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lbelcher lbelcher
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Posts: 482
Rep: 20 0
4 years ago

Table 16-3

Potential CustomerWillingness to Pay (dollars per hour)
Arun$8
Bernice  9
Cara10
Dawn12

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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krobdancekrobdance
wrote...
#1
Posts: 396
Rep: 63 0
4 years ago
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1
wrote...
#2
4 years ago

Table 16-3

Potential CustomerWillingness to Pay (dollars per hour)
Arun$8
Bernice  9
Cara10
Dawn12

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...
#3
4 years ago

$2
wrote...
#4
4 years ago
Smart ... Thanks!
wrote...
#5
4 years ago

Table 16-3

Potential CustomerWillingness to Pay (dollars per hour)
Arun$8
Bernice  9
Cara10
Dawn12

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
4 years ago

4 hours; total revenue = $28
wrote...
#7
4 years ago

Table 16-3

Potential CustomerWillingness to Pay (dollars per hour)
Arun$8
Bernice  9
Cara10
Dawn12

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...
#8
4 years ago

It is constant at $7.
wrote...
#9
4 years ago
This helped my grade so much
wrote...
#10
4 years ago
Perfect
wrote...
#11
4 years ago

Table 16-3

Potential CustomerWillingness to Pay (dollars per hour)
Arun$8
Bernice  9
Cara10
Dawn12

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...
#12
4 years ago

$11
wrote...
#13
4 years ago

Table 16-3

Potential CustomerWillingness to Pay (dollars per hour)
Arun$8
Bernice  9
Cara10
Dawn12

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.
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