Willingness to pay, Microeconomics

Assignment Help:

Suppose one were asked to recommend a price for the output of a proposed downtown parking garage, so that the project would have as large a Net Present Value as possible.  In this case, the optimal parking price or rate is the one for which the last person's willingness to pay for parking will exactly equal that person's marginal cost of parking, including the opportunity cost of that person's time.

Required:

Describe Willingness to Pay?


Related Discussions:- Willingness to pay

Explain total fixed and variable costs, Fixed costs are those which are ind...

Fixed costs are those which are independent of output that is they do not change with changes in output. These costs are a fixed amount which must be incurred by a firm in the shor

Nature, explain nature of microeconomic

explain nature of microeconomic

Equilibrium firms, how to find total revenue total cost approch in equilibr...

how to find total revenue total cost approch in equilibrium firms

Econometrics, Due April 8 a) Produce some initial summary statistics of the...

Due April 8 a) Produce some initial summary statistics of the data. b) State the hypotheses that will be tested. Show me advanced results (analyses, not write-up/paper) Due April

Explain the appliance for household use be treated, In an updated GDP that ...

In an updated GDP that contains household production, how would the purchase of a car or appliance for household use be treated? A car or appliance would be treated as a househ

Opportunity cost, there are 1 million hours of labor available for making c...

there are 1 million hours of labor available for making cars in the north, and another 1 million hours of labor available for making cars in the south. in a no-trade world, let''s

Nature of expectations in keynes' theory, Nature of Expectations in Keynes'...

Nature of Expectations in Keynes' Theory : The above discussion on the nature of expectations in Keynes' theory may be summarised as follows: 1) In forming long-term expec

Duopoly, characteristic of duopoly

characteristic of duopoly

User cost of capital, User Cost of Capital = Economic Depreciation + ...

User Cost of Capital = Economic Depreciation + (Interest Rate)(Value of Capital) - Example An Airline buys Boeing 737 for $150 million with the expected life of 30

Write Your Message!

Captcha
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