Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 2, Problem 7P
To determine
Verification of the existence of a causal link between people showing up in parties and the food that is served at the same party.
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QUESTION 10
YouTube generates revenue by showing ads to consumers who watch videos on its website. Suppose that, for each person watching a video, YouTube receives one
dollar in ad revenues (P=1).
Arthur is a professional video-game player. He plays the video-game "Fortnite" and uploads his video to YouTube. The number of people who will watch his video
depends on Arthur's effort producing the video and increasing its quality. The number Q of viewers as a function of Arthur's effort "e" is given by the function Q= Be.
Arthur's offort cost is 202.
His utility equals his income minus ys effort cost.
To give incentives to Arthur to create better videos and attract more viewers, YouTube decides to pay Arthur a bonus b for each person watching his video.
YouTube also has an operational cost
30
Operational cost -
32
which is the cost of maintaining its internet servers and administrative staff. YouTube's profit equals the ad revenue minus the payment to Arthur and the operational
cost. Find…
Chapter 2 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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