Why hotel manager understand theory of peak-load pricing

Assignment Help Microeconomics
Reference no: EM13874345

1. Explain why a hotel manager should understand the theory of peak-load pricing.

2. In markets for electricity, it is now believed that generation is an activity that should be deregulated and governed by competition. In many cases the price of electricity is determined through a power pool. The power pool operator takes bids for supply and dispatches generation-lowest bidders first-until supply equals demand. The bid of the marginal supplier determines the pool price. Suppose that electricity generation has constant returns to scale, that capacity costs are sunk, and that output in the short-run is limited by capacity. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient. How does your analysis change if there are small economies of scale?

Reference no: EM13874345

Questions Cloud

Heating element in the water : By placing it on an electric range and By placing a heating element in the water. Which method is a more efficient way of heating water? Explain.
Develop a customer service tool to keep track of customers : You have been asked to develop a customer service tool to keep track of customers and sales at a hardware supply company. The final product of this tool will include a MySQL database that includes all of the customer information, Web forms that will ..
Explain advantages and disadvantages of privatisation : Question : Explain about advantages and disadvantages of privatisation in 3 to 4 pages
Functions have identified for a business or personal task : Identify three (3) Microsoft Excel 2013 functions that you believe to be the most useful within the application. Next, describe one (1) way in which you would consider utilizing each of the functions you have identified for a business or personal tas..
Why hotel manager understand theory of peak-load pricing : Explain why a hotel manager should understand the theory of peak-load pricing. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient.
Who chooses what and why and what is the outcome : For this essay, choose one of the following four moments in the Aeneid and answer the questions: Moments-  The Trojans' decision to bring the Trojan horse into Troy: Aeneid 2.1J345. In the first body paragraph, you must indicate: Who chooses what and..
Estimate the minimum electric power consumption : Consider a fan located in a 3 ft = 3 ft square duct. Velocities at various points at the outlet are measured, and the average flow velocity is determined to be 22 ft/s. Taking the air density to 0.075 lbm/ft3 estimate the minimum electric power co..
The income tax rate on all items : At the beginning of 2010, JR Company's stockholders' equity was as follows:
Prepare the staffing plan for the expansion : Case about a laundry company in Abu Dhabi that you will be doing the six exercises on. You are expected to provide your response - Prepare the staffing plan for the expansion

Reviews

Write a Review

Microeconomics Questions & Answers

  What does gdp measure

First, what does GDP measure? Even if we prefect the measure by correcting for price increase

  Explain the key microeconomic terminology

What is the purpose of the policy Why is the policy necessary The welfare of consumers, producers, and society (the winners and losers) before and after the policy The distribution of costs and benefits Does government intervention improve the sit..

  Choose the correct price-elasticity label

Normal 0 false false false EN-US X-NONE X-NONE Choose the correct price-el..

  Find marens consumption in the two periods

Find Marens consumption in the two periods ( as a function of m1,m2 and r)3) If the interest rises, how will Maren chanhe her consumption in each of the two periodes

  How much output is sold at these prices

what are these prices? b) How much output is sold at these prices and what is the profit in each market? c) Based on your answer in part a, justify why would the firm charge same or different prices.

  Can country continue to afford such deficits indefinitely

Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely? What problems might it face in the future?

  Describe the given situation a from strictly legal

discuss the following situation a from the strictly legal viewpoint b from a moral and ethical viewpoint and c from the

  Determine the market equilibrium price for coffee beans

Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen from 400 tons per year to 250 tons per year.

  Environmental problem does impact on the community

five critically discuss of five way in which the human or environmental problm impact on the community about food production.

  Compare the adjustment process to the new equilibrium

The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.

  When advanta corp decided that it wished to begin charging

when advanta corp. decided that it wished to begin charging a fee to holders of its credit cards for periods during

  What is the real rate of return from the account

Suppose that the price level rises by 5% in a year. You have $1000 in a savings account at 3% interest rate. What is the real rate of return from the account?

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