User Account

All Pages

Marginal cost of operating the park

Assignment Help Macroeconomics
Reference no: EM131284398

River Park has a low demand D1 during work days, but on Saturday and Sunday demand increases to D2. The demand and marginal revenue functions are:

D1 : P1 = 2-0.001Q1

MR1 = 2 - 0.002Q1

D2 : P2 = 20-0.01Q2

MR2 = 20 - 0.02Q2

where Q = number of visitors entering the park each day. The marginal cost of operating the park is the same on weekdays and weekends:

MC = 1 + 0.004Q

  1. In order to control crowds, the park's management uses peak-load pricing. This scheme controls crowds and makes sure the park is self-supporting. Calculate the appropriate prices to charge, and determine the number of cars entering the park, Q1 and Q2.
  2. Explain how switching from a uniform pricing scheme to a peak load pricing scheme affects the market. Be as precise as you can about the differences between uniform and peak-load pricing.

Reference no: EM131284398

Questions Cloud

Write an email denying a request for a salary advance : Decide how you'll organize the email and which of these reasons you will present to the employee. You don't need to include everything unless you believe it will explain your rationale and maintain the employee's goodwill.
Identify specific fixed and variable costs : Identify specific fixed and variable costs that would likely be incurred by FORD MOTOR COMPANY, and also indicate which factory overhead allocation method would be best suited for your company given nature of its operations and explain your reasoni..
Write an email about a pending lawsuit against the company : One of the biggest decisions you have as a team is to decide how many of these details to include in your memo to employees. How much do people need to know? You may invent more information to give employees a full sense of what is happening.
A long hollow cylinder exchanges heat by radiation : Heat is removed from the inside surface at a uniform flux Use a simplified radiation model and write the heat equation and boundary conditions for one-dimensional steady state conduction.
Marginal cost of operating the park : In order to control crowds, the park's management uses peak-load pricing. This scheme controls crowds and makes sure the park is self-supporting. Calculate the appropriate prices to charge, and determine the number of cars entering the park, Q1 an..
Write a memo announcing no bonus : You are the manager of a fi tness equipment manufacturing plant called Muscles Galore located in Gary, Indiana. The plant has been in operation for seven years. Over the years your employees have been very productive, and sales have been high. The..
Evaluate the different types of technology available : Illustrate the difference between technical innovation and organizational effectiveness. Evaluate the different types of technology available, and recommend the most appropriate technology for your organization.
Describe competency models, case-based decision making : Describe competency models, case-based decision making, and systems thinking.Describe why the competencies of the past are not compatible with the competencies of the future for the global organization.
Write an email to tell employees about a product recall : As the vice president of public relations at GM, you just wrote the following news release about vehicle recalls. Next, you will work with the vice president of human resources to communicate this news to employees.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Consumer demand curve and price elasticity of demand

A monopolist currently charges $50 a unit for the 100,000 units of product it produces and sells every month. An economic analysis has shown that,

  Storefront as an additional source of revenue

Imagine that you are a manager at a brick and mortar store that has an online storefront as an additional source of revenue. The company has tasked you with creating ideas to improve logistics in order to increase profitability?

  What would be the consumer buying response to coca-cola if

What would be the consumer buying response to Coca-Cola if the price of Pepsi doubled? If the prices of Coca-Cola and Pepsi remained constant, what would be the typical buying response to these products if consumer income was reduced by 30%? Suppose ..

  West virginia and the highest-wage state

Suppose the lowest-wage state in the United States is West Virginia and the highest-wage state is New York. Which of the following would be true?

  Predict the new quantity per week and total revenue per week

Suppose the price elasticity of demand for vanity plates in your state is 0.60. The initial price is $20 and the initial quantity is 1,000 plates per week. Suppose the state increases the prices by 10%. Predict the new quantity per week and total rev..

  Should us laws be changed to need a shorter work

Should US laws be changed to need a shorter work week and longer vacation time.

  Own idea for an innovation along with a model

During Phase 1, each individual will submit their own idea for an innovation along with a model they find useful for evaluating its merits. Each team member is responsible for completing research on various models.

  Implement validations for numeric input and comment program

Write a program that prompts the cashier to enter all prices and names, adds them to two array lists, calls the method that you implemented, and displays the results. Use a price of 0 as a sentinel. Must use constants, implement validations for nu..

  Consider an economy that consists of a coal producer a

consider an economy that consists of a coal producer a steel producer and some households. in a given year the coal

  Provide the cyclical nature of government tax revenues

Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.

  Question regarding the function of wage

a) Derive the consumer's budget constraint and its choice variables (ie. the total amount of hours worked and leisure as a function of wage) b) Derive the consumer's marginal rate of substitution dC/dR

  Explain whether aggregate demand or aggregate supply

Explain whether aggregate demand or aggregate supply changes and why the change occurred and explain what happens to the equilibrium price level and equilibrium output in the U.S.

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