The dropdown choices are given it is not fill in the blank.Nick works as a private tutor on evenings and weekends. He has no fixed costs, and his opportunity cost of giving a tutoring session is $25.He has nine potential students each week whose willingness to pay are shown in the following table:Willingness to PayStudent (Dollars per tutoring session)A40B38с36DEFGHISuppose Nick has to charge a single price to all of his students.Show Transcribed Text3432302852624For each quantity of tutoring sessions he could give, fill in the Total Revenue column in the following table with the most total revenue he could earnat each quantity of sessions. Then, complete the table by computing the marginal revenue at each quantity of tutoring sessions.StudentsWillingness to Pay(Sessions per week) (Dollars per tutoring session)012346789403836343230282624Total Revenue(Dollars per week)04076108136160Ć180196208216Show Transcribed TextIf Nick can practice perfect price discrimination, he should give 4 tutoring sessions.Marginal Revenue(Dollars per tutoring session)4036322824201612If Nick has to charge a single price to all of his students, he will maximize his profit by giving 1 tutoring sessions. This is 2 than the efficientnumber, which is 3 tutoring sessions.8Now suppose Nick cannot practice perfect price discrimination, but he is able to find a hurdle that identifies the group of students who are willing topay at least $34 for a tutoring session (the "list price" submarket), and those who are not (the "discount price" submarket). In order to maximize hisprofit under this pricing scheme, he should charge 5 in the list price submarket and 6 in the discount price submarket.Drop-down options1&3&4: 2,3,4,5,6,7,8,9Drop-down option2: less, moreDrop-down option5&6: 34, 32, 30, 28

The amount of money a business makes from selling its goods and services over a specific time period…

The dropdown choices are given it is not fill in the blank. Nick works as a private tutor on evenings and weekends. He has no fixed costs, and his opportunity cost of giving a tutoring session is $25. He has nine potential students each week whose willingness to pay are shown in the following table: Willingness to Pay Student (Dollars per tutoring session) A B с D E F G H I Suppose Nick has to charge a single price to all of his students. 40 38 36 Show Transcribed Text 34 32 30 28 26 24 For each quantity of tutoring sessions he could give, fill in the Total Revenue column in the following table with the most total revenue he could earn at each quantity of sessions. Then, complete the table by computing the marginal revenue at each quantity of tutoring sessions. 0 1 2 Students Willingness to Pay (Sessions per week) (Dollars per tutoring session) 3 4 5 40 38 36 34 32 Total Revenue (Dollars per week) 0 40 76 108 136 160 Marginal Revenue (Dollars per tutoring session) 40 36 32 28 24

The dropdown choices are given it is not fill in the blank. Nick works as a private tutor on evenings and weekends. He has no fixed costs, and his opportunity cost of giving a tutoring session is $25. He has nine potential students each week whose willingness to pay are shown in the following table: Willingness to Pay Student (Dollars per tutoring session) A B с D E F G H I Suppose Nick has to charge a single price to all of his students. 40 38 36 Show Transcribed Text 34 32 30 28 26 24 For each quantity of tutoring sessions he could give, fill in the Total Revenue column in the following table with the most total revenue he could earn at each quantity of sessions. Then, complete the table by computing the marginal revenue at each quantity of tutoring sessions. 0 1 2 Students Willingness to Pay (Sessions per week) (Dollars per tutoring session) 3 4 5 40 38 36 34 32 Total Revenue (Dollars per week) 0 40 76 108 136 160 Marginal Revenue (Dollars per tutoring session) 40 36 32 28 24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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d) Another classmate cares more about good grades: She gets 50 units of happiness for a B and 80 units of happiness for an A. If this classmate were your partner (but your preferences remained the same), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would she also want you as a partner?
3. Suppose a company produces 2 products, X and Y, and has 3 potential buyers, A, B, and C. The following table summarizes each potential buyer's willingness to pay for each good: A В C 4 3 Y For simplicity, assume there is no production cost.
How about for when he does 8 customers?I'm having trouble figuring out how to do this due to the fact that I can't seem to understand when MR is truly greater than MC.VC and TFC are still the same.
Maggie is currently using the website Matchmaker.com to help her search for a new partner. Maggie is enjoying going on the dates she has arranged through this website. She believes the marginal benefits are more than the marginal costs from using the website. Which of the following statements is true? Maggie should always continue using Matchmaker.com as the benefits outweigh the cost. Maggie's opportunity cost from using Matchmaker.com will eventually start to rise and her benefits will eventually start to fall. Maggie should immediately cease using Matchmaker.com when she has a successful date. With her benefits per hour currently exceeding her costs per hour, Maggie is at the optimal level of information. Maggie's use of Matchmaker.com will become subject to diminishing returns to scale as her costs fall. 0000
Uncertain what would be the correct answer
Suppose you get two job offers when you graduate. First offer is in LA and pays $6000 permonth. The price of food in LA is $3 and price of housing is $5. The second offer is in SanFrancisco and pays $10000. Both food and housing is more expensive in SF at PF = 4 and PH = 6respectively. If your utility function is U (F, H) = F1/4 H 3/4 which job offer should you accept?
Suppose an insurance company wants to charge a very healthy individual a premium of $1,200 a year for health coverage. It also wants to charge a less healthy individual a premium of $3,600 a year for health coverage. It is seeking to ascertain from any given customer information regarding his/her health by asking for several pieces of health-related information, such as doctor assessments of the person’s health, history of health-related problems, etc. The opportunity cost of a very healthy person securing a health report is $250 and the opportunity cost of a less healthy person securing a health report is $650. Of the choices below, how many reports should the company request to best ensure its paying the right premium to the right person? Reconsider the previous health insurance question. Of the choices below, which one is closest to the spread between the minimum possible number of reports and the maximum possible reports to achieve the company’s desired outcome? Reconsider again…
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the skirt: Store Travel Time Each Way Price of a Skirt (Minutes) (Dollars per skirt) Local Department Store 15 102 Across Town 30 85 Neighboring City 60 76 Juanita makes $42 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Ricky's Donuts sells premium donuts. Premium donuts have toppings. The demand for premium (PR) donuts is: PPR = 5.70 - 0.45QPR The marginal cost for each is: MCPR = 0.20 Now Ricky starts selling cupcakes. This creates an opportunity cost of 0.10 per premium donut as those toppings cannot be used for cupcakes. Which of the following statements is true? Ricky's Donuts sells premium donuts. Premium donuts have toppings. The demand for premium (PR) donuts is: PPR= 5.70 - 0.45QPR The marginal cost for each is: MCPR= 0.20 Now Ricky starts selling cupcakes. This creates an opportunity cost of 0.10 per premium donut as those toppings cannot be used for cupcakes. Which of the following statements is true? With the opportunity cost, Ricky should produce 9 premium donuts The opportunity cost will increase profit The opportunity cost will change the minimum average cost The opportunity cost will increase fixed costs With the opportunity cost, more premium donuts will be…
For the Statement at the end, there are drop down arrows and options for you to choose from, and values to fill in. Drop down options will be listen in brackets, and blanks are values that must be found. Simone's profit is maximized when she produces _______shirts. When she does this, the marginal cost of the last shirt she produces is $_______ , which is (greater/less) than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt over the amount that would maximize her profit) is ________, which is (greater/less) than the price Simone receives for each shirt she sells. Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the (marginal cost and marginal revenue/ total cost and profit/ total cost and total revenue/ marginal cost and total revenue/ total revenue and profit/ total cost and marginal revenue) curves. Because Simone is a price taker, this last condition can also be…
Problem 6 Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y² dollars (i.e. the price of y units is y dollars, hence the quadratic cost). Cheese is sold in the usual way at a price of 2 dollars per unit. Casper's income is 20 dollars and his utility function is U(x, y) = x+2y, where z is his consumption of cheese and y is his consumption of cocoa. a. Sketch Casper's budget set and shade it in. b. Sketch some of his indifference curves and label the optimal bundle that he chooses. c. Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this income, i.e. calculate the optimal bundle. (Recall that you can find the slope of any curve using the Total Differential, i.e. the MRS formula works in general)