Question

2. Explain why the following statement is either true or false: I am the most talented goalie on my soccer team, and so I should always play goalie. 3. The table below corresponds to a former athlete who has decided to start selling appearances at birthday parties. This athlete is a monopolist selling this service. The first two columns correspond to how many appearances he could actually sell at various price levels. Assume, for each appearance, he has to pay his own travel costs, which amount to $3 on any given trip (that is the first appearance involves $3 worth of travel costs, making a second appearance would require incurring another $3 worth of costs). He is trying to decide on a per-appearance price to announce on his website. He will have to charge everyone the same price. Price Quantity Total Revenue Marginal Revenue Marginal Cost a. Fill in the rest of the table. b. Plot the demand curve, marginal revenue curve and marginal cost curves on the same graph. c. What is the athlete's profit maximizing price (appearance fee) and quantity (number of appearances)? d. What is his profit? e. If this were a competitive market (say there are many comparable former athletes offering these services), what would the market price and quantity be? What would the athlete's profit be? f. Describe two changes in circumstances that would cause the demand curve in this market to shift to the right.

Answer 1

2. It is a type II error. Lets assume that the person is actually the most talented goalie on his team, but if he ever joins another team, where he isn't the most talented goalie on the team, then he shouldn't be the goalie in that situation. So here, if the p-value is small, we fail to the null hypothesis.

3.

TR	MR	MC
21	21	3
36	15	3
45	9	3
48	3	3
45	-9	3
36	-15	3
21	-21	3