What kind of market would describe the museum

Assignment Help Business Economics
Reference no: EM13886505

The residents of the town Marina Del Rey all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $ 2,400,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visits: QD = 10 – P, where P is the price of admission.   a. Graph the museum’s average total cost curve and its marginal cost curve. What kind of market would describe the museum?   b. The mayor proposes financing the museum with a lump-sum tax of $ 24 and then opening the museum free to the public. How many times would each person visit?   c. The mayor’s anti- tax opponent says the museum should finance itself by charging an admission fee. What is the lowest price the museum can charge without incurring losses?    d. What real- world considerations absent in the above problem might argue in favor of an admission fee?

Reference no: EM13886505

Questions Cloud

How would a utilitarian allocate the water : Ten people are shipwrecked with water for only ten person days, but it will take at least 10 days to reach shore( a person dies after ine day without water) How would a Utilitarian allocate the water? Draw the production possibility curve for two peo..
Differentiation between strong and weak performers : A company decides to offer an average annual raise of 8%, although the current inflation rate is 10%. Each engineering manager decides on the best way to distribute the salary increase to his/her staff. However, if everyone gets an increase of 8%, th..
About can be accomplished by making payments : The purchase of the car that Joe dreams about can be accomplished by making payments of $300 a month for six years, if the first payment is made on February 1,1995, and the last payment is made on January 1,2001. Will Joe have saved up enough money t..
What is the difference between the equal quarterly payment : A new office building was constructed five years ago by a consulting engineering firm. At that time the firm obtains a bank loan for $100,000 with a 12% annual interest rate, compounded quarterly. What is balance due to the original mortgage if 20 pa..
What kind of market would describe the museum : The residents of the town Marina Del Rey all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $ 2,400,000 and no variable costs. Graph the museum’s average total cost curve and its marginal cost curv..
An accident occurred and an individual lose a leg : An accident occurred and an individual lose a leg. Show diagrammatically the utility functions before and after the accident. Show that if you were the Utilitarian, you would give more income to the individual after the accident, but that even after ..
Profit-stakeholder and social responsibility : How does Toyota’s approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and social responsibility?
Which might approved under rawlsian social welfare function : Explain why the change is not likely to be a pareto improvement. Which of these changes might be approved under the compensation principle? Which might be approved under a Rawlsian social welfare function?
What rate can you earn on a one-year risk-free security : The spot rate for the Japanese yen currently is ¥120 per $1. The one-year forward rate is ¥119 per $1. A risk-free asset in Japan is currently earning 8 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free U.S. secur..

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!

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