User Account

All Pages

Find the optimal capacity peak price and off-peak price

Assignment Help Microeconomics
Reference no: EM13874392

The peak and off-peak periods are of equal length. Demand in the peak period is P p = 100 - Qp and in the off-peak period Po = A - Qo. Production is fixed proportions with variable costs of $2 per unit and capital costs per period of β. Capacity costs are sunk and capacity cannot be adjusted between periods.

(a) Suppose that A = 50 and β = 4. Find the optimal capacity, peak price, and off-peak price.

(b) Suppose that A = 90 and β = 8. Find the optimal capacity, peak price, and off-peak price.

Reference no: EM13874392

Questions Cloud

Free entry in a perfectly competitive industry results : Free entry in a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent.
What would be the equilibrium price and quantity explain : a) If the monopoly can't separate both markets, then what would be the equilibrium price and quantity? Explain.b) Does the firm make a profit? If yes, how much is it? Explain.c) If the monopoly can separate both markets, then what type of price discr..
The income statement information : The income statement information for 2010 and 2011 of the Connor Company (a sole proprietorship) is as follows:
According to the keynesian model : Answer the question in short-answer format. Write your response in complete sentences. Your answers to each question should include 2-3 paragraphs (200-250 words)! No more than 250-300 words!Be sure to carefully read the question to ensure that each ..
Find the optimal capacity peak price and off-peak price : Suppose that A = 50 and β = 4. Find the optimal capacity, peak price, and off-peak price. (b) Suppose that A = 90 and β = 8. Find the optimal capacity, peak price, and off-peak price.
Economic interpretation of the shadow price associated : Supplies at least 50 units of calcium, 90 units of protein, and 66 calories at minimum cost.a. Formulate, graph, and solve this decision problem. What is the minimum cost of meeting the nutrient requirements?(9) b. Calculate and provide an economic i..
Description-visit to a sunday baptist church service in us : Write a 2 pages description of your visit to a Sunday Baptist Church Service in United States. Describe what you see, hear, feel, smell, and taste. In other words use your five senses.
Show that a single-product firm would never have incentive : Show that under the VF mechanism, a single-product firm would never have an incentive to waste once it reaches the Ramsey price.
Smythe company decides to sell division : During December 2010, Smythe Company decides to sell Division F (a component of the company). On December 31, 2010, the company classifies Division F as held for sale.

Reviews

Write a Review

Microeconomics Questions & Answers

  Labor markets further applications of microeconomicswhen

labor markets further applications of microeconomicswhen two goods are perfect complements the indifferencecurves area.

  Analyze the major barriers for entry and exit into the

analyze the major barriers for entry and exit into the airline industry. explain how each barrier can foster either

  1 a small modular nuclear reactor delivers 100 mwe and

1. a small modular nuclear reactor delivers 100 mwe and has a capital cost of 1500kwe costs 5 millionyear for

  If diane and gary have same opportunity cost of 5 per hour

1. gary and diane must prepare a presentation. as part of their presentation they must do a series of calculations and

  Define difference between human capital and physical capital

According to Keynes, in order to get the economy out of a recession, the government should plan for a budget deficit encourage firms to export to other nations, thereby jump-starting the economy follow an expansionary monetary policyfollow a contract..

  Find firms profit function and draw respective graph for

a firm has fixed costs of 300 and variable costs of 0.75q 8 per unit produced.a define and find an expression for the

  Change the size of typical automobile firm

After Henry ford invented the assembly line for producing automobiles, other automobile companies copied his invention. The new technology rise the economies of scale in automobile producing.

  Marriott the exception to the rule among big companies

Are employees treated as "commodities" at Marriott? Is their labor policy "cruelly capricious" or "caring"? Is Marriott the exception to the rule among big companies?

  Economy was on the verge of an expansion period

According to the Wall Street Journal, merger and acquisition activity in the first quarter of 2004 rose to 5.3 billion- an investment level not seen since the second quarter of 2001. Approximately three fourths of the 78 first quarter deals occurred ..

  What are profits firm chooses the profit-maximizing price

What are profits if the firm chooses the profit-maximizing price and what are profits if the firm chooses a penetration price equal to marginal cost?

  Use this information to get the estimate of own-price

levitt inc. operates in an industry that has a rothschild index of 0.78. the firm gained access to a government report

  Pure exchange economy where no production occurred

Would interest exist in a pure exchange economy where no production occurred? Explain. Please provide a detailed answer.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd