Why hotel manager understand theory of peak-load pricing

Assignment Help Microeconomics
Reference no: EM13874345

1. Explain why a hotel manager should understand the theory of peak-load pricing.

2. In markets for electricity, it is now believed that generation is an activity that should be deregulated and governed by competition. In many cases the price of electricity is determined through a power pool. The power pool operator takes bids for supply and dispatches generation-lowest bidders first-until supply equals demand. The bid of the marginal supplier determines the pool price. Suppose that electricity generation has constant returns to scale, that capacity costs are sunk, and that output in the short-run is limited by capacity. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient. How does your analysis change if there are small economies of scale?

Reference no: EM13874345

Questions Cloud

Heating element in the water : By placing it on an electric range and By placing a heating element in the water. Which method is a more efficient way of heating water? Explain.
Develop a customer service tool to keep track of customers : You have been asked to develop a customer service tool to keep track of customers and sales at a hardware supply company. The final product of this tool will include a MySQL database that includes all of the customer information, Web forms that will ..
Explain advantages and disadvantages of privatisation : Question : Explain about advantages and disadvantages of privatisation in 3 to 4 pages
Functions have identified for a business or personal task : Identify three (3) Microsoft Excel 2013 functions that you believe to be the most useful within the application. Next, describe one (1) way in which you would consider utilizing each of the functions you have identified for a business or personal tas..
Why hotel manager understand theory of peak-load pricing : Explain why a hotel manager should understand the theory of peak-load pricing. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient.
Who chooses what and why and what is the outcome : For this essay, choose one of the following four moments in the Aeneid and answer the questions: Moments-  The Trojans' decision to bring the Trojan horse into Troy: Aeneid 2.1J345. In the first body paragraph, you must indicate: Who chooses what and..
Estimate the minimum electric power consumption : Consider a fan located in a 3 ft = 3 ft square duct. Velocities at various points at the outlet are measured, and the average flow velocity is determined to be 22 ft/s. Taking the air density to 0.075 lbm/ft3 estimate the minimum electric power co..
The income tax rate on all items : At the beginning of 2010, JR Company's stockholders' equity was as follows:
Prepare the staffing plan for the expansion : Case about a laundry company in Abu Dhabi that you will be doing the six exercises on. You are expected to provide your response - Prepare the staffing plan for the expansion

Reviews

Write a Review

Microeconomics Questions & Answers

  Compute an approximation using blocks of 10 wolves

Compute an approximation using blocks of 10 wolves and compute an exact value by finding the total area under person 1's demand curve.

  Write at least one economic benefit to increase

state at least one economic benefit to increased international trade. why might a corporation prefer to obtain

  Find the future value one year from now of a

Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years

  Connection between probability and economics

Modern economics, neoclassical economics in particular, often relies on probability. Review this article for more information on the connection between probability and economics.

  Provide a total cost summary

Build your cost model but calculate labor, equipment depreciation, material, and facility costs separately. Then provide a total cost summary.

  Describe dont just mention what happens to federal funds

explain dont just mention what happens to the federal funds rate the borrowed monetary base i.e. discount loans and the

  If pizzos firms marginal cost curve is 296qb where qb is

james pizzo is president of a firm that is the industry price leader that is it sets the price and the other firms sell

  What must rebate-determining time of 28 minutes be changed

a muffler company advertises that you will receive a rebate if it takes longer than 28 minutes to replace your muffler.

  Draw the demand curve for product

Draw the demand curve for your product (market share vs. price). If a segment is indifferent between buying and not buying, assume they will buy.

  How does either team have a dominant strategy

If they both televise many games, they split and perhaps over saturate the market and both receive $5M from television revenue. If they both limit appearances on television, they take advantage of the high demand for their limited product

  The oil marketthe world oil market has been through

the oil marketthe world oil market has been through tremendous changes in the past decades resulting in significant

  Indifference curves-types of customer preferences

Draw indifference curves to represent following types of customer preferences. Marie likes milk, but neither likes nor dislikes coffee. Marie likes coffee with milk but she always wants 1 cup of coffee with half a cup of milk.

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