Question: Please help me explain why are these answer? thinks a lot Question 5 1 / 1 pts According to evidence that profits revert to their


Please help me explain why are these answer? thinks a lot
Question 5 1 / 1 pts According to evidence that profits revert to their mean at a rate of 40% per year, if profits are 100% above their mean today, in 4 years they will be about equal to their mean. 3% above their mean. 13% above their mean. 100(1 - .4)4 = 12.96 O 60% below their mean. Question 7 1 pts In the scenario of the previous two questions, the most profitable indirect price discrimination scheme is O a fixed fee of $18 and a price of $1.50/shirt. $27 for 6 shirts. o all three are qually profitable. O $7 for the 1st shirt, $6 for the 2nd, $5 for the 3rd, $4 for the 4th, $3 for the 5th, and $2 for the 6th. Question 5 1 pts If each customer of a t-shirt seller values the first shirt at $7, second at $6, third at $5, fourth at $4, fifth at $3, sixth at $2 and seventh at $1, and MC = $1.50 for each shirt, the seller maximizes profits by setting a price of $5 each for the first 3 shirts purchased & $3 for each additional shirt. $5/shirt. $27 for 6 shirts. $2/shirt
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