What is the profit maximizing price for seasonal passes

Assignment Help Econometrics
Reference no: EM13220024

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: EM13220024

Questions Cloud

Explain the origins of the strategic position of amazon : Discuss and analyze how Amazon has continued to preserve its competitive position refer to Barney looking insider for competitive advantage
Determine equilibrium price and quantity under free trade : Consider a competitive market served by many domestic and foreign firms. The domestic demand for thse firms' product is \(Q^{4} = 500 -1.5P\) The supply function of the domestic furms is \(Q^{SD} = 50 + 0.5P\) while that of foreign firms is \(Q^{S..
Determine what is the percentage change in output : Assume Firm Y's production function is given by the following Cobb Douglas equation: Q = 0.5 x L0.6 x K0.5 where L denotes labor and K denotes capital. a. Does the production function exhibit increasing, decreasing or constant returns to scale
Type of e-commerce business : Identify the business, with its website address, and any information about the company's management team and organizational structure.
What is the profit maximizing price for seasonal passes : 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.
Compute the molarity of urea in a solution : Calculate the molarity of urea in a soln prepared by dissolving 16 g of urea (MM= 60.0 g/mol) in 39 g of H20. The density of the soln is 1.3 g/ml.
What steps should it to produce the same level of output : A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4 Is the firm m..
Explain the equilibrium vapor pressure under these condition : Butane's (C4H10) molar enthalpy of vaporization is 22.44 kJ/mol and its normal boiling point is -0.40 °C. A 250-mL sealed Erlenmeyer flask contains 0.55 g of butane at -22 °C. a. What is the equilibrium vapor pressure under these conditions?
What is maximum size loan bank can make once check clears : The more people decide to hold currency, the A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with the Fed, and $5 million in government securities. The required reserved ratio is percent.

Reviews

Write a Review

Econometrics Questions & Answers

  What standard would the court use to determine sale of car

Andrea, however, claims they do have a contract and wants to enforce said contract for the price of the car. What standard would the court use to determine whether there is a contract between the parties for the sale of the car.

  For what interest rates do you prefer each payment plan

A business magazine is available for $58 for 1 year, $108 for 2 years, $153 for 3 years, or $230 for 5 years. Assume you will read the magazine for at least the next 5 years. For what interest rates do you prefer each payment plan

  What is the cost of producing q output in the short-run

What is the marginal cost of producing a 301s unit A 401st unit If you are comfortable doing so, you may answer this question by writing down the marginal cost function directly, rather than recalculating total cost for q = 301 and q = 401.

  Calculate the contractors profit-maximizing choice of effort

A contractor has been chosen to perform a government project. To avert the moral-hazard risk that the contractor will behave inefficiently, government is considering how to use contractual incentives to avoid cost overruns. Government has a target..

  What is the first action you would take as the president

Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..

  What is the marginal willingness to pay

Assume that the market equilibrium rent for two-bedroom apartments in Santa Monica, California is $1500 per month and the quantity is 40,000 units. The city council of Santa Monica establishes a rent control of $1200 per month on two-bedroom apart..

  Calculate the optimal number of machines for the lowest cost

The machining time per piece if 0.164 h, and the machine loading time is 0.038h. With an operator rate of $12.80/h and a machine rate of $14/h, calculate the optimal number of machines for the lowest cost per unit of output.

  Determine percent frequency distribution of the car colors

Roger believes the colors chosen by customers who special-order their cars best reflect most customers' true color preferences. He has taken a random sample of 40 special orders for Mustang coupes placed in the past year. The new color options are..

  What rate of return would investment produce for purchaser

A mine is for sale for $240,000. It is believed the mine will produce a profit of $65000 the first year, but the profit will decline $5000 a year after that, eventually reaching zero, whereupon the mine will be worthless.

  Determine the interest rate gene paid on yearly compounding

Gene Milton borrowed a sum of $5,000 from his uncle Ben and after three years paid a sum of $5,000 and paid another $1,000 after 4 years to pay off the loan. Determine the interest rate Gene paid it the payments were based on yearly compounding.

  Determine the rm''s marginal product of labor curve

Derive the rm's marginal product of labor curve. Derive the rm's average product of labor curve. If the rm has an output quota of 5,120 widgets, how many laborers must it employ in the short-run to achieve this level of production?

  How to identify the explicit versus implicit costs

You have worked as a real estate agent for 10 years and are earning about $100,000 per year with your current agency. You prepared the following information to use in evaluating the financial feasibility of starting your own agency.

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