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Deep Clean, Inc., provides deep cleaning services for retail locations that have been exposed to virusinfected individuals. They have three types of potential customers: Type
Deep Clean, Inc., provides deep cleaning services for retail locations that have been exposed to virusinfected individuals. They have three types of potential customers: Type 1: Businesses serving individuals who are not at risk and that can maintain {Hoot distanoe Type 2: Businesses serving individuals who are not at risk, but that cannot maintain 5-foot distance Type 3: Businesses serving at-risk individuals Deep lClean's services come in three distinct versions: \" Basic\" : surfacelevel cleaning with normal cleaners \" Intense" : surfacelevel cleaning with medical-grade cleaners \" Extreme\" : deep cleaning with medicalgrade cleaners For the purposes of these questions, assume that Deep Clean's costs are zero. The marginal willingness to pay for the diiferent customer types is given in the following table: Upgrade to Upgrade to Intense Extreme Basic Group Sizes Time 3 -m_n Type 2 mll-_ Trpel mun-II 15. As before, assume that Deep Clean is aware of all of the IvaTP data and group size data in the table above, but cannot directly condition on the type of any customer. Suppose that Deep Clean does not offer \" Intense" and offers the menu: Prioe for \" Basic" : $15 Price for \"" Ehrtreme" : $52 \"That is Deep Cleanis revenue and the total deadweight loss? Deep Clean revenue = $544; D'WL = $125 Deep Clean revenue = $555; D'WL = $155 Deep Clean revenue 2 $735; D'WL = $175 Deep Clean revenue = $535; D'WL = $255 None of the other choices is the Deep Clean revenue and DWL F'F-'FJFUP
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