Now the county government give the project to the company by way of bidding, considering the status quo of management, the county government gives the company some subsidies and pricing power, construction costs and benefits of all belong to the company. Far away from the county to a town around the mountain road, the county government considers to make a tunnel, and the passing vehicles should pay fees, estimated the demand function of through the tunnel: P=25—0.5Q P：fees per car Q：the number of cars through the tunnel (2) Qday=36-1.5Pday+20r Qnight=10-0.5Pnight+30r r：The rates of economic growth In each situation, what's the maximal price of bidding for the company? What is the focus of the debate in this case? Can we use demand price elasticity theory and the knowledge of economy profit to help managers to make the right decisions?
: The project of highway road construction
Now the county government give the project to the company by way of bidding, considering the status quo of management, the county government gives the company some subsidies and pricing power, construction costs and benefits of all belong to the company.
Far away from the county to a town around the mountain road, the county government considers to make a tunnel, and the passing vehicles should pay fees, estimated the demand function of through the tunnel:
P=25—0.5Q
P：fees per car
Q：the number of cars through the tunnel
(2) Qday=36-1.5Pday+20r
Qnight=10-0.5Pnight+30r
r：The rates of
In each situation, what's the maximal
What is the focus of the debate in this case?
Can we use demand price elasticity theory and the knowledge of economy profit to help managers to make the right decisions?
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