { Gab: \$375 } \\\text { Marion: \$325 }\end{array} & \begin{array}{l}\text { Gab: \$300 } \\\text { Marion: \$300 }\end{array} \\\hline\end{array}\end{array}
Comparing the payoffs when both choose the risky job with the payoffs when both choose the safe job,


A) both would prefer the risky job outcome.
B) both would prefer the safe job outcome.
C) Gab prefers the risky job outcome while Marion prefers the safe job outcome.
D) Marion prefers the risky job outcome while Gab prefers the safe job outcome.

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