Use the following information to answer questions 7 - 12. Suppose there is one buyer located...
Use the following information to answer questions 7 - 12. Suppose there is one buyer located at points 1 through 11, one unit of distance apart. These buyers purchase at most one unit of the product when its price is less than or equal to $10. Assume the MC and AC of producing the product is $5. Transport costs are constant per unit of distance. 7. If a seller must sell at only one point, 1-11, the profit maximizing location...
Use the following information to answer questions 7 - 12. Suppose there is one buyer located at points 1 through 11, one unit of distance apart. These buyers purchase at most one unit of the product when its price is less than or equal to $10. Assume the MC and AC of producing the product is $5. Transport costs are constant per unit of distance. 7. If a seller must sell at only one point, 1-11, the profit maximizing location...
t=transport costs Use the following information to answer questions 1 - 6. Suppose there is one buyer located at points 1 through 11, one unit of distance apart. These buyers purchase at most one unit of the product when its price is less than or equal to $10. Assume the MC and AC of producing the product is 5. Transport costs are constant per unit of distance and the seller is located at point 6. 4. If t= 1 and...
Use the following information in answering questions 14 - 19. Assume persons of type 1 value quality level z and the product itself such that the reservation price for one unit is 8 + 2z. Similarly, for a person of type 2 the reservation price is 10 + 4z. The cost of producing the product is 2 and the cost of each unit of z is 3. Assume that z can be either equal to 1 or 2. This same...
Use the following information in answering questions 14 - 19. Assume persons of type 1 value quality level z and the product itself such that the reservation price for one unit is 8 + 2z. Similarly, for a person of type 2 the reservation price is 10 + 4z. The cost of producing the product is 2 and the cost of each unit of z is 3. Assume that z can be either equal to 1 or 2. This same...
Use the following information in answering questions 1 - 9. Assume persons of type 1 value quality level z and the product itself such that the inverse demand for the product is given by P, = 10 - Q. + 2z. Similarly, for a person of type 2 the inverse demand for the product is given by P2 = 24 - 2Q2 + 6z. The AC and MC of producing the product with quality z is MC = AC= 2...
Use the following information to answer questions 1 - 6. Assume there are three persons who choose at most one unit of good X and Y with reservation prices for X and Y given in the table below. Also assume that MC = AC = 3 for good X and MC = AC = 2 for good Y. Person A Person B Person C 1 x Y 8 2 6 3 4 6. When the price of X is 6...
Suppose that a seller has one item, which we will call item x. There are three buyers, whom we will call A, B, and C. The values that these buyers (A, B, and C) have for the item are 6, 3, and 1, respectively. (a) Suppose that the seller runs a second price auction for the item. Which buyer will win the auction and how much will this buyer pay? Make it clear what are the bids. (b) Now let...
Answer the following questions based on the tables below. Buyer в Willingness to pay for one unit $35 $33 $27 $22 $21 $13 $13 $12 $6 Seller EMULA Willingness to sell one unit $4 $9 $12 $14 $15 $21 $23 $30 $51 G H Ι Instructions: Enter your answers as whole numbers. a. The quantity demanded at a price of $10 is O units units The quantity supplied at a price of $10 is C units units b. The quantity...
Suppose that a seller has one item, which we will call item x. There are three buyers, whom we will call A, B, and C. The values that these buyers (A, B, and C) have for the item are 6, 3, and 1, respectively. (a) Suppose that the seller runs a second price auction for the item. Which buyer will win the auction and how much will this buyer pay? Make it clear what are the bids. (b) Now let...