What is the most contractor can charge to pave the driveway

Assignment Help Business Economics
Reference no: EM131388863

Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it.

What is the most a contractor can charge to pave the driveway and still be assured of being hired by at least one of them?

A) $600

B) $900

C) $1,500

D) $2,400

Reference no: EM131388863

Questions Cloud

Net exports are to changes in interest rates : Why will there be less crowding out of private spending by government spending the less sensitive consumption, investment, and net exports are to changes in interest rates?
Price elasticity of demand at the equilibrium price-quantity : Consider the market for laptop computers. The demand for laptops is Q = 1800 – 3P. Suppose the supply of laptops is given by Q = –200 +2P. What is the equilibrium price of laptops? What is the price elasticity of demand at the equilibrium price and q..
Two alternative options are equally profitable for the robot : Suppose that you are bargaining against a robot that is programmed to choose a strategy that maximizes its own profit against rational opponents. If two alternative options are equally profitable for the robot, it will toss a fair coin to decide what..
When the federal government borrows money : If one state is suffering from acid rain as a result of sulfur dioxide emissions from the industries in a neighboring state, then: When the federal government borrows money, the resulting ______ in interest rates will lead private investment to _____..
What is the most contractor can charge to pave the driveway : Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both..
For fixed percent reduction in pollution emissions : For a fixed percent reduction in pollution emissions to be economically efficient, it would have to be the case that
Time-inconsistency problem : Describe the short run and long run equilibrium in a monopolistically competitive market. An open market purchase of securities will always cause the equilibrium Fed Funds rate to fall. The "time-inconsistency problem" is less likely to occur when th..
The marginal cost of producing strudel : Sally’s Strudel is a located in a small town that has no other strudel producers. Market research indicates that the weekly inverse demand for a strudel would be P=8-(1/50)Qd , where P is price and QD is quantity demanded. The marginal cost of produc..
Monopoly causes dead weight loss : We all know that monopoly causes dead weight loss; therefore monopoly means a loss for the society. Now, if a patent gives a firm monopoly power. why does the government give out patents? Explain.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd