Large mortgage loan on the property hospital complex lies

Assignment Help Macroeconomics
Reference no: EM1327277

Pricing commonly owned complementary products

Pricing Commonly Owned Complementary Products:

You are a hospital administrator trying to raise capital to refurbish the hospital. Your local bank is reluctant to lend to you because you already have a large mortgage on the property on which the hospital complex lies. But your bankers tells you that they can lend you more if you reduce your debt by selling your parking lot to some private investors who'll lease it back to you for the next 50 years. And you'll have to renegotiate the price of the lease every 5 years. What concerns might you have about this sales-and lease-back contract?

Yield or Revenue Management 2:

Suppose your elasticity of demand for your parking lot spaces is -0.5, and price is $20 per day. If your MC is zero, and your capacity at 9 A.M. is 96% full over last month, are you optimizing?

Yield or Revenue Management 3:

Suppose your parking lot has two different consumers who use it at two different times. Daily commuters use it during the daytime, and sports fans use it at different times to park at sporting events. Daily commuter demand is variable, yet stable and known. Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. How would you price these two events differently?

Inter-temporal Price Discrimination:

Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money and compute the optima pricing scheme of the iPhone. Assume that there are equal numbers of each customer type, and that the MC of the iPhone is $100

Reference no: EM1327277

Questions Cloud

Time value of money-future present value : For below time value of money problems, complete by using formulas in Excel on each separate tab. List any assumptions and support each decision made.
Systems aid organization''s business objectives : In what ways can information systems support an organization's business objectives - Ways info systems aid organization's business objectives
What are the advantages and disadvantages of approach : consider whether or not the same people who develop the software should be tasked with maintaining it or whether or not a separate group must be tasked with development of software and separate group with maintaining it.
The implementation phase of strategic planning : Describe the importance of the implementation phase of strategic planning?
Large mortgage loan on the property hospital complex lies : Your local bank is reluctant to lend to you as you basically have a large mortgage loan on the property on which the hospital complex lies.
Employment laws of europe : Why do you think the European areas employment laws were established so much later than the US?
Explain about technology trends : Explain about technology trends - How would you go about researching emerging technology trends
Determining annuity assessment : What is the relationship between the present value of a single dollar payment formula and present value of ordinary annuity formula for same number of years and same discount rate?
Supply supporting evidence for the decision : Now that you have a normal plan and have identified the information that you need for this program, you feel you are ready to start development. You told your uncle that you would need to purchase software for this program. Since your uncle is in ..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Calculating quantity and equilibrium price

Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?

  What will be the effect of change in policy

What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?

  Identifying the nash equilibrium for bertrand

Bertand: If the firms compete on the basis of (continuous) price, what is the Nash equilibrium if the game is played once? A finite number of times? Explain clearly.

  Federal government would help to your organization

Illustrate what would you like to see done by the Federal government which would be of help to your organization

  Rise in ac and mc

Explain why both marginal and average costs are believed to eventually increase in the short run.

  Computation of change in work incentive

Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.

  Determining optimal amount of resources in production

Top Gun Marketing, Inc., offers overhead banner fly-by promotion services using their Cessna aircraft and banner creation facilities.

  Long run impact of immigration in labour market

Describe (with appropriate figure) short run and the long run impact of immigration on native labour market when the immigrants and natives are complements.

  Computing profit maximizing quantity

A firm uses a single plant with costs C = 160 + 16Q + .1Q 2  and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?

  Least cost combination of input choices

The financial analysis department at MorTex estimates that the price of a textile machine is $ 600 per day. Can management reduce the cost of assembling 5,400 units per day by purchasing a textile machine and using less labor? Why or why not?

  Classifying utility functions as risk averse

Classify the following utility functions as risk averse, risk neutral or risk seeking and draw the relevant diagrams

  Description of scarcity

Explain the trade-offs between any three of these options. In other words, what will you gain, and what will you have to give up if you choose each of the three options?

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