What kind of market would describe the museum

Assignment Help Business Economics
Reference no: EM13886505

The residents of the town Marina Del Rey all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $ 2,400,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visits: QD = 10 – P, where P is the price of admission.   a. Graph the museum’s average total cost curve and its marginal cost curve. What kind of market would describe the museum?   b. The mayor proposes financing the museum with a lump-sum tax of $ 24 and then opening the museum free to the public. How many times would each person visit?   c. The mayor’s anti- tax opponent says the museum should finance itself by charging an admission fee. What is the lowest price the museum can charge without incurring losses?    d. What real- world considerations absent in the above problem might argue in favor of an admission fee?

Reference no: EM13886505

Questions Cloud

How would a utilitarian allocate the water : Ten people are shipwrecked with water for only ten person days, but it will take at least 10 days to reach shore( a person dies after ine day without water) How would a Utilitarian allocate the water? Draw the production possibility curve for two peo..
Differentiation between strong and weak performers : A company decides to offer an average annual raise of 8%, although the current inflation rate is 10%. Each engineering manager decides on the best way to distribute the salary increase to his/her staff. However, if everyone gets an increase of 8%, th..
About can be accomplished by making payments : The purchase of the car that Joe dreams about can be accomplished by making payments of $300 a month for six years, if the first payment is made on February 1,1995, and the last payment is made on January 1,2001. Will Joe have saved up enough money t..
What is the difference between the equal quarterly payment : A new office building was constructed five years ago by a consulting engineering firm. At that time the firm obtains a bank loan for $100,000 with a 12% annual interest rate, compounded quarterly. What is balance due to the original mortgage if 20 pa..
What kind of market would describe the museum : The residents of the town Marina Del Rey all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $ 2,400,000 and no variable costs. Graph the museum’s average total cost curve and its marginal cost curv..
An accident occurred and an individual lose a leg : An accident occurred and an individual lose a leg. Show diagrammatically the utility functions before and after the accident. Show that if you were the Utilitarian, you would give more income to the individual after the accident, but that even after ..
Profit-stakeholder and social responsibility : How does Toyota’s approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and social responsibility?
Which might approved under rawlsian social welfare function : Explain why the change is not likely to be a pareto improvement. Which of these changes might be approved under the compensation principle? Which might be approved under a Rawlsian social welfare function?
What rate can you earn on a one-year risk-free security : The spot rate for the Japanese yen currently is ¥120 per $1. The one-year forward rate is ¥119 per $1. A risk-free asset in Japan is currently earning 8 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free U.S. secur..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Compute the price elasticity of demand for cars

Between 2011 and 2012, the quantity of cars produced and sold decreased by 20%. During the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3. Comp..

  Elucidate the entities affected by industrial regulation

Elucidate the entities affected by industrial regulation in terms of market structure. Elucidate why industrial regulation affects those entities you identified.

  Cause the supply curve for bread to shift inward

Which of the following would cause the supply curve for bread to shift inward?

  What determines the relative extent of these gains

Use Ricardian model to explain why and how both of the two countries considered countries gain from free trade between them. And what determines the relative extent of these gains?

  Determine optimal output and pricing policy

In 1991 and 1994, Apple Computer engaged in a holding action in desktop market dominated by PCs using Intel chips and running Microsoft's operating systems.

  Find the utility maximizing choice of food and clothing

Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..

  Fail in engaging their customers

What are some examples of companies that succeed and companies that fail in engaging their customers?

  What is the resulting outcome of the game

What is a subgame-perfect Nash equilibrium proposal of player 1, and what is the resulting outcome of the game?

  Circular flow diagram

Explain how the circular flow diagram relates to the current economic situation.

  Significant number of anheuser busch employees

In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would..

  How many units will be traded at a cost

How many units will be traded at a cost of $35? At a price of $14. Which participants will be dissatisfied at these prices.

  Q1 the taxing agency in your state would like to impose a

q1. the taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss. to

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!

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