question 9\n1 pts\ntable 15 - 7\npotential customer willingness to pay (dollars per hour)\narun 8\nbernice…

question 9\n1 pts\ntable 15 - 7\npotential customer willingness to pay (dollars per hour)\narun 8\nbernice 9\ncara 10\ndawn 12\njulie plans to start a pet - sitting service. she surveyed her neighborhood to determine the demand for this service. assume that each person surveyed demands only one hour of pet - sitting services per period. table 15 - 7 above shows a portion of her survey results.\nrefer to table 15 - 7. suppose julies marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay. what is julies total revenue and how many hours of service will be purchased?\n4 hours and her total revenue = $39\n4 hours and her total revenue = $28\n1 hour and her total revenue = $7\n5 hours and her total revenue = $35

question 9\n1 pts\ntable 15 - 7\npotential customer willingness to pay (dollars per hour)\narun 8\nbernice 9\ncara 10\ndawn 12\njulie plans to start a pet - sitting service. she surveyed her neighborhood to determine the demand for this service. assume that each person surveyed demands only one hour of pet - sitting services per period. table 15 - 7 above shows a portion of her survey results.\nrefer to table 15 - 7. suppose julies marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay. what is julies total revenue and how many hours of service will be purchased?\n4 hours and her total revenue = $39\n4 hours and her total revenue = $28\n1 hour and her total revenue = $7\n5 hours and her total revenue = $35

Answer

Explanation:

Step1: Identify customers willing to pay

Customers will purchase the service if their willingness - to - pay is greater than or equal to the marginal cost of $7. Arun ($8), Bernice ($9), Cara ($10), and Dawn ($12) are willing to pay $7 or more.

Step2: Calculate number of hours and total revenue

There are 4 customers willing to purchase. Total revenue = (Willingness - to - pay of Arun+Willingness - to - pay of Bernice+Willingness - to - pay of Cara+Willingness - to - pay of Dawn) = $8 + 9+10 + 12=39$.

Answer:

4 hours and her total revenue = $39