In Autarka 2 amusement parks, Alfonso's wonderland and Bernice's rides there are 9600 people who like to visit an amusement park. Each of these consumers wants to visit one park once. The consumers' homes are evenly spaced across the island, and they each suffer a disutility of $24 for each kilometre they travel to reach an amusement park. With their current technology, it costs an amusement park $12 for each customer they host. At present, the equilibrium price for an amusement park ticket is $36, and each firm has a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Assuming Bernice's rides has a profit function of Nb(Pa,Pb) = 200(PaPb - Pb^2 + 36Pb -12Pa - 288), what is Bernice's rides best response function?

D2 A. Drive-in cinema became very popular in the late 1950s and early 1960s, particularly after screening Rebel Without a Cause in 1955 with James Dean and Natalie Wood, the main young stars of the film as a couple. So, finding a good pricing for this new type of movie screening was an issue for the theatre owners. If the demand for this entertainment was more price-sensitive for couples than for single individuals, managers would be optimally better off if they could charge one admission fee for the driver of the car and an extra fee for passengers. True or false? Explain. B. Hewlett-Packard had a program in which a consumer could mail in a form together with the proof of purchase of an inkjet printer and receive a rebate of $10.00. why not just lower the price of the printer by $10.00?

why do you think brand-named goods are more elastic or less elastic than categories, especially when there are very good substitutes for Exxon gasoline available at close distances?

Q.4. In a recent speech, the governor of your state announced: "One of the blggest causes of juvenile delinquency in this state is the high rate of unemployment among 16 to 19 year olds. The low wages offered by employers in the state have given fewer teenagers the incentive to find summer employment. Instead of working all summer, the way we used to, today's teenagers slack off and cause trouble. To address this problem, I propose to raise the state's minimum wage by $1.50 per hour. This will give teens the proper Incentive to go out and find meaningful employment when they are not in school." Evaluate the governor's plan to reduce juvenile delinquency.

As the new general manager of the Grand Palladium Jamaica luxury all-inclusive resort, youare assessing your pricing policies. Currently, the price of a weekend stay is $2,000 perguest. You estimate the marginal cost of serving a guest at $1,600, and while yourpredecessor unfortunately did not leave you data from the pricing experiments and testmarketing she performed, you do know that such experiments were done, and that yourpredecessor was competent.a. What is your best estimate of the elasticity of demand for a weekend stay at the GrandPalladium?b. Your learned that at the current price, the resort is only 80% full on the weekends.Remembering the sense of belonging that you experienced in a crowded subway duringthe rush hour, you contemplate lowering the price so the resort is completely full. What isyour back-of-the-envelope calculation for how much you need to lower the price?c. After some thought you cooled to the idea of full occupancy. Instead, you focused yourenergy and…

PQ 18.02 (and 18.03) Two businesses in a market can decide to increase the amount of stores they operate. If neither business adds new stores they will each earn $10 million in profit; if both add new stores they will each earn $4 million in profit; and if one adds new stores while the other does not, the business adding new stores earns profit of $10 million and the other earns profit of $5 million. If these businesses are not colluding we would expect: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a both may or may not add new stores. b one business will add new stores and the other will not. c both will add new stores. d neither will add new stores.

Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue?  e. What is the gain in total…

From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $10 million in withdrawals from other banks’ ATM machines. On average, noncustomers earn a wage of $22 per hour and pay ATM fees of $3.00 per transaction. It is estimated that banks would be willing to maintain services for 6 million transactions at $1.25 per transaction, while noncustomers would attempt to conduct 21 million transactions at that price. Estimates suggest that, for every 1 million gap between the desired and available transactions, a typical consumer will have to spend an extra minute traveling to another machine to withdraw cash.Based on this information, what would be the nonpecuniary cost of legislation that would place a $1.25 cap on the fees banks can charge for noncustomer transactions?Instructions: Enter your responses rounded to the nearest penny (two decimal places).$ What would be the full…

Q5. Figure 18-9 shows how price is determined for express lanes in a value pricing (HOT lanes) policy. Vo represents Trip cost ($) Co Toll Toll Vo a Demand: low Trip cost the maximum amount of traffic volume that is possible without congestion the minimum amount of traffic volume that is possible without congestion O the maximum amount of traffic volume that would be willing to pay a toll O the minimum toll cost for the most congested periods Demand: high Vehicles

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