P1 3. Assume that the islanders of Bora Bora drink beer, which is sold only in bars that belongto a bartenders' cartel. The marginal cost of a glass of beer is $1.00, and there are nofixed costs. There are 20,000 islanders, each of whom have the following individualinverse demand curve for beer every Saturday night (the only time the islanders drinkbeer):P = 10-0.5QDa. The beer cartel sets specific quantities of beer to be sold Saturday night.Everyone knows that any bartender who sells more than the cartel-determinedquantity of beer gets fed to the sharks. Explain how this threat actually makesbartenders better off.b. What beer price will maximize the collective profits of the cartel members?c.Suppose a bartender comes up with the alternative idea of selling patrons anightly "drinking license" that would have to be paid upon entering a bar. Howmuch could each of the bartenders charge such a license if they left the per-glass beer price at the previous, collusive level? How much profit would thecartel make?d. If instead bartenders set the license fee and the beer price together so as tomaximize profits, how much will they charge for the license and for a glass ofbeer, and how much profit will the cartel make?

P=10-0.5QdThere are 20,000 islandersMC=1 per glassThere is no fixed cost

3. Assume that the islanders of Bora Bora drink beer, which is sold only in bars that belong to a bartenders' cartel. The marginal cost of a glass of beer is $1.00, and there are no fixed costs. There are 20,000 islanders, each of whom have the following individual inverse demand curve for beer every Saturday night (the only time the islanders drink beer): P= 10-0.5QD

3. Assume that the islanders of Bora Bora drink beer, which is sold only in bars that belong to a bartenders' cartel. The marginal cost of a glass of beer is $1.00, and there are no fixed costs. There are 20,000 islanders, each of whom have the following individual inverse demand curve for beer every Saturday night (the only time the islanders drink beer): P= 10-0.5QD

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Jean deposited P2,000, P2,500 and P3,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.13 per annum. Determine the future worth of the deposit? Note: Interest is already shown in decimal form. Do not round in between solution. No need to put UOM and comma. Final answer round to the nearest WHOLE NUMBER.
T o p i c : I n t r o d u c t i o n t o F i n a n c i a l M a r k e t s W h a t r o l e d o f i n a n c i a l m a r k e t s p l a y i n o u r e c o n o m y ? W h a t a r e p r i m a r y a n d s e c o n d a r y m a r k e t s ? W h a t r e l a t i o n s h i p e x i s t s b e t w e e n f i n a n c i a l i n s t i t u t i o n s a n d f i n a n c i a l m a r k e t s ? W h a t i s t h e m o n e y m a r k e t ? W h a t i s t h e E u r o c u r r e n c y m a r k e t ? W h a t i s t h e c a p i t a l m a r k e t ? W h a t a r e t h e p r i m a r y s e c u r i t i e s t r a d e d i n i t ?
Gina has an opportunity to save $260 per month at an APR of 6.35% in a 401K plan through work. She plans to retire in 25 years. The income taxes are at 35% for her. (1) What are Gina's tax savings over the course of her investment? Review your course materials for help with this calculation. (Express your answer rounded correctly to the nearest cent!) 2$ Ikyou haven't answered the question correctly in 3 attempts, you can get a hint. Hint:
Suppose the MXN (spot) devalued by 15%, the hotel room in Mexico would now sell for __________Mexican Pesos which would equal ___________US dollars. $1=20.1212 MXN (spot) 1/20.1212= > 1 MXN= 0.0497 $
As Financial Manager what would be your decision on assets and investment matters to meet profit maximization? Choose the best answer. 1. A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs P35,000 and is expected to provide earnings over three years as described below. Based on the profit- maximization goal, the financial manager would choose ASSET YEAR YEAR 1 2 1 21,000 15,000 6,000 2 9,000 15,000 21,000 3 3,000 20,000 19,000 4 6,000 12,000 12,000 А. Asset 1 В. Asset 2 C. Asset 3 D. Asset 4 Why the financial manager should maximize their wealth? How would they prove that there was a transaction so that the demander will be able to repay the supplier on time and at the right amount? Do you think using those financial institutions would help the company to grow
Gabe purchases a $500 bond that has 6 remaining semi-annual 6% coupon payments for $450. What would be his return per half year period? Round entry to 1 decimal place. The tolerance is ±0.4.
What is the present value or price of a $150 annual perpetuity if the returns on similar contracts are now 7%?
Calculate the post office saving deposit excluding national saving certificate If M4 is $33,000 and M3 is $16500
Joey is one of several winners who shared a lottery ticket. There are three plans offered to receive the after-tax proceeds. Plan 1: $100,000 now Plan 2: $15,000 per year for 8 years beginning 1 year from now. Total is $120,000. Plan 3: $45,000 now, another $45,000 four years from now, and a final $45,000 eight years from now. Total is $135,000. Joey, a quite conservative person financially, plans to invest all of the proceeds as he receives them. He expects to make a real return of 6% per year. Use the 8-year time frame and an average inflation of 4% per year to determine which plan provides the best deal.
Discuss the difference between an entreprenuer and non entreprenuer