AutoSave OFF 19 0690 ... w- Assignment 6-SU22 AP2 - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Cambria (H... v 16 A A Aav A AaBbCcDdEe AaBbCcD AaBbCcDdBe AaBbCcDdE AaBbCcDdE AaBbCcDdEE AaBb Paste BIUvab X X A LA Emphasis Heading 1 Heading 4 Normal Strong Subtitle Title Styles Editor Pane 1. You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called "One Wring to Rule the Mall" C). Q P TC 0 $230 $1,800 10 $214 $2,650 20 $198 $3.400 30 $182 $4.170 40 $166 $5.080 50 $150 $6,250 60 $134 $7,800 70 $118 $9,850 80 $102 $12,520 90 $86 $15,930 100 $70 $20,200 Determine equations for P=f(Q), MR=f(Q), ATC=f(Q, Q2), AVC=f(Q, Q2), MC-f(Q, Q2). Recall that your marginal equations should be derivatives of your totals! b. Determine the profit-maximizing price and quantity. (Since MC is in terms of Q2, solving with calculus and algebra can be messy unless you know the quadratic formula. Your table should give an exact answer.) c. How much total profit would your firm earn if you set P and Q according to part b? d. Describe the competitiveness of the market by calculating the Lerner index. 2. For anyone interested, Massachusetts' Division of Professional Licensure can be your entry into the exciting career field of Elevator Operator. You must pay a processing fee of $25, allow access to your driver's license, provide a description of your "work experience in elevators," and (I am not making this up) pass an exam, which I assume goes beyond knowing what maybe six buttons do. Presumably, the licensing process protects consumers (who, obviously, can make mistakes); given the information presented this week, aside from ensuring high quality elevation services, why else might existing elevator operators find it in their interest to protect the licensing system? What side effects might the fees introduce into the elevator-operator market? 3. On the way to my mother's house for Thanksgiving dinner, my wife was on her phone and noted that Old Navy was going to be open for Black Friday sales starting on Thursday at 3pm. Many people lament the fact that stores are open very early the day after Thanksgiving or, as it seems, even open on Thanksgiving day itself. The owners, managers, and employees of retail stores presumably would enjoy spending Thanksgiving with their families instead of preparing for Black Friday sales, yet almost every store announces that it will open very early on Friday morning for shoppers. How might game theory offer an explanation for this unexpected behavior? Page 1 of 2 521 words [ English (United States) Focus E + 121%AutoSave OFF 19 0690 ... w- Assignment 6-SU22 AP2 - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Cambria (H... v 16 A A Aav A EV EVEVEE AaBbCcDdEE AaBbCcD AaBbCcDdEe AaBbCcDdE AaBbCcDdl AaBbCcDdEE AaBb Paste BI Uvab X X|A LA Emphasis Heading 1 Heading 4 Normal Strong Subtitle Title Styles Editor Pane Open in Moodle: Aug. 11, 12:00am - Aug. 13, 11:59pm Latest ProctorU appt. time: Aug. 13, 8:30pm 4. The following is a payoff matrix showing profit in millions of dollars when two companies simultaneously decide on various advertising budgets ($1 million, $2 million, or $3 million): Pizza Hut $1 mill $2 mill $3 mill $1 mill $130 / $85 115 / 90 105 / 80 Papa Johns $2 mill 140 / 75 125 / 70 100 / 60 $3 mill 120 / 60 110 / 65 95 / 55 a. In the first round of strategy elimination (when all three possible budgets are under consideration), which ad budget would the companies exclude? b. After the first round of elimination (previous question), would either company make a second-round elimination? . What would be the likely outcome of this simultaneous advertising decision (i.e. what ad budget would each company end up choosing)? Page 2 of 2 521 words X English (United States) Focus E + 121%