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Question 1
What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day? Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept? Assuming that the beekeeper gets that amount, what range of the payments will the farmer accept? (Remember that negative payments are also possible.) Answer the same questions for the fifth day.
DAY
MARGINAL PROFIT IN HONEY
TOTAL PROFIT IN HONEY
MARGINAL PROFIT IN APPLES
TOTAL PROFIT IN APPLES
PROFIT FROM HONEY + APPLES
MARGINAL LOSS TO WRITER
TOTAL LOSS TO WRITER
HONEY + APPLE PROFITS LOSS WRITER'S LOSS
1
$7.00
$10.00
$17.00
$1.00
$16.00
2
$5.00
$12.00
$9.00
$19.00
$31.00
$3.00
$4.00
$27.00
3
$15.00
$8.00
$42.00
$33.00
4
$34.00
$50.00
5
($1.00)
$6.00
$40.00
$55.00
$25.00
$30.00
6
($3.00)
$45.00
$57.00
$11.00
$36.00
$21.00
7
($5.00)
$49.00
$56.00
$13.00
8
($7.00)
$0.00
$52.00
$64.00
($12.00)
9
($9.00)
($2.00)
$2.00
$54.00
$81.00
($36.00)
Question 2
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