FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inflation, Unemployment And Capital Malformations

Inflation, Unemployment And Capital Malformations

Authors: Bernard Schmitt, Xavier Bradley, Alvaro Cencini

1st Edition

0429767064, 9780429767067

More Books

Students also viewed these Economics questions

Question

★★★★★
Your parents give you $2,000 as a graduation gift and you decide to invest the money in the stock market. If you are risk averse, should you purchase some stock in a few different companies through a...

Answered: 1 week ago

Question

★★★★★
Why did Josh and Bruno turn to Coastal Enterprises as a source of capital for their business?

Answered: 1 week ago

Question

★★★★★
What was the influence of the time period that elapsed between the treatment and the administration of the dependent variable?

Answered: 1 week ago

Question

★★★★★
Discuss the role of technology both in the nature of the service that Netflix provides and in the environment in which it competes. Feel free to expand by drawing on any personal knowledge you may...

Answered: 1 week ago

Question

★★★★★
can you lay this out in excel but most importantly show me how each cell answer was done. not just the answers but please break it down for me in excel. thank you 74 3 P12-23 Modified - use the...

Answered: 1 week ago

Question

★★★★★
4. FTJ Corporation is expected to pay the following dividends over the next four years: $12, 58, 57, and $2.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in...

Answered: 1 week ago

Question

★★★★★
Thinking about your natural negotiation style, ask yourself: In general, when does your style help you and when does it not help you in negotiation situations? Now, think about how you can translate...

Answered: 1 week ago

Question

★★★★★
There are three (3) columns, the first column is the reduction of prevention costs, second column is progressive reduction of appraisal costs, and the last column is reduction of failure costs. 2.In...

Answered: 1 week ago

Question

★★★★★
( Scenario 1 4 - 1 ) After it launched, PlayWithMe contracted with three major search engines to show its advertisements any time a user searched for certain terms that were closely identified with...

Answered: 1 week ago

Question

★★★★★
There are three different methods commonly used for capturing network data. These are (1) using a network tap, (2) using a SPAN port on a switch, and (3) using a tool built into a network device...

Answered: 1 week ago

Question

★★★★★
Gross amount of invouce is $ 8 5 0 . there is no freight charge. date of invoice is 8 / 4 . terms of invoice are 3 / 1 0 , 2 / 1 5 and n / 3 0 . date of payment is 8 / 1 8 . find the cash discount....

Answered: 1 week ago

Question

★★★★★
7. As your starting point, take a discussion you have had with a person at your workplace. Answer the following questions: Answer the following questions: What did you want to achieve? How did you...

Answered: 1 week ago

Question

★★★★★
5. What does it mean when someone views it as important for their human dignity to maximize certain human values?

Answered: 1 week ago

Question

★★★★★
6. Based on the following distributional norms, discuss what you think should be the norms basis of your workplace / school. Prioritize the distribution norms as you think they should be used: a) It...

Answered: 1 week ago

Previous Question Next Question