Market segment is independent of other market segment

Assignment Help Business Economics

Reference no: EM131391749

The Snow City ski resort caters to both out-of-town skiers and local skiers. The demand for ski tickets for each market segment is independent of the other market segment. The marginal cost of servicing a skier of either type is $50. Suppose the demand curves for the two market segments are:

Out-of-towners: Q0= 1000-5P

Locals: Q1= 1000-10P

(a) If the resort charges one price to all skiers, what is the profit maximizing price. Calculate how many tickets will be sold to each group. What is the total profit.

(b) If the company sells tickets at different prices to the two market prices what is the optimal price and quantity for each segment? What are the total profits for the ski resort?

Reference no: EM131391749

Questions Cloud

Where is the rejection region for the hypothesis test : If the alternate hypothesis states that µ (equal sign with a slash through it) /= 4,000, where is the rejection region for the hypothesis test?

What is the reasons for having health insurance coverage : Are there individuals who choose not to be covered by health insurance; and why? Why medical insurance require copays? Are they necessary? How are they determined? What's the reasons for having health insurance coverage? Are different levels to healt..

Compute the actual deficit : Compute the amount of taxes at natural GDP. Compute the amount of taxes at real GDP. Compute the actual deficit. Compute the N.E.D (Natural Employment Deficit).

Policy were implemented : It has been suggested that the highest paid people in industry and government should receive no more than two-and-a-half times as much take-home pay as the lowest-paid workers. Do you agree with this suggestion? Why? What do you believe would happen ..

Market segment is independent of other market segment : The Snow City ski resort caters to both out-of-town skiers and local skiers. The demand for ski tickets for each market segment is independent of the other market segment. The marginal cost of servicing a skier of either type is $50.

What does the term scope of employment : What does the term “scope of employment” refer to? What is its relevance in this case? What are some of the factors courts will look to in determining whether a particular act occurred within the scope of one’s employment?

Required reserve ratio for checkable deposits : Suppose the Fed raises the Required Reserve Ratio for checkable deposits from 5% to 10%. What happens to the numerical value of the money multiplier (say M1 money multiplier) as the result? What will happen to the Money Supply as the result of such a..

Government correctes negative externalities through taxation : The perfectly competitive market may be inefficient if there are negative externalities present in the market. the perfectly competitive market may be innefficient if there are positive externalities present in the market. In general, the government ..

Culture favors public solutions over market solutions : Business solutions e.g. offshoring labor, may make sense at the individual company level but not at the aggregate national level. On the whole, US culture favors public solutions over market solutions. In the struggle and lobbying for political influ..

User Account

All Pages