1 what price should be put on the new good in order

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Unformatted text preview: ct to sell during the coming year at the optimal price? 3. What yearly maximum profit can be expected from sales of the new product? 4. How sensitive is profit to changes away from the optimal quantity of items, as found in Question 2? 5. What is the consumer surplus if profit is maximized? Your Excel file will also contain computational directions and additional questions on changes in demand and capital investments which should be answered in your team report. Menu (material ends) C I Student Projects. Project 2: Bidding on an Oil Lease Student Project 2 Each team of students will receive an Excel file giving a list of companies that will be bidding on a new lease that is similar to those in the historical data. The companies’ geologists’ prior signals for the 20 proven leases will be listed. In the team projects, these signals will completely replace the signals that are used in the Class Project. However, the same values for the 20 historical leases that are used in the Class Project, will also be used in the team projects. The file for each team will list its own Company 1 signal, s1, for the next auction. Teams have three assignments. Determine what would be expected to happen if each company bid the same amount as its signal. Determine the Company 1 bid under several uniform bidding strategies, and explore the expected values of these plans. Find a stable uniform bidding strategy that could be followed by all companies, without any chance for improvement. Menu Auction Data.xlsx (material ends) C I Bla nk...
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