Reference no: EM1371063
1 The demand equations for airplane trips for business travelers and vacationers are P = 600 â?" 0.2QB and P = 200 â?" 0.05QV, respectively. Assume that the airline can serve an extra passenger with no extra cost.
(a) If the airline company has to charge a single price to all passengers, what are the profitmaximizing price, the number of tickets sold to each type of travelers, and the total profit for the airline company?
(b) If the airline company can price-discriminate and charge different prices to different types of customers, what are the price it will charge to business travelers and vacation travelers? What is the airlineâ??s profit with price discrimination?
2 Times and Newsweek are two competing news magazines. Suppose that each company charges the same $5.00 price for their magazines. Each wants to maximize its sales given the $5.00 price. Each week, there are two potential cover stories. One in on politics, and the other is on the economy. Sales of both companies are affected by the decision on which story to place on the covers. The two magazines make their decision independently and at the same time. The resulting sales for the two companies are given in the following table:
Time Cover Newsweek Cover Time Sales ($000â??s) Newsweek Sales ($000â??s)
Politics Politics 400 150
Politics Economy 700 200
Economy Politics 300 700
Economy Economy 200 150
a. Make a payoff matrix of this game.
b. What is the Nash equilibrium in this game?
c. Does either or both of the magazines have a dominant strategy?
d. Assume that both magazines are owned by the same publishing company that maximizes the combined profits of the magazines. Will the company make the same choice as in the noncooperative game (i.e., owned by different publishing companies)?
|
Literatire review - best practice model
: Review all the relevant literature by consulting leading text books, conference proceedings, international journals or/and any other available sources to develop and understanding of what involves in cost and time management and control in project..
|
|
Compute the real interest rate
: Given the following information, compute the real interest rate for years 2, 3, and 4. Suppose that each CPI number tells us the piece level at the end of each year.
|
|
Examples of competitive markets
: Write down the some real-life examples of monopolistically competitive, oligopoly, and monopoly markets.
|
|
Calculating accounting and economic profits
: Howard Bowen is a big cotton farmer. The land and equipment he has a current market value of $4,000,000. Bowen owes his local bank $3,000,000.
|
|
Determining oligopoly and monoplistic competition
: Assume that both magazines are owned by the same publishing company that maximizes the combined profits of the magazines. Will the company make the same choice as in the noncooperative game (i.e., owned by different publishing companies)?
|
|
Write function which takes string as its input
: In this, you are required to write the function which takes string as its input, chops sentence into words, and for each word, capitalizes the rst letter
|
|
Differences between four market types
: Summarize the differences between the four market types. Provide a general explanation of how business may maximize profit within each market type.
|
|
Determine the amount of a share
: Determine what would you pay for a share of X Corp stock today if the next dividend will be $3 per share, your required return on equity investments is 15 percent,
|
|
Mutual interdependence in oligopolies
: Describe the meaning of the term "mutual interdependence" as it applies to oligopolies. Provide an example.
|