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

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

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 responsibil

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 Raw

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 r

What is the incremental ratio for the preferred alternative

A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to use modular classrooms. The school can be expanded, or a new schoo

What problems can inflation cause in an economy

Assuming that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all of its policy instruments except interest on reserves

Despite continued rapid growth

The airline industry, despite continued rapid growth, has been only marginally profitable over the last 50 years. What characteristics of the industry result in the lack of sa

Are economies of scale evident in the airline industry

Define economies of scale. Are economies of scale evident in the airline industry? What is the implication for market entry? Airline passengers are broadly segmented by purpos


Write a Review

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