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# Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand ...

wrote...
Posts: 344
6 days ago

Table 16-3

 Potential Customer Willingness to Pay (dollars per hour) Arun $8 Bernice 9 Cara 10 Dawn 12 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

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Answer verified by a subject expert
krobdancekrobdance
wrote...
Posts: 300
6 days ago
wrote...
6 days ago

Table 16-3

 Potential Customer Willingness to Pay (dollars per hour) Arun $8 Bernice 9 Cara 10 Dawn 12 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

wrote...
6 days ago
 $2 wrote... 6 days ago  Smart ... Thanks! wrote... 6 days ago Table 16-3  Potential Customer Willingness to Pay (dollars per hour) Arun$8 Bernice 9 Cara 10 Dawn 12

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

wrote...
6 days ago
 4 hours; total revenue = $28 wrote... 6 days ago Table 16-3  Potential Customer Willingness to Pay (dollars per hour) Arun$8 Bernice 9 Cara 10 Dawn 12

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. wrote... 6 days ago  It is constant at$7.
wrote...
6 days ago
 This helped my grade so much
wrote...
6 days ago
wrote...
6 days ago

Table 16-3

 Potential Customer Willingness to Pay (dollars per hour) Arun $8 Bernice 9 Cara 10 Dawn 12 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  ¯\_(ツ)_/¯ wrote... 6 days ago $11
wrote...
6 days ago

Table 16-3

 Potential Customer Willingness to Pay (dollars per hour) Arun $8 Bernice 9 Cara 10 Dawn 12 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.

 12 New Topic