sports_econ_handout_02

Elvira College has an enrollment of 1,000 students and is located in a small Midwestern town named Johnsonville. Johnsonville has a total population of 2,500 people. The nearest town is 20 miles away. Most of the residents shop locally, but they travel about once a month to the larger city and pick up the large-ticket items. Johnsonville has one fairly good-size supply store named Jameson's Grocery. The only other place in town where you might buy supplies is at the gas station/convenience store located on the edge of town. What competitive situation is Jameson's Grocery experiencing?Competitive Situation:Explanation:

Question 2. 7. commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P- 22 - 0.2Q, where P is the average price of a ticket and Q represents the number of seats (expressed in thousands). The local stadium seats a maximum of 56,000 per game. Suppose the owner offers you 10% of the revenues. If you can only choose a uniform per-ticket price, what is the maximum amount you can carn per game? (Note: Assume that all seats and all games are the same in this problem.) The owner of a baseball team and local stadium has

Jenny is going to rent a truck for one day. There are two companies she can choose from, and they have the following prices. Company A charges $90 and allows unlimited mileage. Company B has an initial fee of $55 and charges an additional $0.70 for every mile driven.

Explain Briefly with zero plagiarism   In the selling process or in negotiations, who typically has the upper hand, the buyer or the seller?

Metropolitan Utilities District currently charges residents in Omaha $1.23 per cubic feet of water use for each home's first 900 cubic feet of water used, $1.73 per cubic feet of water use for each home's usage rate between 900 and 3,000 cubic feet, and $2.22 per cubic feet of water use for anything over 3,000 cubic feet of use. The pricing structure is an example of: over-use and inefficient pricing. too few water permits being traded on the local water market. block pricing. conservation pricing.

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

The supply and demand curves of a product are shown in Figure 6.13. Approximate the difference in the total gains from trade if the price is artificially increased from the equilibrium price of p = 95 to p*= 110. p(Sunit) 200 180 888888888 160 140 120 100 50 100 150 200 Figure 6.13 O(a) $137.50 Ⓒ (b) $3,250 O (c) $4,675 (quantity)

Exercise 3.1 A publisher must take a decision on the pricing of a new book based on the following demand estimates: Price 100 90 80 70 60 50 40 30 20 10 0 Number of copies demanded 0 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000 1 000 000 According to his contract, the writer gets two million euros for writing the book and the marginal cost of publishing the book is constant at €10 per book. a) Calculate the total income, total cost and profit corresponding to each amount. How many books would a profit-maximizing publisher print? What price would she charge? (b) Calculate the marginal revenue. What is the difference between marginal revenue and price? Explain your answer. c) Draw the curves of marginal revenue, marginal cost and demand. For what output level does the marginal revenue curve cut the marginal cost curves? What does that mean?

Problem 1

The following graph input tool shows the daily demand for hotel rooms at the Peacock Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Average American household income Initial Value $50,000 per year $200 per roundtrip Roundtrip airfare from San Francisco (SFO) to Las Vegas (LAS) Room rate at the Grandiose Hotel and Casino, which is near the Peacock $250 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Peacock's Hotel Rooms 500 450…

: Location Choice. Dallas currently has an NBA team (the Mavericks). Demand for Mavericks games in Dallas is given by: PD(QD) = 160 − 2QD Austin does not currently have an NBA team, but they would like to attract the Mavericks. Demand for Mavericks games in Austin is given by: PA(QA) = 180 − 2QA The marginal cost of production in both cities is constant at MC = 40. 3. Suppose that the consumer surplus in Dallas is actually 2000, but all other values remain the same. a) If subsidies are banned, where would the team locate? b) If subsidies are allowed, would the team move to Austin? c) If subsidies are allowed, how much is the winning subsidy? d) If subsidies are allowed, what is the profit plus subsidy for the team? e) If subsidies are allowed, what is consumer surplus minus the subsidy?

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When Home depot charges $93 for a children's game, they sell 100 units.  When they charge $85, they sell 120 units. If they were to give away the game for free, how many units (Q) would be demanded?

QUESTION Canning Transport is to move goods from three factories (origins) to three distribution centers (destinations). Information about the move is given below. Solve the problem using the transportation simplex method and compute the optimal total shipping cost. Origin Supply A 200 B 100 C 150 Destination Demand X 50 Y 125 Z 125 Shipping costs Destination Origin X Y Z A 3 2 5 B 9 10 C 5 6 4 (Source B cannot ship to destination Z) Hint: 1: Check if dummy row/column is needed 2: Assign "M" if the shipping cannot done 3: Develop the transportation tableau 4: Phase I: Use MINIMUM COST METHOD to find the initial feasible solution 5: Check if the problem degenerate or not (if so add artificial cell, if not proceed to Phase II) 6: Perform MODI METHOD and STEPPING STONE METHOD to find the optimal solution

Use the table below to answer the following questions:QuantityDemand (Price)Marginal RevenueMarginal CostAverage Cost1$120012005005002110010002753883100080022533349006002503135800400400330670020050035876000700407 Are there consumers who want the product but are not willing to pay the profit-maximizing price the firm will charge? How can you tell?If the firm could charge every consumer exactly what that consumer was willing to pay (called perfect price discrimination), would the quantity the firm produced increase, decrease, or remain the same? Would the firm’s profits increase, decrease, or remain the same? Explain your answers.

P (S), MC 125 99 79 75 D. 139 99 MR 45 Suppose that Figure #1 depicts the demand conditions for the City of Brantford with respect to a potential Wayne Gretzky Museum. The owners of the exhibits (the Gretzky family) have decided that the price per exhibit will be $99. They have also decided that the winning bid for the museum will be required to take all 99 items. Using Figure #1 (and using the associated information), calculate the remaining consumer surplus for Brantford if the Gretzky's are a monopoly and can exploit an all-or-nothing demand curve. O $585 $90 $45 $540

Two coal-burning electric power plants are emitting mercury which impairs cognitive development in children. Plant A's marginal abatement cost is MCA= 1.2q and plant B's marginal abatement cost is MCB = 0.3q. Each firm initially emits 50 units and the EPA would like to reduce total emissions to 40.   If the EPA follows a command-and-control policy and tells each firm to abate by the same amount, what will be the total costs?     If firms could trade permits, what would happen to total costs? Why?

******ONLY ANSWER PART 3 IN PICTURE PLEASE**** Demand for Thunder games in Oklahoma City is given by: P(0)=430-20 Seattle does not currently have an NBA team, but they would like to attract the the Thunder. ok ok ok Demand for Thunder games in Seattle is given by: P (Q) = 490 -20 The marginal cost of production in both cities is constant at MC = 70. Suppose that the Thunder faces an extra fixed cost of 10000 in Seattle because they need to build a new stadium if they move. If the Thunder decides to stay in Oklahoma City, they don't need to pay the fixed cost. Cities can still offer bids to attract the team. a) Will the Thunder move to Seattle? b) How much is the winning bid? c) What is the profit plus bid for the Thunder? d) What is the value minus bid for the winning city?

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Target produces a good with significant network externalities.  The willingness to pay equation is p = 1 – q + 2.5q2 .     Show on the graph the firm’s demand curve at each price from 0 < P < 3.      What three equilibrium values of q may result if Firm A sets a price of $1.5?  Indicate them on your graph.  [the quadratic equation helps you solve for one of them.]      Are the equilibria you identify stable?  Does stability matter to Acme?

The costs of tickets and transportation to and from the game, as well as the amount of time the fan invests in attending the event is called: Owayfinding demands sport supply and demand consumption cost ancillary cost

Consider PNW Airlines, an airline focused on transporting cargo. Their fleet is composed of four cargo airplanes. Total cargo capacity of the fleet is 100,000 cubic feet. The monthly cost of maintaining and operating the fleet is $50,000. Market research indicated that the demand curve for cargo capacity is d=300,000-25,000p where d is the demand across all segments and p is the transport price per cubic foot. Question 1: What is the price that maximizes profit for PNW Airlines if all the demand comes from a single segment? What is the demand if PNW sets price to be the value found in Question 1? How much profit does PNW Airlines make?

Q1. Suppose the government is considering an increase in the toll on a certain stretch of highway from $3 to $4. At present, 1 million cars per week use that highway stretch; after the toll is imposed, the number of cars per week will change according to its price elasticity of demand of -0.8 (this elasticity value is estimated based on the initial-value method). If the marginal cost of highway use is constant (i.e., the supply curve is horizontal) and equal to $3 per car, what is the net annual cost to society attributable to the increase in the toll? (your answer must be rounded off to the nearest million dollars per year, i.e., no decimal places; there are 52 weeks in a year)

Suppose there are 800 regular Harry Potter fans and 200 fanatical Harry Potter fans wishing to attend the next theatre production of Hany Potter. The theatre has two classes of seating: ordinary seating and premium seating. The willingness-to-pay of each type of theatre-goer for the two classes of seating, as well as the marginal cost per customer for providing each class of seating, are summarized in the table below: Ordinary Seats Premium Seats $160 $100 Willingness-to-pay: Regular Hary Potter Fan Willingness-to-pay: Fanatical Harry Potter Fan Marginal cost per customer $40 $140 $300 $120 Suppose the concert organiser is considering selling the two dlasses of seats but cannot identify between regular and fanatical fans using observable characteristics. Which of the following is correct? a) The organiser should charge $100 per ticket for both ordinary and premium seats. b) The organiser should charge $160 per ticket for ordinary seats, and $300 per ticket for premium seats. c) The…

Are there opportunities to combine volumes of spending from different busi- nesses, and standardize product requirements, reduce the number of suppliers providing these products, or exploit market conditions to receive better pricing?

The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. (? 100 90 Monopoly Outcome 80 70 60 50 40 ATC 30 MC 20 10 MR D 2 6 8 10 12 14 16 18 20 QUANTITY (Number of subscriptions) Which of the following statements are true about this natural monopoly? Check all that apply. O In order for a monopoly to exist in this case, the government must have intervened and created it. O The cable company is experiencing diseconomies of scale. O The cable company is experiencing economies of scale. O It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. True or False: Without government…