What is the profit maximizing price for seasonal passes

Assignment Help Econometrics
Reference no: EM13203238

Monopoly Rinks is the only ice skating facility in Mapleville. The next closest rink is about 100 miles away. It has determined that its demand curve is

Q = 123 - 0.5P - 0.25 Pc + .01 Y

where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville.

The local economists estimate that Y is equal to $12,000 and Monopoly has set Pc at $10. If Monopoly's MC of serving another customer is equal to $1, what is the profit maximizing price for seasonal passes?

Reference no: EM13203238

Questions Cloud

What is the number of degrees of freedom : Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it. Also, th..
Research the main content of national curriculum for wales : Research the main content of the National curriculum for Wales include subject headings English Maths and Science, and a brief summary of each. Be sure to explain any terminology used in your summary
Determine how many units of x will zcorp buy : Assume ZCorp has the following short run production function: Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produ..
Nursing home directors and nurse supervisors demonstrated : Given the board of directors' to energize the workforce, what advice would you provide for creating a leadership strategy?what leader behaviors should nursing home directors and nurse supervisors demonstrated?
What is the profit maximizing price for seasonal passes : Q = 123 - 0.5P - 0.25 Pc + .01 Y where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville. what is the profit maximizing pric..
Constant-growth-rate discounted dividend model : Calculate the value of all future dividends at the beginning of year 8 and what is the present value of P7 at the beginning of year 1?
Chalenging in providing care to inisured population : Discuss health and financial related chalenging in providing care to inisured population. Please write your answer about 5-6 sentence and please include in your answer madecare part A, part B and DHHS.
Development-women take their first steps toward public life : What development helped women take their first steps toward public life?
Find the probability of a type ii error for the selected : Two different companies have applied to provide cable television service in a certain region. Let p denote the proportion of all potential subscribers who favor the first company over the second.

Reviews

Write a Review

Econometrics Questions & Answers

  How much can a firm afford spend for this assetand

An asset with a cost basis of $100,000 and an ADS* recovery period of five years is placed in service and is expected to generate net cash flows of $30,000 per year during its 6 years useful life. Its salvage value is expected then to be negligib..

  Calculate the velocity of circulation and nominal gdp

If quantity of money is $3 trillion, real GDP is $10 trillion, the price level is ..09, the real interest rate 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the velocity of circulation, the value M times V, and nom..

  Explain why production is exactly the same at a price ratio

Consider an economy with just one technique available for the production of each good, food and cloth: Good food Cloth labor per unit output 1 1 labor per unit output 2 1 a. if consumers insist on trading four units of food for five units of cloth, w..

  What are the equilibrium price and quantity in market

Suppose the market demand curve for a product is given by: Qd = 500 - 15P + 20I and the market supply schedule is: Qd = -25 + 10P + 10K. The initial values are I = 10, K = 5. a) What are the equilibrium price and quantity in this market

  Determine the output per worker

In this question we are going to incorporates investment in human capital by agents, in a form similar to physical capital. Labor units are replaced by human capital units Y = AK?(?H)1?? where • H ? Units of Human Capital • ? ? [0, 1] ? Fraction of..

  What would be the inflation rate for equation of exchange

If the quantity of money rose 10%, velocity was unchanged, and output rose 6%, what would be the inflation rate, according to the equation of exchange? Equation given: (Quantity of Money) * (It's velocity) = (Price level) * (Output) or ((QM) * V ..

  Why the government imposes a tax on domestic producers

Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers.

  How the economy has a natural rate of unemployment

what unemployment rates would we expect to see in this economy?b. Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) ..

  How many years will it take for the dollars purchasing power

the general price inflation in our economy, the purchasing power of the dollar shrinks with the passage of time. If the average general inflation rate is expected to be 7% per year for the foreseeable future, how many years will it take for the do..

  What is the equilibrium price and quantity for the industry

The widget industry is perfectly competitive. The industry demand and supply functions for widgets are given below. Qd = 424 - 40P Qs = 40 + 8Pa. What is the equilibrium price and quantity for the industry.

  What are initial levels of real gdp and labor productivity

Initally, the population of Cape Despair is constant and real GDP per hour of labor is at the subsistence level of $15. Then a technological advance shifts the production function upward by 50 percent at each level of labor.What are the initial le..

  Find the private marginal benefit

Smartphones require superconductors, and the production of superconductors is heavily polluting due to the use of many chemicals in the process. The damages to society are given by Ds = 10x2.a) Find the private marginal benefit, the private margina..

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