What are the highest and lowest payments from the writer that the beekeeper - fa

Question

What are the highest and lowest payments from the writer that the beekeeper - farmer team will accept for the sixth day?

a) Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept?

b) Assuming that the beekeeper gets that amount, what range of payments will the farmer accept? (Remember that negative payments are also possible.)

c) Answer the same questions for the 5th day.

Beekeeper, The farmer , and the Writer 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 + APPLES PROFITS LESS WRITERS LOSS 1 $7 $7 $10 $10 $17 $1 $1 $16 2 5 12 9 19 31 3 4 27 3 3 15 8 27 42 5 9 33 4 1 16 7 34 50 7 16 34 5 -1 15 6 40 55 9 25 30 6 -3 12 5 45 57 11 36 21 7 -5 7 4 49 56 13 49 7 8 -7 0 3 52 52 15 64 -12 9 -9 -2 2 54 52 17 81 -36

Explanation / Answer

the highest payment should be 3/5 ratio of the capital cost and the lowest cost should be 1/5 of the ratio. the farmer should accept 3/5 ratio of the capital cost.

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