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12 5.98/8.37 points awarded prises and what was marked correct and incorrect from your previous attempt Suzanne owns the only kayak rental company in a

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12 5.98/8.37 points awarded prises and what was marked correct and incorrect from your previous attempt Suzanne owns the only kayak rental company in a small resort town. Every day there are people potentially interested in reming e kayak, each with a reservation price shown in the table. The marginal cost to Suzanne of renting out a kayak is $20. Potential Reservation Customer Price 1 $85 2 $75 3 $65 4 $55 S $45 16 $35 7 $25 8 $15 a. What is the socially efficient number of kayaks for Suzanne to rent out each day? kayaks b. If Suzanne acts as a single-price monopolist, then how many kayaks will she rent out each day, and what price will she charge for each kayak? 55 4 kayaks per day at a price of $ per kayak c. Now suppose Suzanne offers to give a discount to customers who fill out a customer satisfaction survey. People with reservation prices above $45 will never fill out the survey, while those with reservation prices of $45 or less will always fill out the survey. How many kayaks will Suzanne rent out each day? What price should she charge to people who do not fill out the survey? And what price should she charge to people who do fill out the survey? 35 per kayak Price charged to those who don't fill out the survey: $ 55 per kayak Price charged to those who do fill out the survey: $ 6 kayaks total. Suzanne should rent out d. is consumer surplus higher when Suzanne acts as a single-price monopolist (part b) or when Suzanne price discriminates (part c Consumer surplus is higher when Suzanne price discriminates O 12 5.98/8.37 points awarded Scored incorrect from your previous attempt. Suzanne owns the only kayak rental company in a small resort town. Every day there are 8 people potentially interested in renting a kayak, each with a reservation price shown in the table. The marginal cost to Suzanne of renting out a kayak is $20 Potential Reservation Customer Price 1 $85 2 $75 3 $65 4 $55 5 $45 6 $35 7 $25 8 $15 a. What is the socially efficient number of kayaks for Suzanne to rent out each day? kayaks b. If Suzanne acts as a single-price monopolist, then how many kayaks will she rent out each day, and what price will she charge for each kayak? kayaks per day at a price of $ 55 per kayak c. Now suppose Suzanne offers to give a discount to customers who fill out a customer satisfaction survey. People with reservation i prices above $45 will never fill out the survey, while those with reservation prices of $45 or less will always fill out the survey. How many kayaks will Suzanne rent out each day? What price should she charge to people who do not fill out the survey? And what price should she charge to people who do fill out the survey? 35 Oper kayak Price charged to those who don't fill out the survey: $ 55 per kayak Price charged to those who do fill out the survey: $ Suzanne should rent out kayaks total. d. Is consumer surplus higher when Suzanne acts as a single-price monopolist (part b) or when Suzanne price discriminates (part cj? Consumer surplus is higher when Suzanne price discriminates

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