What is the pareto optimal quantity of flowers

Reference no: EM131774219

Question: There are three consumers A, B and C. Consumer A is willing to pay 40-.25F dollars for a unit of flowers for the public square, B is willing to pay 75-.25F dollars for a unit of flowers, and C is willing to pay 60-.25F for a unit of flowers. If the cost of flowers is constant at $100 per unit what is the pareto optimal quantity of flowers to put in the square? Suppose that individual A pays $25 per unit, individual B pays $50 per unit cost and C pays $25. Will the group unanimously agree to the efficient level of F? If not, what must each person pay per unit for agreement to occur? Now suppose that individual B lies about his preferences; stating a willingness to pay of 30-.25F. If unanimous agreement occurs how many units of flowers are provided and what does each person pay? Compare this situation to the case where each tells the truth.

Reference no: EM131774219

Questions Cloud

Find depreciation expense using sum-of-years-digits method : Compute 2010 depreciation expense using the sum-of-the-years'-digits method assuming the machinery was purchased on April 1, 2010

Explain the impact of a monetary expansion : Use standard AD-AS and IS-LM analysis to illustrate and explain the impact of a monetary expansion in the short run and in the medium run.

Three step process consisting of mixing-forming-packaging : The Peeps factory can be described as a three step process consisting of Mixing, Forming, and Packaging.

Hospital performs both preventive and corrective maintenance : The seven-person maintenance function at a hospital performs both preventive and corrective maintenance on hundreds of items each month.

What is the pareto optimal quantity of flowers : There are three consumers A, B and C. Consumer A is willing to pay 40-.25F dollars for a unit of flowers for the public square, B is willing to pay 75-.25F.

Describe how supply chain optimization : Describe how supply chain optimization can help the supply chain function in a more smooth, timely, and cost-effective manner.

Operating characteristics for this waiting line system : What are the operating characteristics for this waiting line system?

Conditions under which quantity favored by the median voter : There are three consumers A, B and C. Consumer A is willing to pay 8-3F dollars for a unit of flowers for the public square, B is willing to pay 2-3F dollars.

Compute the book value of the mineral mine structures : In 2006, Marion Company purchased land mineral mine $1,600,000, Compute the book value of the mineral mine structures and equipment as of Dec. 31, 2007

User Account

All Pages