6) Netflix is making two versions of its subscription plans (4K and FHD), which target consumers with high and low willingness to pay, as given in the table below. If there is zero marginal cost for the firm in both versions, what should be the incentive compatible second degree discriminated prices? Is this profit maximizing? Willingness to pay ($) Consumer 4K FHD High WTP Low WTP 60 20 20 10

Q: Consider Population model Y = Bo + B1X1 + B2X2 + B3X3 + µ. Now consider the following statements a…

A: Given,  The Model :Y=β0+β1X1+β2X2+β3X3+μAssumption : MLR 1-4 is satisfied

Q: Which of the following describes an implicit cost? NO opportunity cost is involved. NO outlay of…

A: Cost can be of two types, explicit cost and implicit cost.

Q: Consumer surplus for a particular unit sold is equal to which of the following?   Question 10…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose market demand and supply are given by Qd=100-2P and Qs=5+3P. If a price floor of $30 is set,…

A: "Price floor is a type of price control used by the government to impose a limit on how low a price…

Q: Discuss the sustability during the pandemic on how they have influenced the management of the…

A: Agriculture business management is a specialization in management that focuses on the commercial…

Q: Some of the poor and middle-income students end up paying high tuition fees in privately-owned…

A: Education is most important factor for self as well as economy's development. It helps economy to…

Q: Discuss the threats of independence in the Waste management scandal 1998

A: Auditor independence Auditor independence states that the person conducting the audit should be an…

Q: The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter 100 Year 1 Quantity…

A: Real GDP is defined as an inflation-adjusted measure that shows the value of all commodities and…

Q: A monopolist with constant marginal costs equal to 0.04 faces a market with the inverse demand…

A: Given the MC = 0.04 Inverse demand, p(q) = 100 / (100 + q)

Q: Suppose that flu shots create a positive externality equal to $10 per shot. Further suppose that the…

A: Externality refers to spill-over effect of a good on third party which is not involved in either…

Q: Consider an one person, two good, one input economy. This is "Lea's Economy". Lea's utility function…

A: Opportunity Cost refers to the value of the payoff of the economic activity that an individual agent…

Q: Which of the following is true?     The width of the federal funds target range is 50 basis…

A: The current federal funds rate is 0.50 % - 0.25 %. There is 25 basis point difference between…

Q: Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as…

A: A labor union refers to a specfiic group formed by some experienced and powerful workers or worker…

Q: Are America’s elderly a minority group?

A: The elderly's economic situation in the United States has improved dramatically in recent years as a…

Q: How does the “too big to fail” increase moral hazard? Can you cite an example from the 2007- 2009…

A: A financial crisis is when financial instruments and resources decline altogether in esteem.

Q: EXERCISE 443.1 (Delayed modified grim trigger strategies) Choose a positive in- teger k and consider…

A: Grim Trigger Game refers to a game where players coordinate round by round until there is no defect…

Q: What term refers to the optimal action that a player can take, regardless of the opponent a Nash…

A: Payoff matrix refers to a table or schedule which represents payoffs for each possible combination…

Q: Discuss the Material Balance Model of the Economy and environment. Explain it in your words (do not…

A: This concept is from the environmental economics.  This model is given by Ayres and Kneese and is…

Q: ELASTICITY -What type of elasticity occurs and what is the financial result if: • The elasticity is…

A: When the value of elasticity is less than 1, elasticity is said to be inelastic.

Q: Output (Y) : 4,000 Government Spending (G): 600 Desired Consumption (C"): 3,400 Real interest rate:…

A:

Q: 1. Identify how the following factors affecting demand impacts the given goods/services. (POSITIVE,…

A: An inferior good is such a product or service whose usage decreases with increasing income. For…

Q: Suppose that changes in the bank regulations expand the availability of credit cards so that people…

A: The card that is being used for making purchases, and getting cash advances that in turn requires…

Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…

A: Present value refers to the current value for a series of future sum of money or a series of cash…

Q: Year PDB 2015 2016 2017 1200 1230 1290 1300 2018 2019 1500

A: Given data for 5 years Growth rate each year formula = (PDB in year 2016 / 2015) - 1 * 100 =…

Q: Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand…

A: Answer: Given, Supply function: p=q2+20q Demand function: p=-2q2+10q+11,400 At equilibrium,Quantity…

Q: A bag of fertilizer has a marginal revenue product of $100. The current price in the store is $150.…

A: Here, information about the marginal revenue product and price of a bag of fertilizer Inna store is…

Q: According to neoclassical economists, a graph of aggregate supply in long run appears: A) Upward…

A: Aggregate supply curve shows relationship between price and quantity supplied in the economy.

Q: O Question 12 The equation for the 1.5 mile run/jog test is: VO,max (mi/kg/min) = 3.5 + [483 + (time…

A:

Q: According to John Rawls, the welfare of society only depends on the welfare of the  ------------…

A: When talking about the theory of John Rawls on the social welfare, it can be said that he beleives…

Q: the following statements describes Principle 1: Peoplé face tr Binge watching your favorite drama…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first 3 question for you. If…

Q: In the event of strong economic growth in China which relationship/s will be affected? Short Run…

A: A strong economic growth in China implies a rise in the total production capacity of a nation. This…

Q: TRUE OR FALSE One implication of Walras’ Law for a two-commodity exchange economy is that if one…

A: Walras law says that if the demand and supply is satisfied for one good in any economy with two…

Q: Country A's payoff If majority invest If majority does not invest Country A does not invest Country…

A: Given: Country A's payoff Country A invest Country A does not invest If majority invest 1 2…

Q: Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…

A: It refers to a market scenario where there is a large number of buyers and sellers dealing in a…

Q: Determine the present value equivalent of a geometric sequence of annual cash flows starting at P…

A: We have given  Cash flow at end of 3rd year =1000 g=5% i=12% We have to find the present value.

Q: Explain how a firm in a competitive market identifies the profit-maximizing level of production.…

A: A firm in a competitive market can identify the profit maximizing level of production at that level…

Q: 13. Suppose the demand for good X is given by Qª, = 20 – 4P, + 2P, + M. The price of good X is $5,…

A: "Demand represents a buyer's desire to buy a commodity or service with willingness to pay a price…

Q: uestion 3 - ONLY NEED DIAGRAM / ANSWER FOR PART II (C)   i. Douglas allocates his budget of $24…

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…

Q: When economists look for some explanation for government provision, we want to find some kind of…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Which of the following statements describes Principle 6: Markets are usually a good way to organize…

A: A market refers to the platform or a place for the people to interact with each other for making an…

Q: Which of the following is a characteristic of monopolistic competition? few sellers homogeneous…

A: There are different market structures, oligopoly, monopoly, monopolistic competition and perfect…

Q: You are an owner of a car wash, and you meet with other neighborhood car wash owners. Consider that…

A: Demand is the quantity of a product, item, commodity, or service that consumers are willing and able…

Q: a) A cup of coffee costs $1.74. Inflation is expected to be 2.10% per year for the next 7 years.…

A: Note: We will answer the first question as the exact one was not specified. Please resubmit the new…

Q: All points on the utility possibilities frontier satisfy the Pareto condition.   TRUE OR FALSE

A: PPC is a graph that depicts the many combinations of two items that the economy can make. This graph…

Q: Direction: Solve the elasticity of demand. Then determine the degree of its elasticity. Q2= 10; P2=…

A: 1) Given; Q2=10P2=50Q1=7P1=100Elasticity of demand:-Ed=∆Q∆P×PQ    =Q2-Q1P2-P1×P1Q1…

Q: Suppose that during an economic boom labour costs rise by 100% and are expected to stay at that…

A: The expansion path depicts the lowest-cost labor and capital combinations that can be used to…

Q: 22. For the three-part question that follows, provide your answer to each part in the given…

A: Purchasing power of an individual depends on the real increase in the amount of income rather than…

Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…

A: The total cost of the generator = P120000 + P10000 = P130 000 Salvage value = 8000 Life = 15 years…

Q: Why does the presence of negative externalities lead to a misallocation of societal resources? O…

A: Negative externality refers to external cost of a good or service on third party which is not a part…

Q: 3. Consider an auction wheren identical objects are offered, and there are (n + 1) bidders. The…

A: The bidder's income has an impact on the bidding strategy since, above a certain price, the person…