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- 3) A SIMPLE MODEL OF MOVIE-LAUNCH TIMING Consider the following model of how movie studios might think about the optimal timing of launching a movie (and thereby entering a market). Suppose there are two studios (or movies), X and Y, and there are two holiday weekends, 1 and 2. In weekend 1, there is a total of 8 movie fans, evenly divided into regular moviegoers {A,B,C,D} and occasional moviegoers {E,F,G,H}. In weekend 2, there is a total of 8 movie fans, evenly divided into the same regular moviegoers from before {A,B,C,D} and new occasional moviegoers {I,J,K,L}. All fans want to watch movies (produced at zero cost) and the price per ticket is $1. How should we envision demand? Suppose that all moviegoers will watch a movie that they have not seen before, but will never watch a movie for a second time. Also suppose that if two previously-unseen movies are available, the customers will "flip a coin" and be split evenly, with alphabetically-earlier moviegoers choosing X and others…Decide the best choice. a. The inndividual waiting times experienced by customers in a busy breakfast cafe would be an example of a deterministic process because several customers are waiting to be seated. b. Informmation Systems and Informmation Technology are identical and synonyms that mean the exact same thing. c. In 2019, both manuffacturing and service sectors employed roughly the same percentage of the labor force in USA. d. Today, services constitute a large percentage (e.g., more than 60%) of the U.S. economy. e. Both choices ‘a’ and ‘b’ are correct.2. What was Airbnb's response to the COVID-19 pandemic? Does it appear that the company's business model is more resilient than that of its hotel chain rivals?
- You read about a traveling situation in which some airline passengers seem toget a “fast pass” through security and move effortlessly through the boarding process, while other passengers are waiting in long lines. In this example, the travellers who are moving quickly through the boarding process are probably: a) VIP passengers waiting longer more in an inconvenient lines b) Passengers who value time and convenience and are willing to pay additional fees for the privileges and other services c) Loyal passengers whom they knew beforehand in which line to go to avoid delays and inconveniences d) Government officials who are seated in the executive area20) This decision tree represents the expected profits and the standard deviations associated with three decisions facing a mobile phone producer (All figures are in millions of dollars). The root node (the one on the left) represents the decision of whether to produce the phones in China or North America. The second pair of nodes represent the decision of whether to market the phones in China or North America; and the final nodes represent the choice of selling price: if the phones are sold in China, they will be sold for either $30 or $40, whereas if they are sold in North America, they will be sold for either $40 or $50. Based on the calculated values, what is the company's best strategy? Mean $30 1.250, sd 750 Sell China $40 Mean 375, sd = 625 Make in China Mean= -1,000, sd = 1,500 $40 Sell NA S50 Mean =-1,500, sd = 1,250 Sell China $30 $40 Make in NA Mean 1,250, sd.- 2,137 Sell NA $40 S50 Mean --250, sd-1.639Can you change the payoffs in the table to the right so that the firms choose to invest in safety? Each firm must consider how safe to make its plant. Extra safety is costly. Safety investments-sprinkler systems, color-coded switches, fire extinguishers-by one firm provide an externality to other firms: That firm's lower incidence of accidents reduces the wage that all firms in the industry must pay. Because each firm bears the full cost of its safety investments but derives only some of the benefits, the firms underinvest in safety. It will be a Nash equilibrium for both firms to invest in safety if O A. the payoffs for both firms investing increase to $750 and the payoffs for both firms not investing decrease to $50. O B. the payoffs for both firms investing go to $0. O C. the payoffs for both firms investing increase to $750. O D. the payoffs for both firms investing increase to $350 and the payoffs for both firms not investing decrease to $50. O E. the payoffs for both firms not…
- Can you change the payoffs in the table to the right so that the firms choose to invest in safety? Each firm must consider how safe to make its plant. Extra safety is costly. Safety investments-sprinkler systems, color-coded switches. fire extinguishers-by one firm provide an externality to other firms: That firm's lower incidence of accidents reduces the wage that all firms in the industry must pay. Because each firm bears the full cost of its safety investments but derives only some of the benefits, the firms underinvest in safety. It will be a Nash equilibrium for both firms invest safety if O A. the payoffs for both firms investing increase to $750 and the payoffs for both firms not investing decrease to $50. O B. the payoffs for both firms investing go to $0. OC. the payoffs for both firms investing increase to $750. O D. the payoffs for both firms investing increase to $350 and the payoffs for both firms not investing decrease to $50. O E. the payoffs for both firms not investing…Suppose you have two types of users for your software: basic users and professionals. The value each group places on your basic program and your advanced program is given in the table below. Value of Product basic users Professionals basic program $65 $60 advance program $75 $150 You don’t know who exactly your basic and professional users are. How might you price your advanced program so that only your professionals by that version and you maximize profits? Group of answer choices $144 $150 $65 $75In a bygone day, airlines issued discount tickets to students who would be willing to fly on a particular day,with no notice, at a discounted price, one needed to show proof of being of student. The students would have to fly "standby", if and only if there was an available seat, only on that day. Students were able to obtain these tickets, make fictitious reservations, cancel the reservations at the last minute, and secure a seat on the flight at a discounted price. Would this effort fail on the part of airlines? Why (use conditions of price discrimination in your explanation)?
- A. (1) A large American oil company has just reported a major oil spill. How would one go about systematically analysing the impact of the public release of this information on the oil company's market value? (2) If you wanted to analyse the impact of such events on the value of oil companies globally, what things would you do differently from question (1) above. B. Dr. Gambles has a utility function given as U(w)=In(w). Due to the pandemic affecting his consulting business, Dr Gambles faces the prospect of having his wealth reduced to £2 or £75,000 or £100,000 with probabilities of 0.15, 0.25, and 0.60, respectively. Suppose insurance is available that will protect his wealth from this risk. How much would he be willing to pay for such insurance? C. Explain the concept of iso-expected return lines, iso-variance ellipses, and the critical line and describe how these are useful in identifying the minimum variance frontier and the efficient frontier.You are managing a competitive corn farm that faces random demand. You must decide how much corn to produce before observing the actual price. As the 2 adjacent figure shows, the price will be $12 or $6 per bushel. The probability the price will be $12 is and the probability that the price will be $6 is - Your MC 3 3 $14 marginal cost curve is also included in the figure. PH=MRH $12 The quantity of corn that maximizes expected profit is bushels. $10 (Carefully enter your response considering the units on the axes of the given figure.) S8 The quantity you would produce if you knew the actual price was $12 is bushels. L= MRL The quantity you would produce if you knew the actual price was $6 is bushels $6 Suppose you produce the quantity of corn that maximizes expected profit, compared to what you would produce if you knew the actual price before producing. $4- The amount of profit lost if the actual price is $12 is $ The amount of profit lost if the actual price is $6 is $ (Enter a…Duolingo is a widely used foreign language app, with 300 million users in 2018. While there is a free version of the app, a premium Duolingo subscription eliminates advertisements during language practice and offers new quizzes with the ability to save lessons for offline use. a. Identify each hurdle for users of the free version of the app. the advertisements that users of the free version must endure the absence of enhanced features-new quizzes and the ability to save lessons for offline use-enjoyed by users of the premium version the subscription fee paid for the premium version of the app b. By offering both a free and a premium version of the app, Duolingo profits more than it would if it offered just one version of the app. O profits only from the free version, not the premium version. O profits only from the premium version, not the free version. O profits less than it would if it offered just one version of the app.