What is the gain from cooperation if they trade services

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Anne and Beth work for NET Financial (firm that sells Economic Forecasting Services - EFS). Their productivity measures and constraints per 40 hour work week are: Anne is capable of selling 10 EFS contracts she is capable of underwriting 20 EFS contracts; Beth is capable of selling 32 EFS contracts she is capable of underwriting 40 EFS contracts. Commission on the sale of an EFS contract is $500 per contract, and the underwriting fee for an EFS contract is $1000. To receive payment, the forecasting contract has to be sold and underwritten in the same week. What is the Maximum amount Anne and Beth can make per week working alone? What is the Gain from Cooperation if they trade services? What happens to the Dead Weight Loss if they cooperate? Explain the compensation payment necessary between Anne and Beth to get Cooperation? Show your table of calculations.

Reference no: EM132134083

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