Explain what are the profit maximizing prices

Assignment Help Econometrics
Reference no:

The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets of out-of-town skiers is given by Qo = 600 - 10 Po, while the demand for ski tickets of local skiers is given by Ql = 600 - 20 Pl . The marginal cost of servicing a skier of either type is $10. If Snow City Ski Resort (third-degree) price discriminates then what are the profit maximizing prices?

Reference no:

Questions Cloud

If firm uses strategy each customer buy how much units : A typical customer who buys from a firm has a demand given by P = 90 - 3 Q. The firm has a constant marginal cost MC = $18 and no fixed cost. It currently uses a uniform pricing strategy (i.e., it charges a single price for all the units it sells)..
Which of the following leadership theories focuses : Which of the following leadership theories focuses on the personal relationships that leaders develop with followers?
Write a paper on the walmart supply chain : Write a paper on the WalMart Supply Chain. You can email it to me when you are done. WalMart has one of the best supply chains in the world and it is one of the main reasons they are so successful.
Define what volume of h2 gas : What volume of H2 gas (in L ), measured at 742 mmHg and 84C, is required to synthesize 25.8g of CH3OH ?
Explain what are the profit maximizing prices : The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets of out-of-town skiers is given by Qo = 600 - 10 Po, while the demand for ski tickets of local skiers is given by Ql = 600 - 20 Pl .
Discuss the best way to leverage a breakeven analysis : Discuss the best way to leverage a breakeven analysis when defining a business strategy.
Define calibration and collection of equilibrium data : Calibration and collection of equilibrium data are different experiment. Why could you use the calibration curve for getting equilibrium data?
Which principle of tax equity-the benefit principle : Most people want taxes to be fair. Yet there are strong disagreements over what constitutes tax equity. Using an example and the concepts of equity. Which principle of tax equity-the benefit principle or the ability-to-pay principle-is in closest ..
Consider an investment scenario that returns a level stream : Consider an investment scenario that returns a level stream of four annual payments of $10,000 each (i.e., an annuity). The first payment occurs at the end of the first year, and the subsequent payments occur at the end of each of the next three year..

Reviews

Write a Review

Econometrics Questions & Answers

  Which propositions should be rejected by the manager

A firm uses labor and capital as factors for a technology with constant returns to scale and strictly convex production function. A new manager, looking through past data, observed that: when factor prices were: wl = 20 and wk = 5; the firm hired l..

  Find the quantities sold by each firm and the market price

Consider a simultaneous move quantity-setting game with two firms facing a demand curve p = 100 - q. Both firms have marginal cost of 20. Suppose one firm maximizes profit and the other maximizes revenue, but both take into account the other firm'..

  Are any of the stocks an obvious buy compared

Given the following additional data: HPG T CSCO 5 year expected dividend growth rate(%): 8.44 4.04 4.68 Long term growth rate after 5 years (%) 5.5 2.0 5.5 Stock Price($) dividend($ annual) Hewlett Packard (HPQ) 25.63 0.48 AT&T (T) 29.39 1.74 Cisco S..

  Are the events mba and over age 35 mutually exclusive

Staff inc, a management consulting company, is surveying the personell of Acme Ltd. It determined that 35% of the analysts have an MBA and that 40% of all analysts are over age 35. Further, of those who have an MBA, 30% are over age 35.

  Calculate the point price elasticity of demand and income

(a) Calculate the equilibrium quantity and price for peaches. (b) Calculate the point price elasticity of demand and point income elasticity for peaches at the equilibrium. Also calculate the point cross price elasticity between peaches and aprico..

  Explain will you be a net borrower or net saver

Your utility function for present and future consumption is given by U(P,F)=P*F. You earn an income of $50,000 in the present, and will subsequently earn an income of $50,000 in the future. Will you be a net borrower or net saver.

  What is the optimal price of the textbook

What is the optimal price of the textbook from the author's point of view and by how much would the demand for the textbook change if advertising were increased by 2%?

  Determine whether biomass is profitable if a rate of return

A biomass plantation operator can invest $1,000 today to plant a new crop of trees, which, is estimated, can be sold at a net gain(sales-harvesting costs) of $10,000 in 40 years. Determine whether this is profitable if a rate of return of 7%/yr is..

  Determine how should the input combination be adjusted

Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote, respectivel..

  Determining investor yield

Suppose that the home currency start to appreciate against other currencies, this should the current account balance, other things equal

  What is the value of net exports

Assume that gross private domestic investment is $800 billion and the government (state, local, and federal combined) is currently running a $400 billion deficit. If households and businesses are saving $1,000 billion, what is the value of net exp..

  What effective price increase is facing japan air lines

If Boeing's dollar aircraft prices increase 20 percent and the yen/dollar exchange rate declines 15 percent, what effective price increase is facing Japan Air Lines for the purchase of a Boeing 747 Would Boeing's margin likely rise or fall if the ..

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