User Account

All Pages

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.

Reference no: EM131284398

Questions Cloud

Write an email denying a request for a salary advance : Decide how you'll organize the email and which of these reasons you will present to the employee. You don't need to include everything unless you believe it will explain your rationale and maintain the employee's goodwill.
Identify specific fixed and variable costs : Identify specific fixed and variable costs that would likely be incurred by FORD MOTOR COMPANY, and also indicate which factory overhead allocation method would be best suited for your company given nature of its operations and explain your reasoni..
Write an email about a pending lawsuit against the company : One of the biggest decisions you have as a team is to decide how many of these details to include in your memo to employees. How much do people need to know? You may invent more information to give employees a full sense of what is happening.
A long hollow cylinder exchanges heat by radiation : Heat is removed from the inside surface at a uniform flux Use a simplified radiation model and write the heat equation and boundary conditions for one-dimensional steady state conduction.
Marginal cost of operating the park : 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 an..
Write a memo announcing no bonus : You are the manager of a fi tness equipment manufacturing plant called Muscles Galore located in Gary, Indiana. The plant has been in operation for seven years. Over the years your employees have been very productive, and sales have been high. The..
Evaluate the different types of technology available : Illustrate the difference between technical innovation and organizational effectiveness. Evaluate the different types of technology available, and recommend the most appropriate technology for your organization.
Describe competency models, case-based decision making : Describe competency models, case-based decision making, and systems thinking.Describe why the competencies of the past are not compatible with the competencies of the future for the global organization.
Write an email to tell employees about a product recall : As the vice president of public relations at GM, you just wrote the following news release about vehicle recalls. Next, you will work with the vice president of human resources to communicate this news to employees.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Ellucidate what happens to the price of a bond

Ellucidate what happens to the price of a bond that pays a fixed percent of the face value every year when interest rates in the economy increase.

  Knowledge of aggregate demand and aggregate supply

Using knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?

  Calculate the expenditure multiplier

What would the government surplus/deficit be, what would the trade balance be and what changes would occur if G were increased to $941?

  What would a strict deontologist do

What would a strict deontologist do? Why? To whom or to what is your duty? This is not an easy question...but it is also what makes duty ethics so much fun!

  Cnges in government spending and interest rates

changes in government spending and interest rates. government spending is given by the equationsrecall that current

  How much did you spend on fruit

Suppose you purchased 5 apples and 3 oranges last week. Apples cost $0.75 per apple, and oranges were $1.00 per orange. How much did you spend on fruit?

  Behavior in the short term

If the price of that product or service went up by 10% overnight, how would you adjust your behavior in the short term? How would you adjust your behavior in the long term?

  Problems of inflation or unemployment

Businesses spend $1,000 in new investment spending. And, foreigners spend $500 on exports. In order to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:

  To find out the shortage and surplus of goods

We won't sell these products on both regions and you can't transport the product each other. find the equilibrium price,equilibrium quantity,shortage and surplus of goods on one by one.

  Determine equilibrium level of output

Assume that a company has a budget of $12,000, that the wage rate is $10 per hour, and that the rental rate of capital is $ 100 per hour.

  The income terms of trade improve explain

The income terms of trade improve? Explain

  Improvement of the typical canadian''s welfare

Explain why we cannot necessarily conclude that the typical Canadian's welfare has improved by 10-percent over the year.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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