Suppose the average student's demand for Holy Cross football tickets is as follows:$20 $14 s10 $7 $51 2PriceQuantity3 4 5a. If Holy Cross is a profit maximizer and it can only sell single game tickets, what price will HolyCross charge, how many tickets will the average student buy, and how much profit will thecollege make per student (assuming MC = 0)?b. If Holy Cross is a profit maximizer but instead sells season-tickets for all 5 home games, whatprice will the college charge and how much profit will the college make per student?c. Give at least 2 other reasons besides higher ticket revenue why Holy Cross would prefer to sellseason tickets rather than individual game tickets.2.

Price Quantity TR MR $20 1 20 20 $14 2 28 8 $10 3 30 2 $7 4 28 -2 $5 5 25 -3 A) The…

Answered: Price $20 $14 s10 S7 $5 Quantity 1 2 3…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter13: Between Competition And Monopoly

Section: Chapter Questions

Problem 5DQ

See similar textbooks

Similar questions

Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…
2. A market analysis employed by the "Sad Student Company" reveals that the number of lots of the game named "Handsome Killer: Revenge of the Teacher" ordered by the wholesalers when the game is offered at a price of dollars per lot is given by the formula: p=1500 – 2.5q a) Find the company's total, marginal and average revenues b) Find the price and quantity maximizing the total revenue by first expressing the revenue as a function of price rather than of quantity
2. The Ice Cream Lovers Society decided to open up an ice cream stand during the summermonths. They calculated that it would cost them $0.80 to make a scoop of ice cream and$350 a month to operate the stand. They hired a research team who determined that theprice-demand function given in dollars isp x x ( ) = −8 0.02wherexis the number ofscoops sold.a. Find the revenue functionR x( )b. Find the value ofxthat produces the maximum revenue algebraically.c. Find the maximum revenue algebraically.d. Find the price per scoop of ice cream that produces the maximum revenuealgebraically.e. Find the cost functionC x( )that describes the monthly costs of operating the icecream stand.f. Find the break-even points to the nearest scoop algebraically usingR x( )andC x( ) .g. Find the profit functionP x( ).
3. A firm is considering bidding for the franchise to sell cola and hot dogs at a baseball stadium. It estimates the demand functions for cola and hot dogs respectively as De=20-4pc-PH DH = 15-Pc-5PH where De is demand for cola in thousands (of cans), DH is demand for hot dogs in thousands, pc is the price of a can of cola in dollars, and PH is the price of a hot dog. The unit cost of supplying a hot dog is constant at $0.1, and the unit cost of a can of cola is likewise constant at $0.5. (a) Find the upper limit to the amount the firm would bid for the franchise.
14. The only DVD rental club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P = 20 – 2Q, where P is the rental price ($/day) and Q is the quantity demanded (movies per year), what is the annual maximum fee you would be willing to pay to join the club?
5. In a small college town there is only one movie theater. In a given month, if the theater is open, the owners have to pay a fixed amount of $6,000 for the films, ushers, etc., regardless of how many people come to the movies. For simplicity, assume that if the theater is closed, its costs are zero. The demand function for movie tickets in the town is characterized by ??= 45 −QT/60 a. Draw the market demand curve, the marginal revenue curve, and the marginal cost curve. Make sure to label the axes, curves, and intercepts. b. Find the profit-maximizing price and quantity of movie tickets, and indicate them on the graph above. How much would the theater make in profits?c. Suppose the local government implements a property tax, so that each month the theater now must pay a lump sum tax of $700. What will be the price and quantity of movie tickets under this tax?
Suppose High-Tech Software sells two products-a word-processing package and a spreadsheet package. Suppose that the business community values the word-processing package at $100 per unit and the spreadsheet package at $250 per unit while the university community values the word-processing package at $125 and the spreadsheet at $200. (Assume that the marginal cost of each unit is zero.) a. What are the profit-maximizing price that High-Tech should charge if they sell each product separately and what is the total price of the two goods? b. If High-Tech is able to engage in tying, what is the profit-maximizing price for the two products as a bundle? c. Should this be legal?
Suppose that Nathan Juarez is the only seller of kumquats in a small town. The following graph shows the demand and marginal revenue (MR) curves facing Nathan. You can use the red rectangle labelled Total Revenue (cross symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, scroll over the shaded area with your mouse. You will not be scored on where you place the rectangle. Show Transcribed Text 80 72 64 56 48 40 32 24 PRICE (Dollars per basket) 16 10 8 9 0 8 7 TOTAL REVENUE (Thousands of dollars per year] 6 On the following graph, use the green points (triangle symbol) to plot annual total revenue at prices of $7, $6, $5, $4, $3, $2, and $1 per basket of kumquats. Be sure to use all of the points provided. Line segments will automatically connect the points. 5 Then, consider the quantity of kumquats at which Nathan Juarez's marginal revenue exactly equals zero. Place a grey point (star symbol) on the total revenue…
Suppose the typical LA Rams fan has the following demand curve for Bills football games: P = 200 – 5G where G is the number of games the fans attend. Suppose the Bills have the chance to offer a various multi-game season ticket packages and tickets to individual games. If the Rams want to sell a particular fan single tickets to all eight home games, what price must they charge? $___ What should be the total price for a LA Rams 8-game season ticket package? $___ What should be the average ticket price for an LA Rams 4-game season ticket package? $___ Suppose the Rams have the opportunity to sell tickets to individual games. What price should they charge? $___
1. A manufacturer estimates that D(p)=3000e0.05p units of a particular good will be sold at market price of p cedis per unit. Determine the market price that will result in marginal revenue of zero. 2. A manufacturer estimates that q = 800/30 – p units of a commodity are demanded when cedis per unit are charged. a. Express the price elasticity of demand as function of p . b. Calculate the price elasticity of demand when p=10. Interpret the result. c. Find the price at which the price elasticity of demand is unit-elastic. 3. An auto maker estimates that when q units of its saloon cars are sold in a day, its profit in millions of cedis is modelled as P(q) =100+25In 20 Find the 2 number of cars that should be produced and sold to maximise profit.
Suppose that the demand curve for movies for college students is Q, = 80 - 1.00p 100 and for other town residents is 90- 80 Q2 = 20 - 0.25p. 70- The town's total demand curve is 60 50- E 40- 30- 20 60 Q, Movies 20 40 80 100 120 System Preferences www 1 tv 30 MacBook Air DII DD 80 F10 F9 F8 esc F7 F5 F6 F1 F2 F3 @ 23 $ 2 3 4 5 7 9 1 Q W R Y U P. Price per movie * CO
Suppose that the demand curve for movies for college students is 100- Q, = 80 – 1.00p 90- and for other town residents is 80- Q2 = 20 - 0.25p 70- The town's total demand curve is 9 60- Q = * 50- E 40- 30- 20 10- 20 40 60 100 120 Q, Movies tv MacBook Air DD 80 F10 F11 F8 F9 F6 F7 esc F4 F5 F1 F2 F3 @ # $ % & 3 4 5 7 8. 云 * 00 p, Price per movie 吕: **

SEE MORE QUESTIONS

Recommended textbooks for you

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

Economics: Private and Public Choice (MindTap Cou…

Economics

ISBN:

9781305506725

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Microeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506893

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

Economics: Private and Public Choice (MindTap Cou…

Economics

ISBN:

9781305506725

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Microeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506893

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS