Damian and Kira trade in antique cars. They typically buy either 1 or 2 cars at any given time, since they are difficult to find and expensive. The price per car P(Q) where Qis the total number of cars traded at a given time, is determined by the demand equation:
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- Damian and Kira trade in antique cars. They typically buy either 1 or 2 cars at any given time, since they are difficult to find and expensive. The price per car P(Q) where Qis the total number of cars traded at a given time, is determined by the demand equation: K P(Q) 1 where K is a positive constant. If a € {1, 2} is Damian's choice and b = {1,2} is Kira's choice, (so Q = (a + b)) it costs Damian 2a to find and prepare a cars for market, and it costs Kira 3b to get b cars ready for market. Damian has better connections and access the cars before Kira, and so Damian chooses his value of a first. Kira then chooses his value of b, knowing Damian's choice. Their choices are determined by maximising their individual profits, ie the difference between how much they can sell their cars for, minus the total costs to prepare them for sale. (i) Express this game as an extensive form game tree, making sure to fully label all the nodes and links, and especially writing down their payoffs. (ii)…Marina decides to purchase a ring made from an alloy composed exclusively of gold (G) and titanium (T). The price of gold is $60 per gram, and the price of titanium is $30 per gram. Her total budget for the ring is $600. Her utility function is given by U(G,T)=GT. Suppose the price of titanium falls to $20 per gram. At the decomposition basket, the optimal amount of gold is grams (keep 2 decimal places ONLY).The utility function for commuting is u(w, t, c) = –11 · w – 3 · t – 15 · c, where w is walking time (in minutes), t is total travel time (in minutes), and c is cost (in £). How much is a typical consumer willing to pay to reduce total travel time by an hour? Enter your numerical answer in the box provided (round your answer to 1 decimal place):
- You must allocate the 70,000 seats in Reliant Stadium (in Houston) among Texan (Houston) and Cowboy (Dallas) fans for an upcoming game between the two footfall teams. You can set different prices for seats in the Dallas and Houston sections of the stadium. Suppose you can obtain $40/ticket from Houston fans irrespective of the number of seats you allocate to Houston fans. You must drop price in order to sell more tickets to Dallas fans, however. Let Q be the number of tickets you allocate to Dallas fans. Assume that the maximum price you can charge for these tickets is given by the following inverse demand function P= 80 500 (a) Express the total revenue (on all 70,000 seats) from ticket sales as a function of Q; (b) Derive the first-order condition of the revenue-maximizing problem (it's a function about Q); (c) What is the optimal number of seats allocated to Dallas fans?If your annual demand for renting videos is P = 7.5 - 2.7Q, If purchasing an membership guarantees that you can rent as movies as you like for $ 0.14 per video. How many movies will you rent per year? 2.72 What is the most that you will pay the for the annual membership? $ 3.8Every month, a family of three spends $2,000 on food (F) and other items (O). The family’s preferences are represented by the utility function U(F,O) = F1/5O4/5. The unit price of food and the unit price of other items are both Suppose the club did NOT charge a membership fee: how much money would the family spend on food? How much food would the family buy? (
- Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sneakers she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $124 for the sneakers: Store Travel Time Each Way Price of a Sneakers (Minutes) (Dollars per sneakers) Local Shoe Store 15 124 Different Neighborhood in Town 30 103 Rural Outlet 60 70 Ciana earns an hourly wage of $30 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $30 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question…A person's utility function is given by U(x, y, z) = 7xyz, where x, y, z denote then number of units of three commodities X,Y, and Z that the person consumes. The pricesr per unit of X,Y, and Z are 5 euro, 1 euro, and 3 euro respectively. If ther person has a budget of 270 euro, the person's utility is maximised when they consume units of X, units of Y, and units of Z. The person's maximum utility is If the person's budget is increased to 271 euro, then using the method of lagrange multipliers we find that the maximum utility is approximatelySuppose the National Football League (NFL) wants to make Super Bowl tickets affordable for more football fans. The league therefore sets the price of a Super Bowl ticket below what is generally considered a fair market price. Suppose the price of a ticket for a regular seat at the Super Bowl is set at just $500. People who have tickets, however, can turn resell them online for $2,500 each, or more. If there are no transaction costs associated with online sales of Super Bowl tickets, the true cost to a fan of attending the Super Bowl is: O at least $2,500. O the monetary price paid to obtain the ticket. at most $500. $2,000 less than the opportunity cost of a ticket.
- Suppose the National Football League (NFL) wants to make Super Bowl tickets affordable for more football fans. The league therefore sets the price of a Super Bowl ticket below what is generally considered a fair market price. Suppose the price of a ticket for a regular seat at the Super Bowl is set at just $500. People who have tickets, however, can turn resell them online for $2,500 each, or more. If there are no transaction costs associated with online sales of Super Bowl tickets, the true cost to a fan of attending the Super Bowl is:Marina decides to purchase a ring made from an alloy composed exclusively of gold (G) and titanium (T). The price of gold is $60 per gram, and the price of titanium is $30 per gram. Her total budget for the ring is $600. Her utility function is given by U(G,T) =GT. Suppose the price of titanium falls to $20 per gram. At the final basket, the optimal amount of titanium is()grams.Jane receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by the utility function U(D,F) = 10DF. In addition, the price of a day spent traveling domestically is $100, the price of a day spent traveling in a foreign country is $400, and Jane’s annual travel budget is $4000. Suppose F is on the horizontal axis and D is on the vertical axis. Jane's marginal rate of substitution between F and D is equal to 10 1 F/D D/F