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7 A manufacturer of flash drives has a profit function 1r = t 7 9112 where t is the price charged for a flash drive
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A manufacturer of flash drives has a profit function 1r = t 7 9112 where t is the price charged for a flash drive and 9112 is the cost of producing a drive whose capacity is qgigabytes. A consumer of type 9 has a utility function u = 011 7 t, where 9 takes on a value of 13 for Hitype consumers, or 10 for Litype consumers. There are 10 consumers of each type. A consumer gets zero utility if she does not buy. If a consumer is indifferent between buying two flash drives, assume she will buy the one with more gigabytes. If a consumer is indifferent between buying a flash drive and not buying, assume she will buy. Answer the following. If rounding is needed, round to 3 decimal points. e) (0.5 points) What is the utility for the type 93 consumer from buying the (ch, fL) bundle? That is, what is my ('iLr {L )? U f) (0.5 point) What are the seller's profits if he offers the bundles (4L1 11) and (4\Step by Step Solution
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