### R-square from the bp regression

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Q1. Suppose your elasticity of demand for your parking lot spaces is -2 and the price is \$8 per day. If your MC is zero and your capacity is 80% full at 9 a.m. over the last month, are you optimizing?

Q2. Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.

Q3. Mason Company always collects rent in advance from its customers. The 2011 income statement for Mason reports rent revenue of \$18,000. The related balance sheet accounts for the beginning and end of the year were: Unearned Rent \$3,750 on Jan. 1, 2011 and \$6500 on Dec. 31, 2011
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