Transport for businesspeople and tourists

Assignment Help Macroeconomics
Reference no: EM131166738

For each of the following examples, explain how and why a monopoly would try to price discriminate.

a. Air transport for businesspeople and tourists

b. Serving food on weekdays to businesspeople and retired people. (Hint: Which group has more flexibility during a weekday to adjust to a price change and, hence, a higher price elasticity of demand?)

c. A theater that shows the same movie to large families and to individuals and couples. (Hint: For which set of people will the overall expense of a movie be a larger part of their budget, so that demand is more elastic?)

Reference no: EM131166738

Questions Cloud

Define a nondeterministic finite state automaton : Show that given a nondeterministic finite-state automaton, there is a deterministic finite-state automaton that recognizes the same language.
What is the market opportunity : Provide an description of the business and the funding secured by the venture, What is the market opportunity? What is the target market? Why are customers going to buy/use the product/services
Revenue at major cellular telephone manufacturer : Revenue at a major cellular telephone manufacturer was $2.3 billion for the nine months ending March 2, up 85 percent over revenues for the same period last year. Management attributes the increase in revenue to a 108 percent increase in shipments, d..
What is a finite state machine : Show how a vending machine that accepts only quarters and dispenses a soft drink after 75 cents has been deposited can be modeled using a finite-state machine.
Transport for businesspeople and tourists : For each of the following examples, explain how and why a monopoly would try to price discriminate. a. Air transport for businesspeople and tourists
What is backus naur form : Give an example of the Backus-Naur form of the grammar for a subset of English of your choice.
Evaluate the governor plan to reduce juvenile delinquency : In a recent speech, the governor of your state announced: “One of the biggest 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 tee..
Assess the external threats affecting this corporation : Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer
Find the nash equilibrium in the dynamic game : Draw the complete game tree and write down the strategy set for each player. (Remember that especially for the second-mover, a strategy is a complete contingent plan. Find the Nash equilibrium in the dynamic game by backward induction.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Tax on a house with an assessed value

The property value on the smith family's house had an assessed value of $250,000. The property tax was $3500. Determine the property tax on a house with an assessed value of $420,000, assuming the same tax rate.

  Is it possible for the unemployment rate to still increase

Consider a hypothetical country with a labor force of 100, of which ten persons are unemployed and 90 are employed. Then, imagine that two of the ten unemployed got jobs, i.e., became employed. How might it be possible for the unemployment rate to..

  The condo owner was formerly renting the unit every month

They could have rented it on the open marketplace for $700 per month. The condo owner was formerly renting the unit for $500 every month.

  Calculate new wage and employment level in each sector

Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..

  What is the most likely outcome in the situation

Suppose the payoffs are instead as follows If they both open at location A, theater earns 12 while the restaurnat earns 8. If both open at B, the theater earns 8 and the restaurant earns 12. IF they open at different locations, they both earn 2.

  Unique subgame perfect equilibrium

When do firms A and B exit in the unique subgame perfect equilibrium? (Hint: First establish at what time t profits turn negative as a function of the remaining firms, and then argue with generalized backward induction)

  Comparative advantage in producing computers

In one day, Spain can produce either 1000 TVs that's for 500 computers. In one day, Portugal can produce 2400 TV sets or 600 computers. Which country has the comparative advantage in producing computers? Show me how you figure this out.

  Estimate before-tax charcoal price

Give the before-tax charcoal price and quantity exchanged. Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.

  Android-platform smart phones over iphones

Suppose in the market for iPhones, the following two changes take place: (1) the cost of making iPhones rises and (2) customers begin to prefer Android-platform smart phones over iPhones. What happens to equilibrium price and equilibrium quantity?

  Question regarding the ricardian equivalence

What does the concept of "Ricardian equivalence" refer to? What are the conditions for the Ricardian equivalence to hold? Does it hold in practice?

  Elucidate a firm competes in the market

Elucidate a firm competes in the market. Does the firm engage in price or non-price competition

  Give causes for the downward tailspin of the economy

The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.

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