Consider a small, isolated town in which a brewery faces the following inverse demand: p = 15 - 0.33q. the brewery can produce beer at a constant marginal and average total cost of $1 per bottle. a. calculate the profit-maximizing price and quantity, as well as producer and consumer surplus and the deadweight loss from market power. b. if it were possible to organize the townsfolk, how much would they be willing to pay the brewery to sell beer at a price equal to its marginal cost? c. what is the minimum payment the brewery would be willing to accept to sell beer at a price equal to marginal cost? d. is there potentially a bargain that can be struck between the townsfolk and brewery? what would the deadweight loss be if such a bargain were struck?

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.