Consider an airline trying to sell plane tickets to business travellers and tourists. Theairline cannot distinguish between the two at the point of sale, but knows that ingeneral, business travelers have higher willingness to pay for better seats. Let PF and PC be the price of first class and coach tickets respectively. Suppose that businesstravelers are willing to pay $1000 for a first class seat and $400 for a coach seat, where as tourists are willing to pay $500 for a first class seat and $300 for a coach seat.

What are the information rents that the airline must leave to business travelers? What is the price of a first class seat?

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?

After testing its water, a city water department issues a report to the related citizens, noting what chemicals have been identified, their doses, and the estimated risks of exposure at these levels. this report represents a type of

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear