FacTree manufactures artificial trees and flowers. There are about 100 workers who do the assembly work for pay ranging from $8 per hour to $15 per hour. They work in two shifts. About a dozen supervisors oversee their work. In the past few years there have been five employment lawsuits - three concerning sexual harassment and two concerning discrimination in promotion. All five settled before trial. For three of the lawsuits, attorney fees were over $500,000 (per lawsuit) and for one of the claims, the company paid $250,000 in damages to the employee. The company is considering an ADR provision for all employees. What are the benefits for each side?

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)