Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is p=120-2g. where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $40, which is the marginal cost his round imposes on the Club. What membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round. How much extra profit does the Club earn by using two-part pricing? The profit-maximizing membership fee (F) is $. (Enter your response as a whole number.)
Q: It is the week before the Yule Ball Dance, and Victor and Ron are each contemplating whether to ask…
A: Nash equilibrium refers to the equilibrium of the game where there is no incentive for the players…
Q: 2. Question 3. Derive the price elasticity for the following functions. Show your work. a. q-50-3p…
A: Price elasticity is a measurement of how a change in price or in the amount of a supply affects the…
Q: An economy’s capital stock was $46.3 billion at the end of 2016, $46.6 billion at the end of 2017,…
A: Net investment is the amount of money that is invested in the production of goods and services. or…
Q: When the article said that Bird was making 19% gross margin profit, this is O A. Accounting profit…
A: Profits are the rewards earned by the business by selling its goods to the consumers. Business take…
Q: Which is not a fixed cost? Group of answer choices an insurance premium of $50 per year, paid last…
A: Fixed cost are the cost that doesn't change over the change in quantity. Fixed cost remain fixed at…
Q: decreasing taxes on financial capital to increase the pace of capital accumulation
A: B. The government can boost economic growth by decreasing taxes on financial capital to increase the…
Q: A monopoly's inverse demand function is as follows: P = 1450 - 58Q. Its total cost function is as…
A: The inverse demand function will be considering the price to be a function of quantity.…
Q: 11. The law of diminishing marginal returns: a. is relevant in both the short and the long-run. b.…
A: The law of diminishing marginal returns:
Q: A recent government study reported that a college degree is worth an extra Php 35680 per quarter…
A: Given, i = 6% i.e 0.06 n = 40 years Extra amout per quarter = Php 35680
Q: 14. A firm’s long-run total costs are given in the table below. Output Long Run Total Cost…
A:
Q: The Idaho Corporation earned $23,458,933 before interest and taxes for the year ended December 31,…
A: The moral obligation of paying taxes stems from the virtue of commutative justice. This theory was…
Q: Contingency planning involves a. identifying aspects of a business that require changes in…
A: A contingency plan is a strategy created to assist an organisation in effectively responding to a…
Q: Average incomes rise from €20,000 to £21,000 per annum. Sales of playing cards fall from 4 million…
A: Elasticity is the concept that is used to determine the changes in demand or supply due to changes…
Q: production of $1.00 worth of food requires $0.30 worth of food a $0.10 worth of housing, and the…
A: We form consumption matrix in a way that both sides row and column food and housing is mentioned So…
Q: The city of Cedar Rapids has a large number of video poker arcades. The demand by patrons for the…
A: Quantity demanded refers to the number of units of the goods demanded by the consumers at a…
Q: The following figures are from data on Good Island Economy Items $m Net private investment…
A: Gross private investment is a metric used to describe how much money corporations spend…
Q: With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.…
A: Here, given information is: Fixed cost: $400 ATC: $3 AVC: $2.50 To find: output
Q: A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control…
A: Marginal cost The change in overall cost caused by an increase in the amount produced, or the price…
Q: Useful Life= 10 years Calculate the annual depreciation expense of this asset using the…
A: Given initial cost = 1750,000 P Salvage = 150,000 Time = 10 years
Q: Suppose that Monique eats lobster eight times per month when the price is $10 and six times per…
A:
Q: write a explanation about UN sustainability goals 8 and 12 and elkington's triple bottom line and…
A: Goal 8: Decent work and economic growth: Promote comprehensive and effective employment, fair work…
Q: 1. Suppose a person's utility is equal to U = VY and the initial income is $80,000. Medical expenses…
A: U = (Y)1/3 Initial Income = $80,000 Medical expenses = $40,000 Probability of getting sick = 25%
Q: Mike and Sophie are splitting up and need to decide who will get the car they purchased together.…
A: given that, Mike's bid is $5000 Sophie's bid is $4500
Q: If the government's budget changes to a surplus of $2.0 trillion, the real interest rate is _______…
A: If the government's budget changes to a surplus of $2.0 trillion, the real interest rate is…
Q: Consider each scenario independently. In each of the following cases, use verbal and graphical…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: You and your best friend want to hire a professional photographer to take pictures of your two…
A: Producer surplus means the difference between total marginal cost and revenue.
Q: The price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per…
A: What is Consumer Price Index. Definition: A comprehensive measure used for estimation of price…
Q: CBS is selling advertising for its broadcast of the AFC championship game. The station’s demand for…
A: Marginal cost is the change in total cost that is obtained from production of an additional unit.…
Q: Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has…
A: The demand is an economic idea that connects with a customer's longing to buy labor and products and…
Q: A. Suppose the demand and supply for the market of cigarettes in a city is given by QD = 400-50P, Qs…
A: Disclaimer:- since you asked multiple questions we are solving the 1st questions as per guidelines.…
Q: Use the sum-of-the-years'-digits depreciation method to make a depreciation schedule (first two…
A: Given First cost (FC)=$28000 Salvage value (SV)=$2600 The expected life of forklift =10 years.…
Q: Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is…
A: Introduction Average fixed costs a total fixed costs per unit of output. It is total fixed costs…
Q: On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth…
A: Net investment = Capital investment - Depreciation. Depreciation is the normal wear and tear…
Q: uring World War I and World War II, the U.S. government spent large sums of money on the war effort.…
A: The equilibrium is established where the aggregate demand and aggregate supply. The change in demand…
Q: For a refreshing beverage consumers can choose blueberry or strawberry smoothies, but do not drink…
A: Equilibrium is a state of rest in the market where the forces are in a steady state and do not…
Q: Continue your analysis of the video poker market in Cedar Rapids: demand by patrons for the games…
A:
Q: Use the accompanying graph to answer the following questions. Assume the company makes 83,000 parts…
A:
Q: A chemical processing corporation is considering three methods to dispose of a non- hazardous…
A: Given There are three alternatives and each alternative has different expected lives. To perform…
Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 7 years…
A: The rate of interest compounded bi-monthly states that the interest will be compounded every two…
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $900,…
A: The investment's annual income is divided by the stock's market price to calculate the current…
Q: To understand the differences in global trade operations in comparison to those carried out between…
A: In the business environment the globalization and nationalization are often considered being…
Q: Assume that the real risk-free rate is r* = 2% and the average expected inflation rate is 3% for…
A: Introduction A bond is a debt security that resembles an IOU. Borrowers create bonds to get money…
Q: 5. Suppose the production function is given by Q=f(L, K) = employed, Answer the following questions:…
A: Given information: Q = 5L1/2K1/2---------------> Production function Where Q is quantity; L is…
Q: 1. Suppose a person's utility is equal to U = VY and the initial income is $80,000. Medical expenses…
A: Here we are given the uncertain scenario and consumer's hence consumer's income also depends on this…
Q: What is the elasticity of demand at Q = 500 when the demand equation is P = 1000 - Q? Recall that,…
A: An elastic demand is one in which the change in quantity demanded due to a change in price is large.…
Q: The pink tax refers to the phenomenon where government taxes feminine products such as tampons and…
A: 1. The government could subsidize feminine products so that they are more affordable for women. 2.…
Q: how much money must you invest today in order to withdraw P1000 per month for 10 years if the…
A: Given that, Withdraw Amount = 1000 Rate of Interest = 12% Time Period = 10 years
Q: An index number that measures a basket of related items is called?
A: The Consumer Price Index (CPI) is a computation of the average change over time in the prices paid…
Q: Greg has the following utility function:u=x63x937. He has an income of $66.00, and he faces these…
A: Compensating variation is the additional money that the consumer would need to reach its initial…
Q: Which of the following is true? a. When the average cost is decreasing, the total cost must also be…
A: Which of the following is true?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You are the manager of a golf course. For simplicity assume that you only have two potential customers – a high demand customer whose inverse demand for golf services is given by P = 10 – 0.5Q and a low demand customer whose inverse demand for golf services is given by P = 8 – 0.5Q. Suppose the marginal cost to the golf course of each round of golf is zero.Suppose you have to charge both players the same two-part pricing strategy. Which of the following pricing strategies will yield the highest profit for you? A. Charge a fixed fee of €100 and a per unit fee of zero B. Charge a fixed fee of €64 and a per unit fee of zero C. Charge a fixed fee of €64 and a per unit fee of €4 D. Charge a fixed fee of €128 and a fixed fee of zero.Rosario has to finish her dissertation within 10 days, that is, at time t = 1, t = 2, ..., or t = 10. It takes one day to finish the dissertation, and on the day Rosario does so, she incurs an instantaneous disutility cost equivalent to $10. Rosario is a hyperbolic discounter with β = 0.85 and δ = 1. Her (instantaneous) utility function is u(x) = x.(a) Suppose the university has a system in which it charges Rosario $1 in fees for every day she does not finish her dissertation (paid each day that it is incurred). E.g., finishing on day 2 incurs a cost of $1 paid on day 1. When does Rosario finish if she is naive? How much does she pay in penalties? (Hint, past penalties are sunk, e.g., from the perspective of t = 2 self, any penalties paid in t = 1 are sunk, and do not factor into decisions or utilities going forward.)(b) Still in the $1/day system, when does Rosario finish if she is sophisticated?(c) Now suppose that the university has a deadline system: Rosario incurs a penalty of…You are a medical group manager. Some market research has suggested that the price elasticity of demand for the services of your physicians is −4.1. The marginal cost for the average unit of physician service in your group is approximately $536. A. Using the economic pricing model formula, calculate your profit-maximizing price for each unit of physician services. B. Suppose that your medical group is considering new contracts with two particular businesses to provide physician services to their employees. If the marginal cost for each service unit is the same as with the rest of your customers, but the price elasticity of demand from the first new business customers is −0.9, and the second group of business customers is −4.4, how would that change your profit-maximizing price for each of the new groups? Would you recommend that your medical group obtain contracts with both new groups, just one of them or none? Explain your reasoning. C. In order to maximize your profits, what specific…
- There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student’s demand of printing paper is Q=1−P, for P<1.The non-student population is 40, and each non-student’s demand of printing paper is Q=3−P, for P<3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. Suppose OfficeMax cannot offer student discounts, and every customer has to pay the same price P. Derive the aggregate demand curve (for both students and non-students), and illustrate it in a diagram.To join the Quiet Reading Society, members pay a fixed annual fee of F, and then they can read any number of books at an extra charge P per book. Each member’s willingness to pay for Q books is P = 100 - 5Q. (Here, Q refers to the number of books a member reads completely, but partial quantities are also possible.) The club has fixed costs, but incurs no additional cost when a member checks out a book to read. What does the optimal two-part pricing scheme look like?A. It costs nothing to join the club, and then books can be read for $50 each.B. It costs $100 to join the club, and then books can be read for $5 each.C. It costs $500 to join the club, and then books can be read for $10 each.D. It costs $1,000 to join the club, and then books can be read for free.If consumers can easily switch to a close substitue when the price of a good increases, demand for that good is likely to be:
- Suppose research at Panasonic reveals that prospective buyers are anxious about buying high definition television sets. What strategies might you recommend to the company to reduce consumer anxietyLet's say that the demand side of the market for Blue Soda is comprised of 3 leading agents/individuals: Anthony, Brad, and Claire. Let P be the price of 1 liter of Blue Soda, and Qd be the quantity demanded of Blue Soda in liters. Here are the key points to the problem: - Anthony buys only one liter of Blue Soda if the price of it falls below his choke price of $10. - Brad's demand for Blue Soda is defined by QdB = 5 - P/2 - Claire buys 2 liters if the price is below $5, 1 liter if the price is between $5 and $10, and nothing if the price is above $10. Using this information, please sketch the individual demands and the market demand by aggregating the three agents/individuals. Label the graph clearly. Please make sure to sketch the individual demands first and then sketch the market demand.There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student’s demand of printing paper is Q=1−p, for p<1. The non-student population is 40, and each non-student’s demand of printing paper is Q=3−p, for p<3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. OfficeMax introduces printing paper in smaller packages targeting the students. The non-students are willing to pay 5 for a smaller package and 7 for a standard package, and the students are willing to pay 3 for a smaller package and 4 for a standard package. If a consumer does not purchase, her utility is zero. Find all the prices, Pn for a smaller package and Ps for a standard package, so that the students choose the smaller packages and the non-students choose the standard ones.
- Suppose the monthly demand for golf services at a golf club is given by the inverse demand function, P = 20 – Q. The marginal cost to the golf club for each round is €2. There are 10 customers with exactly the same inverse demand functions. The fixed costs of running the club are €500 a month. At the moment the golf club charges each person €11 per round and each person plays 9 rounds of golf a week. The unit price that the club should charge each player under an optimal two-part tariff is 4 2 162 11There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student’s demand of printing paper is Q=1−p, for p<1.The non-student population is 40, and each non-student’s demand of printing paper is Q=3−p, for p<3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. Suppose OfficeMax offers a student discount, $1, so students only pay $0.50 and non-students pay the full price, $1.50. What is the deadweight loss in this situation? What is the deadweight loss if there was no discount and both students and non-students share an optimal price of $1.30?A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men do and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $63 and one with auto-defrost at $77, while women value a simple microwave at $77 and one with auto-defrost at $140. Suppose the manufacturer is considering three pricing strategies: 1. Market a single microwave, with auto-defrost, at $77, to both men and women. 2. Market a single microwave, with auto-defrost, at $140, to only women. 3. Market a simple microwave to men, at $63. Market a microwave, with auto-defrost, to women…