### 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.

#### Calculate the consumer surplus

If Abacus charges a uniform price for a unit of accounting service (Q), what price must it charge per unit, and how many units must it produce per time period in order to ma

#### Expenditure multiplier related to the marginal propensity

Suppose the economy has no income taxes or imports. How is the size of the expenditure multiplier related to the marginal propensity to consume? What is the multiplier if th

#### Forecast the values of sales

Apply Holt-Winters Double exponential smoothing (without seasonality) to forecast the values of sales X for periods 13 and 14, using α = 0.2 and β = 0.3. Assume 12 months of

#### Calculate the return on assets

A. Calculate the returnon assets (ROA), the return on equity (ROE), the leverage ratio, and banks capital as a percent of assets. B. Suppose the capital requirement were 8%

#### What is the average and marginal cost of gumball production

Assume Acme can produce any number of gumballs they want using this technology. Please find the cost function in this case - What is the average and marginal cost of gumball

#### Why do we measure changes in money supply

Why do we measure changes in money supply? How changes in money supply are related to change in interest rates, economic growth and inflation? Why are currency and checkable d

#### Provided information on anxiety disorder during postpartum

Ross and Mclean 2006 provided information on anxiety disorder during postpartum. Surkan et al., 2006 provided information on communal networks and assistance in postpartum

#### Find effective rate of protection for canadas steel industry

Canada's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate the effective rate of protect

### Write a Review 