Megan sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Megan realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Larry and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Megan knows that if they both work hard, Larry will earn $110 on the beach and Megan will earn $240 at her stand, so they will each take home half of their total revenue: $110+$240 = $175. If Larry shirks, he'll generate only $60 in earnings. Megan does not know that Larry estimates his personal cost (or disutility) of working hard as opposed to shirking at $30. Once out of Megan's sight, Larry faces a dilemma: work hard (put in full effort) or shirk (put in low effort). In terms of Larry's total utility, it is better for him to Taking into account the loss in utility that working hard brings to Larry, Megan and Larry together shirking. better off if Larry works hard instead of Megan knows Larry will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Larry. The most Megan should be willing to pay Carrie supervise Larry, assuming supervision is sufficient to encourage Larry to work ard, It turns out that Megan's friend Carrue is unavilable that day, so Megan cannot find a reliable person to watch Larry. Which of the following arrangements will ensure that Larry works hard without making Megan any worse off than she is when Larry shirks? Pay Larry $20, regardless of how many bottles of water he sells O Make Larry promise to work hard O Allow Larry to keep 57% of the revenue from the bottles of water he sells instead of 50% O Allow Larry to keep 75% of the revenue from the bottles of water he sells instead of 50%

Please explain how to graph this. From the curve of the demand and supply and the factors that affects the graph

Suppose 2 gas stations must post their prices for regular gasoline at 6am each morning and cannot change their price during the day. Each gas station has a choice: charge a relatively “low” price or charge a relatively “high” price.  The following shows their profit for the day of each gas station depending upon which price each gas station chooses:   Gas Station  B     Low Price High Price Gas Station A Low Price $2000, $900 $500, $1500   High Price $1200, $1800 $300, $2100 Assume that this is a "one shot" game: 4. Does this game represent a prisoner’s dilemma situation? Why or why not? 5. If the gas stations can talk the night before making their pricing decision and discuss their pricing strategies, what pricing strategy would each gas station choose the next morning?  Assuming both gas stations act rationally, what will be the outcome of the game?  Explain.

a donut shop charges customers the same price. the profit maximising output is 100 at a price of 5$ per donut. marginal cost is 2$. The donut  shop owner now discovers that it has two very different types of customer children and adults . It can maximise its profits by selling 30 donuts to children for a price of 4$ per donut and 70 donuts per evening to everyone else for a price of 6$ per donut. Draw a diagram showing the profit-maximising price and output a) when all customers are charged the same price and b) when children are charged a different price c)How much profit does the donut shop owner make when children are charged a different price? explain how to draw the diagrams also in detail please!

Suppose 2 gas stations must post their prices for regular gasoline at 6am each morning and cannot change their price during the day. Each gas station has a choice: charge a relatively “low” price or charge a relatively “high” price.  The following shows their profit for the day of each gas station depending upon which price each gas station chooses:   Gas Station  B     Low Price High Price Gas Station A Low Price $2000, $900 $500, $1500   High Price $1200, $1800 $300, $2100 Assume that this is a "one shot" game: Which strategy should Gas Station A choose? Is it a dominant strategy? Explain why or why not. Which strategy should Gas Station B choose? Is it a dominant strategy? Explain why or why not What is the outcome for each Gas Station?  How much profits will each Gas Station earn? Explain. Does this game represent a prisoner’s dilemma situation? Why or why not? If the gas stations can talk the night before making their pricing decision and discuss their pricing…