Scenario 15-6 The concert promoters of a heavy-metal band, W…

Scenario 15-6 The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die- hard fans and casual fans. For a particular WeR2Loud concert, there are 1,000 die-hard fans who will pay $150 for a ticket and 500 casual fans who will pay $50 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc.   Refer to Scenario 15-6. How much profit will the concert promoters earn if they set the price of each ticket at $150?  $75,000 $100,000 $150,000 $175,000

Karen’s cat causes Danny to Karen values her cat’s companion…

Karen’s cat causes Danny to Karen values her cat’s companionship at $300 per year. The cost to Danny of tissues and her allergy medication is $350 per year. Based on the Coase theorem,   Karen should pay Danny $350 for tissues and allergy medication Danny should pay Karen $325 to give away her cat Danny should move to another location Karen should pay Danny $400 so that she may keep her cat

An example of an explicit cost of production would be the…

An example of an explicit cost of production would be the   1.  cost of labor earnings from a previous job for an entrepreneur.   2.  lost opportunity to invest in capital markets when the money is invested in one’s business.   3.  lease payments for the land on which a firm’s factory stands.   4.  Both a and c are correct.