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.