Sean is a community college student and has been saving his tips from his job waiting tables at a restaurant for months to see Hamilton. He is willing to pay $705 for a ticket. Anca has seen Hamilton five times already, but wants to see it again before heading to Europe for a month. She is willing to pay $1,250 for a ticket. There is one ticket left, and the seller is charging $700. Does Sean or Anca buying the ticket lead to a more economically efficient outcome?

You have been texting with your friends trying to make plans for this evening. Your best friend Jocelyn is not sure if she will finish her homework in time to come out, but if she does, she wants to go to a new restaurant on the north end of town that you've both been wanting to try. Another group of friends is going to a restaurant on the south end of town, but you've already been to this restaurant and it was only okay. Overall, you would prefer to go to the restaurant with Jocelyn. But if Jocelyn isn't coming out, you would rather hang out with your friends than stay home. No one is returning your calls, but you need to get on the subway and head into town if you want to do anything this evening. You have to decide whether to head north or south. What can we say about a potential dominant strategy in this game? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect…

In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you forecast that you will be able to sell only 10,000 room-nights, which cost $80 per room per night to service. You spent $25.00 million on the hotel in 2008, and your cost of capital is 10%. The current going price to sell the hotel is $20 million. If the estimated demand is 10,000 room-nights, the break-even price is:__?____per room, per night. (Hint: Remember that the cost of capital is the opportunity cost, or true cost, of making an investment.)

A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price, that bidder pays the reserve price. An auctioneer faces two bidders, each with a value of either $39 or $104, with both values equally probable. Without a reserve price, the second highest bid will be the price paid by the winning bidder. The following table lists the four possible combinations of bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder with and without the stated reserve price. Bidder 1 Value Bidder 2 Value Probability Price Without Reserve? Price with $104 Reserve Price? ($) ($) ($) $39 $39 0.25           $39 $104 0.25           $104 $39 0.25           $104 $104 0.25             Without a reserve price, the expected price is…