Question:

For now, suppose that the tennis coaches compete for lessons, and they do not coordinate with each other.

A. (2 points) What is the price of a lesson and the quantity of lessons booked per week?

B. (3 points) Compute the consumer surplus of people booking tennis lessons (per week). Show graphically which area the consumer surplus reflects (this does not need to be scaled correctly - just a sketch with appropriately labeled lines and axes is sufficient).

Now suppose that all tennis coaches in Venice form an association, and they now coordinate on pricing. The cost per lesson is unchanged.

C. (4 points) What is the profit-maximizing price per lesson that the tennis coach association should charge? What is the corresponding number of lessons that will be booked each week in total?

D. (4 points) Compute the consumer surplus of people booking tennis lessons (per week) under this new pricing. What is the dead weight loss? Show graphically which area the consumer surplus and dead weight loss reflect (as before, this does not need to be scaled correctly - just a sketch with appropriately labeled lines and axes is sufficient).

E. (3 points) The city now introduces a weekly fee of $5,000 that the Venice tennis coach association has to pay for the use of the tennis courts (independent of how many lessons are being offered). How does this fee affect the price per lesson that the association charges? Should the association continue to offer lessons in the long run?

Q1: (Hypothetical) In IIIE total 800 students applied in MSc programs, 200 in IBF, 250 in Economics and 350 in Economics and Finance program. A test of 100 marks was conducted for admission into these degree programs. Note Following information: marks obtained by Economics students are normally distributed with mean 60 marks and SD 12marks marks obtained by Economics and Finance students are normally distributed with mean 58 marks and SD 13marks Now answer following questions: L How many of the economics students obtained marks between a 35 and 65 b. 20 and 80 C. 5 and 95 ii. Grade "A" is assigned to student who obtained marks 80 or more, how many students of Economics and finance got "A" grade? Suppose in previous MSc IBF class there were 20 students, out of which 5 were foreigners. Suppose 5 students are randomly selected for a group discussion on Islamic and Conventional Banking. What is the probability that a. Exactly three foreigners students are selected b. Less than three foreigners students are selected c. At least three foreigners students are selected d. At most three foreigners students are selectedRussia witnessed a shift in its balance of trade to more of a deficit position. What can we attribute this to? (select the most complete answer below). Interest rates in Russia increased. The Russian Ruble appreciated in value leading to higher levels of Russian exports abroad leading to this shift in their balance of trade to more of a deficit position. O2 Interest rates in Russia.decreased. The Russian Ruble appreciated in value leading to higher levels of Russian exports abroad leading to a shift in their balance of trade to more of a deficit position. Interest rates in Russia decreased. The Russian Ruble depreciated in value leading to higher levels of Russian imports from abroad leading to a shift in their balance of trade to more of a deficit position. Interest rates in Russia increased. The Russian Ruble appreciated in value leading to higher levels of Russian imports from abroad leading 4. to a shift in their balance of trade to more of a deficit position.D Question 16 2 pts Net Income is not a reliable measure of a company's cash flows because it: includes non-cash items / excludes cash flows related to working capital includes non-cash items / includes cash flows related to working capital excludes non-cash items / excludes cash flows related to working capital excludes non-cash items / includes cash flows related to working capital None of these answers2. The purpose of this problem is to derive the pdf of the t distribution. (a) Find the joint pdf of (Z, W). (b) Consider the bivariate transformation Z T = hi (Z, W) = VW / v U = h2(Z, W) =W. Find the joint pdf of (T, U). Hint: Note that h = (h1, h2) is a one-to-one bivariate transformation. To find the joint pdf use the techniques of Section 6.6. (c) Find the marginal pdf of T. Hint: Remember our trick for integrating the gamma density