How many tents will karen rent under new pricing strategy

Reference no: EM13208942

Karen is planning her wedding and needs to rent tents for an outdoor reception. The middle column in the following table reflects Karen's total benefits, or her total willingness to pay for tent rentals. The third column shows the total cost associated with renting from a local tent company.

Total Number of Tents Total Benefit Total Cost

1 $ 1,800 $ 1,400
2 $ 3,300 $ 2,800
3 $ 4,500 $ 4,200
4 $ 5,400 $ 5,600
5 $ 6,000 $ 7,000
6 $ 6,400 $ 8,400

1)The optimal number of tents for Karen to rent is:

A. Two tents

B. Three tents

C. Four tents

D. Five tents

E. Six tents

2) Which of the following statements is true?

A. Karen's marginal benefits associated with renting additional tents increase.

B. Karen's marginal benefits associated with renting additional tents are constant.

C. Karen's marginal benefits associated with renting additional tents decrease.

3) Which of the following statements is true?

A. The marginal cost associated with renting additional tents increases.

B. The marginal cost associated with renting additional tents is constant.

C. The marginal cost associated with renting additional tents decreases.

4) The company from which Karen is renting decides to try a new pricing strategy whereby the additional cost falls as more tents are rented. The following chart details Karen's total willingness to pay and the total cost of renting tents under the company's new pricing guidelines:

Total Number of Tents Total Benefit Total Cost

1 $ 1,800 $ 1,600
2 $ 3,300 $ 3,000
3 $ 4,500 $ 4,100
4 $ 5,400 $ 4,900
5 $ 6,000 $ 5,600
6 $ 6,400 $ 6,100

How many tents will Karen rent under the new pricing strategy?

Reference no: EM13208942

Questions Cloud

Define the electrical conductibities of sodium chloride : Compare the electrical conductibities of Sodium Chloride (NaCl), ammonium nitrate (NH4NO3), calcium sulfate (CaSO4), and distilled water. Account for any differences noted in the electrical conductivities of these compounds.

Define change the vaule of the equilibrium constant : Which of the listed perturbations would change the vaule of the equilibrium constant for the following reaction?

What is the optimal number of lures and guitar : a. What is the optimal number of lures and guitar picks for Anthony to purchase How much utility does this combination bring him b. If the price of guitar picks doubles to $2, how much income must Anthony have to maintain the same level of utility

Compute the ph of soultion prepared by a buffer : calculate the ph of soultion prepared by adding20.0ml of 0.100m hcl to 80.0ml of a buffer that is comprised pf 0.25 M NH2NH2

How many tents will karen rent under new pricing strategy : The company from which Karen is renting decides to try a new pricing strategy whereby the additional cost falls as more tents are rented. The following chart details Karen's total willingness to pay and the total cost of renting tents under the co..

Define sphosphate to fructose-phosphate in the liver : Which of the following inhibits the enzyme that converts the conversion of fructose-1,6-bisphosphate to fructose-6-phosphate in the LIVER.

State soluble in acidic solution than in pure water : which of the following will be more soluble in acidic solution than in pure water?

Determine the revenue maximizing price and output : Weekly demand and cost relations for Sandpiper Products, Inc., are given by the equations P = $180 - $10Q (Demand) TC = $75,000 + $5Q + $7.5Q2 Where Q is the quantity produced and sold per week.

Explain density of liquid water at room temperature : Find vapor pressure and density of liquid water at room temperature; state your source. Calculate the new vapor pressure of water at the same temperature when 740 torr of dry

User Account

All Pages