4. We have 72 free units to distribute among 100 agents. Their willingness to pay is p. The function d(p)= 100 -p gives us the number of agents willing to pay p or more. Find the CEEI solution.
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- At the Barbaric Beats Club, members pay a fee of F at the door, and once inside there is a flate rate P for drinks. Each clubber’s willingness to pay for Q drinks is: $16 for the first, $12 for the second, $4 for the third, and zero after that. Making a drink costs the club $8 in ingredients. If the first drink is free, and members will be charged for the second drink, as well as for entry into the club, what is the maximum profit the club can make per member?A. $12B. $16C. $28D. $32We have 72 free units to distribute among 100 agents. Their willingness to pay is p: The function d(p) = 100 p gives us the number of agents willing to pay p or more. Find the CEEI solution.6. Exercise 4.6 An econometrician hired to analyse a local golf course has determined that there are two types of golfers, the regular and the occasional. The annual demand for games from regular players is given by QH = 24 - 0.3P, where P is the price of a round of golf. On the other hand, the annual demand for occasional items is given by Q° = 10 - 0.1P. The marginal cost and the average total cost per item are equal to €20. a) If you could distinguish between regular and casual players, what price would be set for each type? How many games would each type of player play? How much profit could the golf course generate? Represent graphically. b) As an alternative to the discrimination of third degree prices, those in charge consider a double tranche rate according to which the members can play as many games as they wish at a price of € 20 per game. How much profit will the golf course generate if it charges all players the same annual fee for becoming a member of the club? What if you…
- What is a willingness to pay? How does this relate to the concept of demand? When determining the cost of manufacturing a product, what considerations are included in the cost? Provide an example of a product and explain each consideration in relation to your example. When purchasing construction materials for a home renovation, what factors should a homeowner consider? Provide an example of a green building product—a sustainable alternative construction material—and explain each factor in relation to your example. Address how the choice of using this particular green building product might influence and be influenced by supply and demand. What assumptions do economists make? Why does each assumption matter in environmental economics? Is the environment an economic asset? Is the environment a social asset? How does global demand for fish affect marine natural resource economics? How is the supply of forest goods influenced by privately and publicly owned forests? Why has supply and…There are two restaurants next to each other. Restaurant 1 (R1) sells burritos and Restaurant 2 (R2) sells burgers. Both restaurants have to simultaneously set their prices which can be any non-negative 1 real number. Denote by p1 the price of a burrito set by R1 and by p2 the price of a burger set by R2. Since consumers have a choice of which restaurant to go to and are price conscious, the price of each restaurant, besides impacting the demand for its own product, effects the demand for the product of the other restaurant as well. Specifically, the demand functions for the burritos sold by R1 and burgers sold by R2, denoted q1 and q2, respectively, are given by: q1 = 44 − 2p1 + p2 q2 = 44 − 2p2 + p1 (For simplicity, we are assuming here that demand is perfectly divisible). Finally, the cost of producing each unit of burger and burrito is the same and equal to 8. Model this strategic environment as a normal form game and find a pure strategy Nash equilibrium. Is the equilibrium you…what is steve total willingness to pay for five bags?
- A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qp = 150 - 50P, where P is the price of a minute. With Provider A, the cost of an extra minute is With Provider B, the cost of an extra minute is S Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for minutes, and if he used Provider B, he would talk for minutes. This means your friend would pay S for service with Provider A and S for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Note: Yo U will not be graded on an. changeS Vou mako to tha 喜GDamian and Kira trade in antique cars. They typically buy either 1 or 2 cars at any given time, since they are difficult to find and expensive. The price per car P(Q) where Qis the total number of cars traded at a given time, is determined by the demand equation: K P(Q) 1 where K is a positive constant. If a € {1, 2} is Damian's choice and b = {1,2} is Kira's choice, (so Q = (a + b)) it costs Damian 2a to find and prepare a cars for market, and it costs Kira 3b to get b cars ready for market. Damian has better connections and access the cars before Kira, and so Damian chooses his value of a first. Kira then chooses his value of b, knowing Damian's choice. Their choices are determined by maximising their individual profits, ie the difference between how much they can sell their cars for, minus the total costs to prepare them for sale. (i) Express this game as an extensive form game tree, making sure to fully label all the nodes and links, and especially writing down their payoffs. (ii)…The dropdown choices are given it is not fill in the blank. Nick works as a private tutor on evenings and weekends. He has no fixed costs, and his opportunity cost of giving a tutoring session is $25. He has nine potential students each week whose willingness to pay are shown in the following table: Willingness to Pay Student (Dollars per tutoring session) A 40 B 38 с 36 D E F G H I Suppose Nick has to charge a single price to all of his students. Show Transcribed Text 34 32 30 28 5 26 24 For each quantity of tutoring sessions he could give, fill in the Total Revenue column in the following table with the most total revenue he could earn at each quantity of sessions. Then, complete the table by computing the marginal revenue at each quantity of tutoring sessions. Students Willingness to Pay (Sessions per week) (Dollars per tutoring session) 0 1 2 3 4 6 7 8 9 40 38 36 34 32 30 28 26 24 Total Revenue (Dollars per week) 0 40 76 108 136 160 Ć 180 196 208 216 Show Transcribed Text If Nick…
- A friend of yours is considering two cell phone service providers. Provider A charges $110 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation QD=100−20P, where P is the price of a minute. With Provider A, the cost of an extra minute is With Provider B, the cost of an extra minute is Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for ___ minutes, and if he used Provider B, he would talk for ____ minutes. This means your friend would pay___ for service with Provider A and ____ for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Your friend would…Let q be the fraction of cars that are "peaches" and (1-q) be the fraction of cars that are "lemons." The most that a buyer will pay for a lemon is $1,500 and the most a buyerwill pay for a peach is $2,500. The lowest price the owner of a peach will accept is $2,000 and the lowest price that the owner of a lemon will accept is $1,000. What is thehighest percentage of cars for sale that can be lemons if any peaches are going to be offered for sale? Write your answer as an integer, without the % sign. For example, if theanswer is 10%, write "10".A friend of yours is considering two cell phone service providers. Provider A charges $100 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation QD=120−30PQD=120−30P, where PP is the price of a minute. With Provider A, the cost of an extra minute is ? With Provider B, the cost of an extra minute is ? Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for ?? minutes, and if he used Provider B, he would talk for ?? minutes This means your friend would pay for service with Provider A and for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Your friend would obtain in consumer surplus…