Typed plzzz... Asap Fred wants to hire Barney to manage his retail store. Barney can apply a high level ofeffort (at a cost to him of $30), a medium level of effort (at a cost to him of $10), or alow level of effort (at a cost to him of $0). Fred's profits depend not only on the levelof Barney's effort but also on the state of consumer demand. Fred believes thatdemand will be high with probability 50 percent (and therefore demand will be lowwith probability 50 percent). Fred has determined the following possible profit levels(before paying Barney) will occur depending on Barney's effort and the state ofconsumer demand:effortDemandlowlow20medium 40high 80Of the choices below, what is the largest percentage range of profit provided toBarney that would ensure Barney would supply high effort?any percent greater than 50.00 percent (1/2).any percent greater than 75.00 percent (3/4).any percent greater than 66.66 percent (2/3).high4080100any percent greater than 83.33 percent (5/6).

p=0.5 1-p=0.5 Expected revenue low(demand) high(demand) Cost associated with Profit…

Answered: effort low medium high Demand low 20 40…

Business

Economics

effort low medium high Demand low 20 40 80 high 40 80 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In Autarka there are 9600 people who like to visit an amusement park. Each of theseconsumers wants to visit one park once. The consumers' homes are evenly spaced acrossthe island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Derive an expression for the location of the indifferent consumer. Use PA to represent the price of admission at Alfonso's Wonderland, and PB to represent the price of admission at Bernice's Wild Rides.
In Autarka there are 9600 people who like to visit an amusement park. Each of theseconsumers wants to visit one park once. The consumers' homes are evenly spaced acrossthe island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Find the profit function for Bernice's Wild Rides. Assuming that Bernice's marginal cost is $12.
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