What range of the payments will the farmer accept

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Reference no: EM13160203

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

$7.00

$10.00

$10.00

$17.00

$1.00

$1.00

$16.00

2

$5.00

$12.00

$9.00

$19.00

$31.00

$3.00

$4.00

$27.00

3

$3.00

$15.00

$8.00

$27.00

$42.00

$5.00

$9.00

$33.00

4

$1.00

$16.00

$7.00

$34.00

$50.00

$7.00

$16.00

$34.00

5

($1.00)

$15.00

$6.00

$40.00

$55.00

$9.00

$25.00

$30.00

6

($3.00)

$12.00

$5.00

$45.00

$57.00

$11.00

$36.00

$21.00

7

($5.00)

$7.00

$4.00

$49.00

$56.00

$13.00

$49.00

$7.00

8

($7.00)

$0.00

$3.00

$52.00

$52.00

$15.00

$64.00

($12.00)

9

($9.00)

($2.00)

$2.00

$54.00

$52.00

$17.00

$81.00

($36.00)

 

 

Question 2

 

Some fields have large enough qualities of both oil and natural gas that coordination must be achieved for the production of both. rather than oil alone as in our examples. Will fields with both oil and gas have greater difficulties in unitization, than the fields with oil or gas alone? Explain.

Reference no: EM13160203

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