Chang industries has 2,700 defective units of product that have already cost $14.70 each to produce. a salvage company will purchase the defective units as they are for $5.70 each. chang's production manager reports that the defects can be corrected for $5.30 per unit, enabling them to be sold at their regular market price of $22.40. the incremental income or loss on reworking the units is: a. $45,090 income. b. $30,780 loss. c. $46,170 income. d. $14,310 loss. e. $30,780 income.

Rats that received electric shocks were unlikely to develop ulcers if the

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 $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 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 $12. at a price of $78.00 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 $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)

As task uncertainty and interdependence increase, are a more effective coordination mechanism than