Which of the goods below best represents a non-rival, excludable good? Select one: O A. none of the other answers a music streaming service O C. wild rabbits O D. a free outdoor cinema O E. water

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Which of the goods below best represents a non-rival, excludable good?
Select one:
O A. none of the other answers
a music streaming service
O C. wild rabbits
O D. a free outdoor cinema
O E. water
Transcribed Image Text:Which of the goods below best represents a non-rival, excludable good? Select one: O A. none of the other answers a music streaming service O C. wild rabbits O D. a free outdoor cinema O E. water
Willy and Arthur live together in an apartment and both work from home as phone salesmen. Willy
gets paid commission of $23 per sale and Arthur gets paid $32 per sale. They can create sales over
the phone (landline) and via email.
One day, the power to their apartment is cut, so they use a backup generator, however the
generator's capacity is limited. Willy and Arthur need to each plug in their phone to call potential
clients, or their computer to email. With their phone plugged in, either Willy or Arthur can make 10
sales in the day. If they have their computer plugged in, they can make 4 sales via email. If they have
both plugged in they can make a total 14 sales that day.
However, the generator can only handle 3 devices plugged in. If all 4 devices (both computers and
both phones) are plugged in, the generator will short out and there will be no power (and therefore
no sales) that day. How many Nash equilibria are there in the game where Willy and Arthur each
decide whether to just plug in their phone, or both their phone and computer for the day?
Answer:
Transcribed Image Text:Willy and Arthur live together in an apartment and both work from home as phone salesmen. Willy gets paid commission of $23 per sale and Arthur gets paid $32 per sale. They can create sales over the phone (landline) and via email. One day, the power to their apartment is cut, so they use a backup generator, however the generator's capacity is limited. Willy and Arthur need to each plug in their phone to call potential clients, or their computer to email. With their phone plugged in, either Willy or Arthur can make 10 sales in the day. If they have their computer plugged in, they can make 4 sales via email. If they have both plugged in they can make a total 14 sales that day. However, the generator can only handle 3 devices plugged in. If all 4 devices (both computers and both phones) are plugged in, the generator will short out and there will be no power (and therefore no sales) that day. How many Nash equilibria are there in the game where Willy and Arthur each decide whether to just plug in their phone, or both their phone and computer for the day? Answer:
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