**8)The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.SellerCostMarcia$200Jan-$250Cindy$350Greg$400Peter$700$800BobbyRefer to the table above. You wish topurchase 10 piano lessons, so you takebids from each of the sellers. The bidsare required to be rounded to thenearest dollar. You will not accept a bidbelow a seller's cost because you areconcerned that the seller will not provideall 10 lessons. Your parents have givenyou $450 to spend on piano lessons. Youbelieve that the sellers with higheropportunity costs offer higher qualitylessons. You want the highest qualitylessons that you can afford, but you canspend any remaining money on dinnerwith friends. From whom will you takelessons, and how much money will youspend?a. Peter; $450b. Cindy; $450

Detailed Explanation:The table shows the opportunity costs of six different piano teachers for…

Answered: * *8) The numbers reveal the…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.7P

See similar textbooks

Similar questions

Five roommates arc planning to spend the weekendin their dorm room watching movies, and they arcdebating how many movies to watch. Here is theirwillingness to pay:Quentin Spike Ridley Martin StevenFirst film $14 $10 $8 $4 $2Second film 12 8 4 2 0Third film 10 6 2 0 0Fourth film 6 2 0 0 0Filth film 2 0 0 0 0Buying a DVD costs SIS, which the roommates splitequally, so each pays $3 per movie.a. What is the efficient number of movies to watch(that is, the number that maximizes total surplus)?b. from the standpoint of each roommate, what isthe preferred number of movies?c. What is the preference of the median roommate?d. (f the roommates held a vote on the efficient out~come versus the median voter's preference, howwould each person vote? Which outcome wouldg~ a majority?c. lf one of the roommates proposed a differentnumber of movies, could his proposal beat thewinner from part (d) in a vote?f. Can majority rule be counted on to reach efficientoutcomes in the provision of public go<Xis?
What are four responses to the claim that people should not behave in the way described in this chapter?
In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent?
Table 1Buyer Willingness To PayLori $50.00Audrey $30.00Zach $20.00Calvin $10.002. Refer to Table 1. If the price of the product is $15, then who would be willing to purchase theproduct?a. Lorib. Lori and Audreyc. Lori, Audrey, and Zachd. Lori, Audrey, Zach, and Calvin3. Refer to Table 1. If price of the product is $30, then the total consumer surplus isa. $-10.b. $-6.c. $20.d. $30.
Suppose the administration of a University that is located a high-crime urban area mustdecide on a policy to increase policing on its campus. The student population is 10,500 students but iscould increase if crime is reduced. The cost of added policing in terms of additional salary and equipmentis estimated to be $2.4 million per year. Suppose the administration plans to make their decision with thehelp of a benefit cost analysis of the policy. VSL is $11.8 million a. Explain how the concept of Value of a Statistical Life might factor into a benefit cost analysis of thispolicy. b. How many lives would need to be save to justify the added policing costs if only prevented deathswere considered as the policy benefit? c. Suppose it is believed that student enrollment will increase in the future if crime on campus is reduced.Write a formula to calculate the present value of benefits of policing if student enrollment increases by4% each year.
please clear explain why choose D
1. Which of the following may not raise money for the government? [A] Power of taxation[B] Police power [C] Power of eminent domain [D] Privatization of government’s capitalassets2. In this power of the State, the person who is parting with his money or property ispresumed to receive a benefit. [A] Taxation [B] Police power [C] Eminent domain [D]Forfeiture power3. (CPA Exam) Police power as distinguished from eminent domain. [A] Just compensationis received by the owner of the property. [B] May be exercised by private individuals. [C]Superior to impairment clause of the Constitution [D] Property is taken by the governmentfor public purposes4. The following are common to the inherent powers of the state, except: [A] They arenecessary attributes of sovereignty [B] They interfere with private rights and property. [C]They affect all persons or public. [D] They are legislative in nature and character.5. The basic principle of taxation which states that taxes must be based on taxpayer’s…
Asnwer to this Q?
a Guildrerian traded buys a 150 flop barrel of florish pickles by exchanging 15 gulps and a florish trader buys a 8 gulp crate of Guilderian apples by exchange 80 flops. Then the gulp appreciation to 25 flops per gulp, What price must the Guilderian pay for the same 150 flop of barrel pickles? b. How much must the Florish trader pay for the same 8 gulps crate of apples? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Chloe's Demand Schedule Price ($/gallon) Quantity Demanded (gallons/year) $6 50 5 100 4 150 3 200 2 250 1 300 Chloe's willingness to pay for her 51st gallon of gasoline is....and her willingness to pay for her 301st gallon of gasoline is.... (Enter your response to the nearest penny.) This is an example ofwhich? diminishing marginal benefit decreasing total benefit decreasing demand . If you drew Chloe's demand curve, using the demand schedule above, what would you notice about Chloe's marginal benefit curve and the demand curve? The two curves would be unrelated the same .
Pricing with Market Power and Consumer SurplusPat’s Patriotic Tattoosis the only tattoo parlor in town.Pat tattoos only images of the American flag. Thereare 20 consumers whoare willing to buy a tattoo. Each consumeris interested in buying only onetattoo,butthey vary in their willingness to pay. One consumeris willing to pay $20for a tattoo; anotheris willingto pay $19; a third, $18, down to the consumerleast willing to pay whohasareservationprice of $1. The Effects of Price DiscriminationUse the exampleofPat’s Patriotic Tattoos to make some conclusions abouttheeffects of pricediscrimination.8. What happensto consumersurplusif a firm successfully price discriminates?9. What happenstothefirm’s profits if it successfully price discriminates?10. What happensto the quantity supplied by a successful price-discriminating monopoly firm compared with a nonprice-discriminating monopoly firm?11. How doesthe quantity supplied by a successful price-discriminating monopoly firm compare.with the…
Suppose the market for auto insurance is made of up two types of buyers: high-risk and low-risk. Buyers’ willingness to pay (WTP) for auto insurance plans, and sellers’ willingness to accept (WTA) when selling plans to each type of buyer, are outlined in a photo (a) In a world with perfect information, would the market for insurance plans clear? If not, why? If yes, what are some prices that would a llow both markets to clear? The prices in each market are allowed to differ Assume now that there is asymmetric information and that insurance companies do not know how risky an individual buyer is. In the face of this uncertainty, they determine that the probability that a “walk-in” is high-risk is 0.75. What is the minimum price sellers are willing to accept when selling an insurance plan? At this price, will low- and high-risk buyers both be willing to purchase this insurance plan? Explain. Be sure the mention adverse selection in your answer.

SEE MORE QUESTIONS

Recommended textbooks for you

Microeconomic Theory

Economics

ISBN:

9781337517942

Author:

NICHOLSON

Publisher:

Cengage

Principles of Economics, 7th Edition (MindTap Cou…

Economics

ISBN:

9781285165875

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Microeconomics (MindTap Course List)

Economics

ISBN:

9781305971493

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Microeconomic Theory

Economics

ISBN:

9781337517942

Author:

NICHOLSON

Publisher:

Cengage

Principles of Economics, 7th Edition (MindTap Cou…

Economics

ISBN:

9781285165875

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Microeconomics (MindTap Course List)

Economics

ISBN:

9781305971493

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

SEE MORE TEXTBOOKS