A lawyer has two clients. She charges a yearly retainer plus a separate fee for each consultation. The retainer is a fee each client pays just to secure the services of the lawyer for the following year, and the consultation fee is the price the lawyer charges to do one legal job for the client. The clients' annual demand curves for legal jobs are Client 1: Q₁ =23-P Client 2: Q₂ =20-2P where P is the consultation fee in thousands of dollars for one legal job and Q, is the number of legal jobs done for client i. The lawyer's marginal cost for completing one legal job is 3.1 (also in thousands of dollars). The lawyer wants to determine the fee schedule (retainer and consultation fee) that will maximize her profit. She feels she cannot use a different fee schedule for each client, so she must set one retainer and one consultation fee that apply to both clients. She should charge a consultation fee of $ thousand per legal job. (Enter your response rounded to two decimal places.)

A lawyer has two clients. She charges a yearly retainer plus a separate fee for each consultation. The retainer is a fee each client pays just to secure the services of the lawyer for the following year, and the consultation fee is the price the lawyer charges to do one legal job for the client. The clients' annual demand curves for legal jobs are Client 1: Q₁ =23-P Client 2: Q₂ =20-2P where P is the consultation fee in thousands of dollars for one legal job and Q, is the number of legal jobs done for client i. The lawyer's marginal cost for completing one legal job is 3.1 (also in thousands of dollars). The lawyer wants to determine the fee schedule (retainer and consultation fee) that will maximize her profit. She feels she cannot use a different fee schedule for each client, so she must set one retainer and one consultation fee that apply to both clients. She should charge a consultation fee of $ thousand per legal job. (Enter your response rounded to two decimal places.)

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

Why we need to learn engineering economy?
What are the specific economic decision/calculations that restaurant owners need to make when choosing between investing in new workers vs robots?
Prepare a flow chart for a typical family of 4 (3 drivers), taking a two-week (Monday is 1st-14th is a Sunday) vacation driving from New York to Orlando in August. Your return to workday is 15th of the month which is a Monday. Discuss areas of concerned revealed by the flow chart.
What are the five main types of engineering economic decisions?
What is the unit contribution margin?
AutoSave File Document! Word Chris Navo Home Insert Draw Design Layout References Mailings Review View MathType Help Acrobat Graphs Format Cobb and Douglas used economic data published by the government to obtain Table 2. Year P Year 1899 100 100 DOL 1911 148 216 1900 101 105 107 1912 155 1901 112 110 114 1912 1902 122 117 122 1014 169 152 244 1903 124 122 131 1915 109 156 266 1904 122 121 138 1916 225 183 1905 143 125 149 1917 227 1905 152 124 163 1915 223 201 1907 151 140 170 1919 218 19.08 126 123 485 1920 231 104 407 19.09 155 143 198 1921 179 146 417 1910 159 208 1922 240 161 431 Table 2 Swords et Predictions. The Cobb Douglass formula is P(L, K) = bLa K¹-a Determine monetary value of all the goods produced in 1 year or simply the production level in 1920 for a=.20 and b=1.01. Round to one decimal place.
Typed plz Please provide me a solution stp by step i want quality solution also tske care of plagiarism also
What is diomond water paraodx
can you do part b, c, d and e i can hse 4 questions for it
Q3/ A manufacturing company supplies 24000 units in the first half of the year and the order cost is 300$ per order, the holding cost 60$. Find a. What is the most economical order quantity ? b. How many orders need to be placed ?