(ou are the CEO of a brand-new dating app (BNDA). The number of users (i.e. total quantity demanded) for BNDA is: n = 1200 – p + ynº where y e (0,1), nº is the expected network size, p is the price. ) Interpret the parameter y. What strategies can you use for a company like BNDA to increase the value of y? (* >) Assume per user is 0. What is the profit maximising price? 0.4 and the users accurately anticipate nº so that n = nº, and the marginal cost :)Suppose BnDA have an investment opportunity to acquire a start-up that can increase the parameter y from 0.4 to 0.9. What is the maximum amount BNDA should be willing to pay for this acquisition? (:
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Please all solve the question
![You are the CEO of a brand-new dating app (BNDA). The number of users (i.e. total quantity
demanded) for BNDA is:
n = 1200 – p +ynº where y E (0,1), nº is the expected network size,p is the price.
a) Interpret the parameter y. What strategies can you use for a company like BNDA to increase
the value of y? (·
0.4 and the users accurately anticipate nº so that n = nº, and the marginal cost
b) Assume y
per user is 0. What is the profit maximising price?
c) Suppose BnDA have an investment opportunity to acquire a start-up that can increase the
parameter y from 0.4 to 0.9. What is the maximum amount BNDA should be willing to pay for
this acquisition? (*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6792314a-4325-4a9d-82d4-27b595a6409e%2Fe39ceb07-7d9f-4a3a-b30e-03b8e0467c0e%2Fulx3xi_processed.png&w=3840&q=75)
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- 5. Shift-in-charge Nazar Al Rushdy: Nazar is pessimistic about the market price. What is your guidance for Nazar? The decision to employ decision trees in crucial situations has been taken by Salem Al Harthi, the plant manager. The table below presents data on demand for a duration of 6 hours along with their respective probabilities. The first row of the table provides the probability of demand for the initial three hours when a leak occurs, denoted in parentheses. Subsequently, the following three rows indicate the probabilities of high, medium, and low demand for the succeeding three hours. To illustrate, if the initial 3-hour market price was low, the probabilities of high demand, medium demand, and low demand in the next three hours are 0.2, 0.3, and 0.5, respectively. Market price High Market price Medium Initial 3-hrs (0.2) Initial 3-hrs (0.5) Market price Low Initial 3-hrs (0.3) High demand (next (0.5) (0.4) (0.2) 3 hrs) Medium demand (0.3) (0.2) (0.3) (next 3 hours) Low demand…Dataware is trying to determine whether to give a $10 rebate, cut the price $6, or have no price change on a software product. Currently, 40,000 units of the product are sold each week for $45 apiece. The variable cost ofthe product is $5. The most likely case appears to bethat a $10 rebate will increase sales 30%, and half of all people will claim the rebate. For the price cut, the most likely case is that sales will increase 20%.a. Given all other assumptions, what increase in sales from the rebate would make the rebate and price cut equally desirable?b. Dataware does not really know the increase in sales that will result from a rebate or price cut. However, the company is sure that the rebate will increase sales by between 15% and 40% and that the pricecut will increase sales by between 10% and 30%.Perform a sensitivity analysis that could be used to help determine Dataware’s best decision.Answer all questions, show all working. Marta and Sara are two students that devote part of their free time to doing surveys for a market research company. The income obtained from this activity depends on the number of surveys they do, bearing in mind that the girls may freely choose the interviewees. As they both live in the same neighborhood in case, they just interview their neighbors (N), they compete for the same people and their monthly income is about 250 Euros. If they both choose to go to other neighborhoods of the city and interview strangers (S), they can carry out more surveys and both their incomes would be 400. If one of them decides to go and interview people in another neighborhood but the other one does not, the former will obtain income for 500, and the latter for 300, and vice versa. After receiving the order from the company, Marta is always the one who starts to work first. Sara has information about the places where Marta has done the surveys. Please:…
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