Rubidoux Adventures supplies professional guides for climbs up Mt. Rubidoux. The company has two guides, Rocky and Cliff. Because Mt. Rubidoux is a pretty easy climb, the company has only two customers, Ken and Lucy. The table below shows the guides' marginal costs for each climb as well as the customers' MWTP for guided climbs. Use this table to answer the questions that follow. Assume that only whole climbs are available. MCRocky MWTPKen MWTPLucy (S/climb) Climbs MCClf (S/climb) (S/climb) (S/climb) 1 4 1 24 22 6 3 23 21 3 7 4 21 18 11 7 19 16 13 17 11 6. 16 12 14 8 7 19 14 11 6 21 16 9. 3 What is Ken's reservation price? O a. 22 Ob 23 O C 24 O d. 21

Rubidoux Adventures supplies professional guides for climbs up Mt. Rubidoux. The company has two guides, Rocky and Cliff. Because Mt. Rubidoux is a pretty easy climb, the company has only two customers, Ken and Lucy. The table below shows the guides' marginal costs for each climb as well as the customers' MWTP for guided climbs. Use this table to answer the questions that follow. Assume that only whole climbs are available. MCRocky MWTPKen MWTPLucy (S/climb) Climbs MCClf (S/climb) (S/climb) (S/climb) 1 4 1 24 22 6 3 23 21 3 7 4 21 18 11 7 19 16 13 17 11 6. 16 12 14 8 7 19 14 11 6 21 16 9. 3 What is Ken's reservation price? O a. 22 Ob 23 O C 24 O d. 21

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 3MC

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