Determine garage capacity

Reference no: EM13177709

A private-garage owner has identified two distinct market segments: short-term parkers and all-day parkers with respective demand curves of Ps=3-(Qs/200) and Pc=2-(Qc/200). Here P is the average hourly rate and Q is the number of cars parked at this price. The garage owner is considering charging different prices (on a per-hour basis) for short-term parking and all-day parking. The capacity of the garage is 600 cars, and the cost associated with adding extra cars in the garage (up to this limit) is negligible. a.) Given these facts, what is the owner's appropriate objective? How can he ensure that members of each market segment effectively pay a different hourly price? b.) What price should he charge for each type of parker? How many of each type of parker will use the garage at these prices? Will the garage be full? c.) Answer the questions in part b.) assuming the garage capacity is 400 cars.

Reference no: EM13177709

Questions Cloud

What is the solution : use the method of substitution to solve the system of linear equation.

Determine whether the series is convergent or divergent : Determine whether the series is convergent or divergent: 9/(n(n+2)) from n=1 to infinity.

How much to invest in family vehical : In order to have money available for replacing their family vehicle, a couple planned to have $220,000 available in 10 years by investing. If they plan to increase their savings by 10% each year, how much must they invest in year 1 if they expect ..

Find for the mean of all these samples means : What value would you expect to find for the standard deviation of all these sample means? (round to the nearest integer)

Determine garage capacity : short-term parkers and all-day parkers with respective demand curves of Ps=3-(Qs/200) and Pc=2-(Qc/200). Here P is the average hourly rate and Q is the number of cars parked at this price. The garage owner is considering charging different prices ..

Estimate the cost of the tution : Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college.

Compute welchs gross pay-payroll deductions : Compute Welch's gross pay, payroll deductions, and net pay for the full year 2012. Round all amounts to the nearest dollar and compute United's total 2012 payroll expense for Welch.

Explain the general formula for the sample average : Suppose we have a data set with only two observations, y1 and y2. The general formula for the sample average is: sample average=1/2(y1+y2) Suppose y1 and y2 are sampled from the population in such a way so that they are correlated with each other.

Show the effect of presenting an event : Use the horizontal model (or write the journal entry) to show the effect of the sale of the season tickets, use the horizontal model (or write the journal entry) to show the effect of presenting an event.

User Account

All Pages