Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant at $11. At a price of $60.50 per session, the number of sessions demanded is $ and producer surplus is $ 2 Using this subscription pricing model, this consumer would demand producer surplus is $ total price paid.) 3 5 Suppose the studio has devised a new pricing scheme for consumer whereby consumers can pay a flat fee of $222.75 and can have up t 6 4 consumer would be . At this price and quantity, consumer surplus emand more than 1 session. This pricing scheme is a subscription service, sions total. sessions. Under this scenario, consumer surplus is $ and . (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the

Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant at $11. At a price of $60.50 per session, the number of sessions demanded is $ and producer surplus is $ 2 Using this subscription pricing model, this consumer would demand producer surplus is $ total price paid.) 3 5 Suppose the studio has devised a new pricing scheme for consumer whereby consumers can pay a flat fee of $222.75 and can have up t 6 4 consumer would be . At this price and quantity, consumer surplus emand more than 1 session. This pricing scheme is a subscription service, sions total. sessions. Under this scenario, consumer surplus is $ and . (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 11SCQ: The state of Colorado requires oil and gas companies who use fracking techniques to retune the land...

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2. Individual Problems 14-2 A local Pilates studio recently began offering a monthly subscription service for its patrons. Suppose a particular patron at this studio has the following willingness-to-pay schedule, per session. Session Willingness to Pay 1st $77 2nd $66 3rd $55 4th $44 5th $33 6th $22 Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant at $11. At a price of $71.50 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is $ and producer surplus is $ . Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service, whereby consumers can pay a flat fee of $237.60 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand sessions. Under this scenario, consumer surplus is $ and producer…
1. There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 - 2p Qy = 60 - 0.5p Assume that the marginal cost of producing cigarette X is $10, the marginal cost of producing cigarette Y is $8, and that the market for both cigarettes is perfectly competitive. Assume that each pack of cigarette X smoked does $5 worth of health damage to the smoker, and a total of $4 worth of health damage to the smoker’s neighbors via second-hand smoke. Each pack of cigarette Y smoked does $6 worth of health damage to the smoker, and $5 health damage to the smoker’s neighbors. (a) Explain why the public supply curves differ from the private supply curves, and how this represents the externality from second-hand smoke. Highlight the area(s) of your diagram that represents a social loss. (b) Calculate the social loss for both. (c) Suppose the government decides to pursue a Pigouvian solution to eliminate social loss. What's amount of tax or subsidy would the government…
1. There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 - 2p Qy = 60 - 0.5p Assume that the marginal cost of producing cigarette X is $10, the marginal cost of producing cigarette Y is $8, and that the market for both cigarettes is perfectly competitive. Assume that each pack of cigarette X smoked does $5 worth of health damage to the smoker, and a total of $4 worth of health damage to the smoker’s neighbors via second-hand smoke. Each pack of cigarette Y smoked does $6 worth of health damage to the smoker, and $5 health damage to the smoker’s neighbors. (a) Plot the private demand curve and private supply curve for both cigarettes on separate axes. (b) What is the privately efficient quantity demand of both cigarettes? (c) Add the public supply curves to the graphs you plot in (a). (d) What is the socially efficient quantity demand of both cigarettes?
A6. 1.Adam and Zoey are competing fish and chips sellers in Linear City. They are located at the twoopposing ends of the town’s 3-mile-long Main Street. The 1700 inhabitants of the town are distributeduniformly on Main Street and each of them eats at most one portion of fish and chips for lunch. People’sdisutility from getting to a fish and chips stand and back home amounts to $2 for each mile of distanceto the stand. The marginal cost of producing one portion of fish and chips is $9. The consumers areuniformly distributed along the street. Each consumer has a valuation of $29.0 for the product. Supposethat both Zoey and Adam can advertise at zero cost to inform everyone about their business. Find theequilibrium price of Zoey if neither of the two sellers advertises.
13) Suppose a certain change will generate £5,000 of benefits and £3,000 of costs.This change can best be described as(a) a potential Pareto improvement.(b) inefficient.(c) Pareto efficient.(d) equitable.
3. a) Suppose a monopolistically competitive firm operates in a long run which produces 40 umits of output at 120 taka per-unit cost (average total cost). Also, MC of producing 40-unit output is 60 taka. By using this information, show the long run situation of a monopolistically competitive firm in an appropriate diagram. Show all the relevant information in your diagram. b) Calculate cxcess capacity if socially efficient output is 100 units. Show it in graph too. [Note: a) and b) are related questions]
a) Consider that 2 agents make up the demand side of a market. Person A's marginal benefits are MBA 60-0.25Q, and person B's marginal benefits are MBB 60 GB Find market-level marginal benefits
Question 4: IBM faces two types of buyers for the printers they produce. High-valuation consumers (e..g. businesses) have a higher willingness to pay for quality (here printing speed as ppm) compared to low-valuation customers (e.g. households). We have that the total valuation for the high-valuation customers is TBH(q) = 509 – 192, where q is the printing speed (ppm) and the total valuation for the low-valuation customers is TB:(q) = 509 – 2. A printer of any quality q up 1 to q = 50 costs $250 to produce, independent of the actual speed, but producing a printer faster than q = 50 is impossible.a. Suppose that IBM can perfectly discriminate between the two groups of consumers. What quality is offered to each group? What is the maximum price that IBM can charge each group for the corresponding printer? b. Suppose that IBM cannot tell the two types of customers apart and must rely on consumer self-selection. Assuming that IBM chooses to offer two products of the qualities you derived in…
b) Discuss and explain the concept of positive return toscale showing it relationship with the quantity ofproduction.
7 Consider the following screening test for cancer applied to 100,000 people of whom 100 have cancer. Each test costs $6.50, picks up 75% of cancer cases., and additionally, 12% of the time, falsely diagnoses cancer. Detection of cancer (rightly or wrongly) leads to a further exact diagnostic test that costs $100. Correct early detection of cancer by the test is valued at $10,000 What is the marginal benefit of doing the test? What are the marginal costs of doing the test
Provide me two points for agree and two points for disagree (with elebaraotion and example)
Please no written by hand and no image SEU ELITE - ECON101 Question 8 The table below shows the marginal benefit that Yahya earns from keeping his store open one more hour. Yahya has a marginal cost of $100 per hour. Yahya stays open 8 hours. Hours {:[" Marginal Benefit Per "],[" Hour "]:} 8 180 9 150 10 140 11 120 12 100 13 80 14 50 a) Do you think Yahya's decision to stay open 8 hours is optimal? Why? b) How many hours do you advise Yahya to stay open? Why?