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l"i'luestion 11 2 pts True or False: Total surplus increases with the token and cover charge scheme. Q True 0 False Question 12 3 pts A monopolist faces the following inverse demand curve: P={362Q]2 where P is price, (1 is her total output and z is the gualitj,f of product sold. 2 can take on onlyr one of two values. The monopolist can choose to market a lowquality product for which 221 or a high quality product where :22. Marginal cost if independent of quality and constant at zero. Fixed cost, howeverr depends on the product design and increases with the qualitv chosen. Specically, fixed cost is equal to 6522. Find the monopolist's prots if a low-oualitv design is chosen. as? 018 024 010 Question 13 3 pts A monopolist faces the following inverse demand curve: P={362Q]z where P is price. (1 is her total output and z is the dualityr of product sold. 2 can take on onlyr one of two values. The monopolist can choose to market a lowduality.r product for which 7.21 or a high guaiitv product where 222. Marginal cost if independent of duality.r and constant at zero. Fixed cost, however. depends on the product design and increases with the dualitv chosen. Specically. xed cost is equal to $522. Find the monopolist's prots if a highagualitvr design is chosen. gas 01o {3:14 054 Question 14 3 pts A monopolist faces the following inverse demand curve: P={36EQ}Z where P is price, (1 is her total output and z is the duality.r of product sold. 2 can take on onlyr one of two values. The monopolist can choose to market a lowquality product for which 7.21 or a high qualitv product where 222. Marginal cost if independent of dualityr and constant at zero. Fixed cost, however, depends on the product design and increases with the qualitv chosen. Specicallv, fixed cost is equal to $522. Which should the monopolist choose? C) High quality 0 Low gualitvr Question 15 3 pts |Crepe Creations {CC} is considering franchising its unique brand of crepes to stallholders on Hermoza Beach, which is four miles long. CC estimates that. on an average day. there are LOUD sunbathers evenlyr spread along the beach and each sunbather will buy one crepe per dayr provided that the price plus any.r disutilitvr cost does not exceed $5. Each sunbather incurs a disutility cost of getting up from resting to get a crepe and returning to their beach spot of 25 cents for everyr 1,4. mile the sunbather has to walk to get to the CC stall. Each crepe costs $0.31 to make and CC incurs a $40 overhead cost per dayr to operate a stall. What price should CC charge if it onlyr has one store\"? 0 $4.25 0 3 O $5 0 $3.525
