German brothels recently began offering a monthly subscription service for multiple purchasers. If you thought that...

German brothels recently began offering a monthly subscription service for multiple purchasers. If you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral?

Suppose a particular patron at a German brothel has the following willingness-to-pay schedule for services at the brothel, per session.

Session	Willingness to Pay
1st	$77
2nd	$66
3rd	$55
4th	$44
5th	$33
6th	$22

Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the brothel, per session, is constant at $11.

At a price of $71.50 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is and producer surplus is .

Suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service, whereby consumers can pay a flat fee of $237.60 and can have up to 6 sessions total.

Using this subscription pricing model, this consumer would demand ____ sessions. Under this scenario, consumer surplus isand producer surplus is. (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)

Expert Solution

Rahul Sunny answered 1 year ago

2. Individual Problems 14-2 German brothels recently began offering a monthly subscription service for multiple purchasers....

2. Individual Problems 14-2 German brothels recently began offering a monthly subscription service for multiple purchasers. If you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? Suppose a particular patron at a German brothel has the following willingness-to-pay schedule for services at the brothel, per session. Session Willingness to Pay 1st $70 2nd $60 3rd $50 4th $40 5th $30 6th $20 Suppose this consumer...

In 2011, Netflix customers’ service fees increased by 60%. Netflix discontinued a subscription offering DVD rentals...

In 2011, Netflix customers’ service fees increased by 60%. Netflix discontinued a subscription offering DVD rentals and unlimited video streaming for $9.99 per month; DVDs and streaming would be separated, with each costing subscribers $7.99 a month ($15.98 for both). This strategic decision occurred as video streamed via the Internet was slowly replacing discs. However, now customers wanting both services had to juggle two accounts, and Netflix lost around 800,000 subscribers. Assume that you are director of product pricing at...

A restaurant recently began offering free dessert on Monday nights with the order of any dinner...

A restaurant recently began offering free dessert on Monday nights with the order of any dinner menu item. Before the offer, the mean number of dinner customers on Monday nights was 106. Following are the numbers of diners on 12 different days after the offer went into effect. 98 121 124 112 94 108 128 118 123 120 119 124 Using a significance level of α = 0.05, can we conclude that the mean number of diners on Monday night...

How would you evaluate the market potential of a subscription service to Uber Eats in Vancouver...

How would you evaluate the market potential of a subscription service to Uber Eats in Vancouver using tools from our class? Please answer this question in minimum 3 pages of the microsoft word.

how do you determine product offering for customer need and requirement for product and service.

Have you ever thought of starting your own small business? Think of a good or service...

Have you ever thought of starting your own small business? Think of a good or service you might like to provide to your community. Then, describe how you would supply the good or service. How would you go about estimating demand for your good or service? Evaluate whether there would be enough demand for there to be a “market” for your good or service.

E-Loan,an online lending service recently offered 60-month auto loans at 6% compounded monthly to applicants with...

E-Loan,an online lending service recently offered 60-month auto loans at 6% compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $339,how much can you borrow from E-Loan? What is the total interest you will pay for this loan?

Think of a project that you recently began or considered beginning. What did you tell yourself...

Think of a project that you recently began or considered beginning. What did you tell yourself when you began the project or failed to begin the project? Think of a time you were feeling lonely. What were you telling yourself at that time? Think of a day when you were feeling stressed or overwhelmed at work or school. What were you telling yourself at that chaotic time? Think of a criticism you recently received from a fellow student, coworker, boss...

You are attempting to arrive at what the monthly rate of change that has recently occurred...

You are attempting to arrive at what the monthly rate of change that has recently occurred in the real estate market. In doing some research, you find two properties that have sold twice with the last two years. Property A sold proerties months ago for $98,500; it sold last week for $108,000. Property B sold 20 months ago for $105,000; it sold two weeks ago for $113,500. A comparable property sold 12 months ago for $102,000. Use the information above...

You recently began an internship in the accounting department of Front Range Furniture. As your first...

You recently began an internship in the accounting department of Front Range Furniture. As your first assignment you were asked to perform a cost analysis and reporting for the year ended December 31, 2019. Advertising expense $22,250 Direct labor $564,500 Depreciation expense – Office Equip $10,440 Income taxes expense $138,700 Depreciation expense – Selling Equip. $ 12,125 Indirect labor $61,000 Depreciation expense – Factory Equip. $37,400 Misc. Production costs $10,400 Factory supervision $123,400 Office salaries expense $ 72,875 Factory supplies...

Question