Question
A buyer with income M has utility function U(q,m) = m + q 2 , where q is the quantity of a good sold by
A buyer with income M has utility function U(q,m) = m + q2, where q is the quantity of a good sold by the seller and m is income remaining after purchasing the good. The seller, who has zero costs, offers a take-it-or-leave-it quantity q for total payment P. What is the seller's profit-maximising offer?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
