User Account

All Pages

What is the value in winnipeg

Assignment Help Business Economics
Reference no: EM133274350

Location Choice. Winnipeg currently has an NHL team (the Jets). Demand for Jets games in Winnipeg is given by:

PW (QW ) = 410 -3QW

Atlanta does not currently have an NHL team, but they would like to attract the the Jets.

Demand for Jets games in Atlanta is given by:

PA(QA) = 350 -3QA

The marginal cost of production in both cities is constant at M C = 50.

1. Suppose first that no subsidies (i.e., bids) are allowed.

a) Calculate the profits earned by the Jets in Winnipeg.

b) Calculate the profits earned by the Jets in Atlanta.

c) Will the team move to Atlanta?

2. Suppose now that cities can offer subsidies (i.e., bids) to attract the team.

a) What is the value (consumer surplus) in Winnipeg?

b) What is the value (consumer surplus) in Atlanta?

c) Will the team move to Atlanta?

d) How much is the winning subsidy?

e) What is the profit plus subsidy for the team?

f) What is the value minus subsidy for the winning city?

3. Suppose now that that cities can offer subsidies (i.e., bids) to attract the team, and a private benefactor publicly announces that they will donate 6000 directly toward Atlanta's subsidy if the Jets agree to move to Atlanta.

a) What is the highest subsidy that Atlanta is now willing to offer?

b) Will the team move to Atlanta now? Briefly explain your logic.

c) How much is the winning subsidy?

d) What is the profit plus subsidy for the team?

e) What is the value minus subsidy for the winning city? (Make sure to account for any donation that is made.)

Reference no: EM133274350

Questions Cloud

Domestic consumer in a month purchases electricity : A BPC domestic consumer in a month purchases electricity at P1000.00 and receives 692.8kWh units but does not know how these come about. Another month the same
Compare and contrast surge versus congestion pricing : Compare and contrast surge versus congestion pricing. Provide a specific example of each currently in use - The English auction and the Dutch auction
Why could orphan trains not operate that way today : Given what you have learned about our current Standards of Ethics, why could orphan trains not operate that way today
Property of a production function : Define constant returns to scale, and explain how this property of a production function differs from decreas ing/increasing returns to scale.
What is the value in winnipeg : 2. Suppose now that cities can offer subsidies (i.e., bids) to attract the team.
What groups would find functional perspective most useful : What kinds of groups would find the functional perspective most useful? What kinds of groups would find symbolic convergence theory most useful
Stages of childbirth : Which theories and theorists contributed to this Topic? The topic selected is Stages of Childbirth.
Price of washington capitals tickets : For each of the following five (5) scenarios, you must identify the impact on demand for and the price of Washington Capitals tickets and explain why the scenar
Broadest measure of non-standard employment : The broadest measure of non-standard employment includes four types of employment, as defined in your textbook. Define them and provide an example of each.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd