Dell offers quantity discounts on Wireless Noise Cancelling…

Dell offers quantity discounts on Wireless Noise Cancelling Headphone. The price for the first 30 Headphones is $40.00 per Headphone. After the first 30, all additional Headphones purchased, are offered at a discounted price of $5 each. Suppose that Hannah Inc’s inverse demand curve for Headphones is given by P = 60 – Q. How many Headphones will Hannah Inc purchase?

John is selling hand made shirts on Amazon. The shirts are c…

John is selling hand made shirts on Amazon. The shirts are currently priced at $20/shirt. John is not happy with her current revenue stream and asks Brad for advice. Brad estimates that the demand John’s shirts is: Q = 1000 – 10P (P = 100 – 0.1Q). If John is looking to maximize revenue, what should Brad’s recommendation be?

Baked and Wired is a popular bakery in Washington, D.C.  kno…

Baked and Wired is a popular bakery in Washington, D.C.  known for their pastries. Bakeries (and pastries shops in particular) are a (perfectly) competitive business in Washington, D.C . At their current level of production, Baked and Wired estimates the following for its standard pastry: P = $4 AVC = $2 ATC = $5 MC = $3 Given your knowledge of economics and using the given values above, which of the following should Baked and Wired do? (Assume all cost curves have their typical u-shapes.)

TJ Brown currently has a ticket to the West Virginia vs. Vir…

TJ Brown currently has a ticket to the West Virginia vs. Virginia Tech football game. This ticket has already been paid for and cannot be sold or transferred to anyone else.  Originally, the ticket cost to the game cost Brown $250 and getting from Brown’s house to the game will cost him an additional $70. He is a huge college football fan trying to set the record for most college football games attended in a season (true story!). As a result, his maximum willingness to pay for the West Virginia vs. Virginia Tech game is $900.  However, scheduled the same day as the college football game is a touring production of Hamilton that Brown’s friend is going to. His friend asks him to accompany him to Hamilton, but doing so would require purchasing a Hamilton ticket for $70 and also missing the college football game. In addition, it would cost $10 in transportation fees to get to the theater where Hamilton is showing. Brown’s maximum willingness to pay for the Hamilton ticket is $300. Given all this information what is the total economic cost to Brown of attending the Hamilton production?