Reference no: EM13160203

Question 1

 

What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day? Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept? Assuming that the beekeeper gets that amount, what range of the payments will the farmer accept? (Remember that negative payments are also possible.) Answer the same questions for the fifth day.

 

DAY	MARGINAL PROFIT IN HONEY	TOTAL PROFIT IN HONEY	MARGINAL PROFIT IN APPLES	TOTAL PROFIT IN APPLES	PROFIT FROM HONEY + APPLES	MARGINAL LOSS TO WRITER	TOTAL LOSS TO WRITER	HONEY + APPLE PROFITS LOSS WRITER'S LOSS
1	$7.00	$7.00	$10.00	$10.00	$17.00	$1.00	$1.00	$16.00
2	$5.00	$12.00	$9.00	$19.00	$31.00	$3.00	$4.00	$27.00
3	$3.00	$15.00	$8.00	$27.00	$42.00	$5.00	$9.00	$33.00
4	$1.00	$16.00	$7.00	$34.00	$50.00	$7.00	$16.00	$34.00
5	($1.00)	$15.00	$6.00	$40.00	$55.00	$9.00	$25.00	$30.00
6	($3.00)	$12.00	$5.00	$45.00	$57.00	$11.00	$36.00	$21.00
7	($5.00)	$7.00	$4.00	$49.00	$56.00	$13.00	$49.00	$7.00
8	($7.00)	$0.00	$3.00	$52.00	$52.00	$15.00	$64.00	($12.00)
9	($9.00)	($2.00)	$2.00	$54.00	$52.00	$17.00	$81.00	($36.00)

 

 

Question 2

 

Some fields have large enough qualities of both oil and natural gas that coordination must be achieved for the production of both. rather than oil alone as in our examples. Will fields with both oil and gas have greater difficulties in unitization, than the fields with oil or gas alone? Explain.