Biology Forums - Study Force

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.

Refer to Table 16-3. If Julie charges $10 per hour, how many hours of pet sitting services will be purchased and by whom?

2 hours (1 hour by Cara and 1 hour by Dawn)

1 hour by Dawn only

3 hours (1 hour each by Arun, Bernice, and Cara)

1 hour by Cara only

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.

Refer to Table 16-3. If Julie charges $10 per hour, what is the value of the consumer surplus received by Dawn?

$2

$10

$12

$22

$2

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.

Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7. How many hours will be purchased and what is her total revenue?

5 hours; total revenue = $35

4 hours; total revenue = $28

3 hours; total revenue = $21

2 hours; total revenue = $14

4 hours; total revenue = $28

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.

Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7 per hour. What is her marginal revenue?

It is constant at $7.

It is $7 for the first hour and starts declining thereafter.

It coincides with the figures in the table; $12 for the first hour, $10 for the second, $9 for the third, and $8 for the fourth.

It is $7 for the first hour and starts increasing thereafter.

It is constant at $7.

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.

Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7. What is the value of the consumer surplus enjoyed by her customers?

$39

$28

$11

$0

$11

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.

Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges each customer according to his or her willingness to pay instead of a uniform price of $7. Which of the following statements is true?

Julie's customers are better off because their consumer surplus has increased.

Julie has converted the consumer surplus (from a uniform price) into economic profit.

Julie's has converted the producer surplus (from a uniform price) into consumer surplus.

Julie is worse off because the demand for her services is reduced.

Julie has converted the consumer surplus (from a uniform price) into economic profit.