1. Explain what WTA, WTP
2. Often, in marketing one is trying to convince consumers of a product’s ‘value.’ Using the indifference curve and budget constraint concepts, explain how this ‘value’ would be represented in terms of trade-offs, maximizing customer satisfaction, and how this might generate additional sales for a retailer.
3. Under what circumstances might game theory replace a standard profit maximization function? How does a firm’s strategic behavior differ between repeated play games and single play games