.It's my midterm exams please
There are two segments of the market represented by demand relationships: Q = 90 3p and Q = 180 6p. There's a constant marginal cost of $10 to serve the market. There are 5 consumers in each of the two demand segments. In other words, there are 5 people whose individual demand is represented by Q = 30 3p and 5 people whose demand is represented by Q = 180 6p. (a) Find the optimal two-part tariff scheme if you are required to charge a per-unit price of $10, but must offer the same xed price to both types of demanders. Report both prices and prots. (b) 12 points Find the optimal twopart tariff scheme if you are free to set any per unit price but must offer the same xed price to both types of demanders. Report both prices and prots. ((3) Find the optimal twopart tariff scheme if you are able to offer a different xed price to both types of demanders (and any per-unit price). Report both prices and prots. No Traffic Congestion Mild Traffic Severe Traffic (Minutes) Congestion Congestion (Minutes) (Minutes) Tennessee Street 15 30 45 Back roads 20 25 35 Expressway 30 30 30 In the past 60 days, Dorothy encountered severe traffic congestion 10 days and mild traffic congestion 20 days. Assume that the past 60 days are typical of traffic conditions. a. What route should Dorothy take. Use the EP criterion. (10 points) b. Dorothy is about to buy a radio for her car that would tell her the exact traffic conditions before she started to work each morning. How much time in minutes on the average would Dorothy save by buying the radio? (i.e. Calculate the EVPI) (5 points)..5 A call option on a stock that does not pay dividends has the following parameter values (in the usual notation): 5=240, K =250, T =0.5, /=0.06, a =0.2 The graphs below show the theoretical price of this option at time t=0 when each of the parameters 5, K, T and r is varied without changing the values of the other parameters. Identify which parameter has been plotted along the x-axis of each graph. Graph 1 Graph 2 40 40 30 20 20 10 10 Graph 3 Graph 4 25 25 20 15 10 10 5 6 A 9-month forward contract is issued on a share that has a current price of $7. Dividends of 50p per share are expected in 2 months' time and 8 months' time. Assuming a risk-free effective rate of interest of 6% per annum and no arbitrage, calculate the forward price