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Part 1 (1 point) Sheldon is the only landscaper in town. To keep things simple, he only mows lawns. Assume he has five possible customers with different willingness to pay for a month of lawn service as depicted in the table below. Customer | Willingness to pay (WTP) for a month of lawn service 1 | $120 2 | $100 3 | $80 4 | $60 5 | $40 Suppose Sheldon has variable costs of $35 per customer and fixed costs of $150. Sheldon must charge each customer the same price, so he needs to decide whether to charge $120, $100, $80, etc. If Sheldon maximizes his profit, he will earn $ [ ] (if there are losses, include the negative sign). Part 2 (1 point) Not satisfied with his current situation, Sheldon increases his service area so that he now has eight possible customers with different willingness to pay for a month of lawn service as depicted in the table below. Customer | Willingness to pay for a month of lawn service 1 | $180 2 | $160 3 | $140 4 | $120 5 | $100 6 | $80 7 | $60 8 | $40 Sheldon has the same costs as before: $35 in variable costs and $150 in fixed costs. Sheldon must charge each customer the same price, so he needs to decide whether to charge $180, $160, $140, etc. If Sheldon maximizes his profit, he will earn $ [ ] (if there are losses, include the negative sign).

          Part 1 (1 point)
Sheldon is the only landscaper in town. To keep things simple, he only mows lawns. Assume he has five possible customers with different willingness to pay for a month of lawn service as depicted in the table below.

Customer | Willingness to pay (WTP) for a month of lawn service
1 | $120
2 | $100
3 | $80
4 | $60
5 | $40

Suppose Sheldon has variable costs of $35 per customer and fixed costs of $150. Sheldon must charge each customer the same price, so he needs to decide whether to charge $120, $100, $80, etc.
If Sheldon maximizes his profit, he will earn $ [ ] (if there are losses, include the negative sign).

Part 2 (1 point)
Not satisfied with his current situation, Sheldon increases his service area so that he now has eight possible customers with different willingness to pay for a month of lawn service as depicted in the table below.

Customer | Willingness to pay for a month of lawn service
1 | $180
2 | $160
3 | $140
4 | $120
5 | $100
6 | $80
7 | $60
8 | $40

Sheldon has the same costs as before: $35 in variable costs and $150 in fixed costs. Sheldon must charge each customer the same price, so he needs to decide whether to charge $180, $160, $140, etc.
If Sheldon maximizes his profit, he will earn $ [ ] (if there are losses, include the negative sign).

Part 1 (1 point)
Sheldon is the only landscaper in town. To keep things simple, he only mows lawns. Assume he has five possible customers with different willingness to pay for a month of lawn service as depicted in the table below.

Customer | Willingness to pay (WTP) for a month of lawn service
1 | 120
2 |100
3 | 80
4 |60
5 | 40

Suppose Sheldon has variable costs of35 per customer and fixed costs of 150. Sheldon must charge each customer the same price, so he needs to decide whether to charge120, 100,80, etc.
If Sheldon maximizes his profit, he will earn [ ] (if there are losses, include the negative sign).

Part 2 (1 point)
Not satisfied with his current situation, Sheldon increases his service area so that he now has eight possible customers with different willingness to pay for a month of lawn service as depicted in the table below.

Customer | Willingness to pay for a month of lawn service
1 |180
2 | 160
3 |140
4 | 120
5 |100
6 | 80
7 |60
8 | 40

Sheldon has the same costs as before:35 in variable costs and 150 in fixed costs. Sheldon must charge each customer the same price, so he needs to decide whether to charge180, 160,140, etc.
If Sheldon maximizes his profit, he will earn [ ] (if there are losses, include the negative sign).

Added by Ines P.

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