What is the concert hall producer surplus

Assignment Help Business Economics

Reference no: EM131097375

Suppose that a concert hall faces the following demand curve for its evening shows: QE =40−.8P and the following demand for its afternoon shows: QA =24−.8P where Q is the number of tickets in thousands and P is the price of a ticket in dollars. Assume that the concert hall’s marginal cost is constant at $10 per ticket. (a) Suppose the concert hall charges the same price for all shows. What is its profit- maximizing price? How many tickets are sold at this price? What is the concert hall’s producer surplus? (b) Now suppose the concert hall decides to charge more for evening shows than for afternoon shows. To maximize its profit, what price should it charge for an evening show? For an afternoon show? How will the concert hall’s producer surplus change as a result of this pricing strategy?

Reference no: EM131097375

Questions Cloud

How the incremental method relates to the branch method : MIDTERM EXAM - PAD 506: PUBLIC BUDGETING AND FINANCE. Charles E. Lindblom, "The Science Muddling Through," Public Administration Review 19 (Spring 1959): 79-88. Analyze how the incremental method relates to the branch method

Realizing the importance of answering question : The first objective listed for this chapter is: "Realizing the importance of answering the question 'Why do I work?'" As a follow up question the text asks: "How do you define "success" in your work?" (p. 144) So, why do you work?

Find the equilibrium price-quantities and profits : Consider two Bertrand competitors in the market for brie, Franc ¸ois and Babette. The cheeses of Fran ¸cois and Babette are differentiated, with the demand for Fran ¸cois’ cheese given by qF = 30 − pF + pB , Find the equilibrium price, quantities, an..

Write a function called power that takes a double value for : Raising a number n to a power p is the same as multiplying n by itself p times. Write a function called power () that takes a double value for n and an int value for p and returns the result as double value. Use a default argument of 2for p, so that ..

What is the concert hall producer surplus : Suppose that a concert hall faces the following demand curve for its evening shows: QE =40−.8P and the following demand for its afternoon shows: QA =24−.8P where Q is the number of tickets in thousands and P is the price of a ticket in dollars. What ..

Preferred choice wayne center for nursing : Enter the 10468 zip code in the box asking for a location or zipcode and select one of the Bronx nursing homes that will be listed. Review all aspect (staffing, survey, quality measures) and write a paragraph to summarize what you learned from vi..

What will be its profit-maximizing price-producer surplus : Suppose Netflix’s representative customer’s demand curve in the market for DVD rentals is Q = 20 − 10P, where Q is the number of DVDs rented per month and P is in dollars per DVD. If Netflix charges a single price per DVD regardless of how many DVDs ..

Find the long-run equilibrium price in the market : Assume a perfectly competitive industry. Each firm in the industry faces a long-run total cost such that LTC=14000q−80q2+q3 and LMC=14000−160q+3q2. Find the long-run quantity produced by each firm. Find the long-run equilibrium price in the market.

What is marginal revenue from selling another kitten : Josie’s Pussycats sells ceramic kittens. The marginal cost of producing a particular kitten depends on how many kittens Josie produces, and is given by the formula MC = 0.8q. Assume that the ceramic kitten industry is perfectly competitive, and Josie..

User Account

All Pages