There are seven consumers, each of whom is hungry for exactly one Butterfinger. The consumers’ maximum willingness to pa

[answerhappygod]

There are seven consumers, each of whom is hungry for exactly
one Butterfinger. The consumers’ maximum willingness to pay is
given in the table below:

There Are Seven Consumers Each Of Whom Is Hungry For Exactly One Butterfinger The Consumers Maximum Willingness To Pa 1 (23.91 KiB) Viewed 29 times

a. Suppose that the data in the table are points on a continuous
demand function. Determine the equation of this function.

b. Suppose that you are a monopoly seller of Butterfingers, which
you can produce at a constant marginal and average total cost of $
2. Suppose you charge every customer the same price for
Butterfingers. What price should you set to maximize your profit?
How many Butterfingers will you sell? Calculate your profit.
Calculate the consumer surplus received by the buyers. Calculate
the deadweight loss.
Calculate the answers using the demand function found in a.

c.Suppose that every customer that comes into your Butterfinger
store has their maximum willingness to pay displayed in neon on
their foreheads. You decide to use this information to increase
your profit by practicing first-degree price discrimination. How
many Butterfingers will you sell? Calculate your profit. Calculate
the consumer surplus received by the buyers. Calculate the
deadweight loss. Again, calculate the answers using the demand
function found in a.
Consumer (age, gender) Maximum Willingness to Pay Marge (34, female) $2 Homer (38, male) 4 Lisa (6, female) 5 Maggie (2, female) 6 Ned (46, male) 1 Krusty (55, male) 3 Bart (9, male) 7