Chapter 8.4, Problem 8.29E

2. Many municipalities offer a variety of fare options for public transportation. This allows high use travelers a choice to pay a lower fare as a benefit of being a high user. The Transit Co. of Blue City, TX has three separate monthly bus fare options to choose from. The first is a standard “per ride" fare of $1.25 per ride. The second allows the rider to purchase a discount card. The cardholder pays $21 at the start of the month plus a fee of S0.50 per ride. Option 3 is a flat fee option where the rider pays $40 for thee month and may ride any bus at no additional cost during the month. Define the variable x to be the number of rides you take each month. Express each option as a function of x. Graph all three functions on the same set of axes. What is the break even number of rides between the options? If you only take 10 rides a month what option should you choose? If you take 40 rides a month what option should you choose? Watch the video posted in the Capstone #1 area involving…

8. The labor union and management of a particular company have been negotiating a new labor contract. However, negotiations have now come to an impasse, with management making a “final" offer of a wage increase of $1.10 per hour and the union making a “final” demand of a $1.60 per hour increase. Therefore, both sides have agreed to let an impartial arbitrator set the wage increase somewhere between $1.10 and $1.60 per hour (inclusively). The arbitrator has asked each side to submit to her a confidential proposal for a fair and economically reasonable wage increase (rounded to the nearest dime). From past experience, both sides know that this arbitrator normally accepts the proposal of the side that gives the most from its final figure. If neither side changes its final figure, or if they both give in the same amount, then the arbitrator normally compromises halfway between ($1.35 in this case). Each side now needs to determine what wage increase to propose for its own maximum…

Consider the following bargaining problem: Two siblings Naa and Nii have to have Gh20 million they inherited from their parents between them. Naa gets to make an initial offer. Nii then gets to respond by either accepting Naa's initial offer or offering a counter offer. Finally, Naa can respond by either accepting Nii's offer or making a final offer. If Nii does not accept Naa's final offer both Nii and Naa get nothing. Nii discounts the future at 10% (i.e., future earnings are with 10% less than current earnings) while Naa discounts the future at 20%. Calculate the Nash equilibrium of this bargaining problem.

Oranges are grown, picked and then stored in warehouses in Tampa, Miami, and Fresno. Theses warehouses supply oranges to markets in New York, Philadelphia, Chicago, and Boston. The following table shows the shipping costs per truckload (in hundreds of dollars), supply, and demand. Because of an agreement between distributors, shipments are prohibited from Miami to Chicago This kind of problem is called as … (Fill in the blank, write the correct answer)

Franklin Joiner, director of health, education, and welfare, had just left a meeting with the state's newly elected governor and several of the other recently appointed department heads. One of the governor's campaign promises was to try to halt the rising cost of the state's entitlement program. In several speeches, the governor indicated the state of Idaho should allocate funds only to those individuals ranked in the bottom 10% of the state's income distribution. Now the governor wants to know how much one could earn before being disqualified from the program and he also wants to know the range of incomes for the middle 95% of the state's income distribution. Frank had mentioned in the meeting that he thought the incomes in the state could be approximated by a normal distribution and the mean per capita income was about $33,000 with a standard deviation of nearly $9,000. Calculate the income that cut off the bottom 10% of incomes and the middle 95% of incomes.   Assuming that…

In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized.  (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray. Three methods were considered—the straight-line method (S), the declining balance method (D), and a combination of D & S (sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms.  Depreciation         Methods France Germany UK Total A. Straight line (S) 15 0 25 40 B. Declining Bal (D) 1 1 1 3 C. (D & S) 10…

In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized.  (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray. Three methods were considered—the straight-line method (S), the declining balance method (D), and a combination of D & S(sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms.  Depreciation         Methods France Germany UK Total A. Straight line (S) 15 0 25 40 B. Declining Bal (D) 1 1 1 3 C. (D & S) 10 25…

In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized.  (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray. Three methods were considered—the straight-line method (S), the declining balance method (D), and a combination of D & S(sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms.  Depreciation         Methods France Germany UK Total A. Straight line (S) 15 0 25 40 B. Declining Bal (D) 1 1 1 3 C. (D & S) 10 25…

Texas is home to more than one million undocumented immigrants, and most of them are stuck in low-paying jobs. Meanwhile, the state also suffers from a lack of skilled workers. The Texas Workforce Commission estimates that 133,000 jobs are currently unfilled, many because employers cannot find qualified applicants (The Boston Globe, September 29, 2011). Texas was the first state to pass a law that allows children of undocumented immigrants to pay in-state college tuition rates if they have lived in Texas for three years and plan to become permanent residents. The law passed easily back in 2001 because most legislators believed that producing college graduates and keeping them in Texas benefits the business community. In addition, since college graduates earn more money, they also provide the state with more revenue. Carol Capaldo wishes to estimate the mean hourly wage of workers with various levels of education. She collects a sample of the hourly wages (in $) of 30 workers with a…