Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Agnieszka runs a pub called the 'Kontrast" which is frequented by many celebrities. Given the popularity and location of the pub, Agnieszka has a monopoly position in the market. Each customer's demand curve for drinks per night is given by the following: P = 60 - 2Q. The marginal cost of each drink sold is $4. Agnieszka is considering imposing a cover charge on the pub. Essentially this is a fee that allows you into the pub after which you can purchase as many drinks as you like. If Agnieszka is a profit maximizing monopolist and knows the demand curve of each customer, what is the optimal cover charge that Agnieszka should charge so as to maximize profits?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92801220
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Economics

A sample of 100 randomly selected students found that the

A sample of 100 randomly selected students found that the proportion of students planning to travel home for Thanksgiving is 0.68. What is the Standard Deviation of the sampling distribution?

1 out-of-state tuition and fees at the top graduate schools

1. Out-of-state tuition and fees at the top graduate schools of business can be very expensive, but the starting salary and bonus paid to graduates from many of these schools can be substantial. The following data show t ...

How will the dollar devaluation affect businesses and

How will the dollar devaluation affect businesses and consumers in the twin cities of El Paso, the United States and Juarez, Mexico?

Question 1find the area between -88 standard deviations

Question 1 Find the area between .-88 standard deviations below the mean and 2.35 standard deviations above the mean. '88=.3106 and 2.3=.4906 Both figures are added .3106+.4906= .8012 which is 80.12% Question 2 The area ...

Suppose a retailer claims that the average wait time for a

Suppose a retailer claims that the average wait time for a customer on its support line is 179 seconds. A random sample of 57 customers had an average wait time of 169 seconds. Assume the population standard deviation fo ...

How does consumers influence the market price of goods it

How does consumers influence the market price of goods it sells, and what does the term, "market power" means?

A real world example of a unfavorable result in an

A real world example of a unfavorable result in an experiment and what could have been done to avoid the outcome of the experiment?

What is the result of a price ceiling and why do some

What is the result of a price ceiling? And why do some consumers tend to favor price ceilings and others tend to oppose it?

Multicar accident often result in fatalities across the

Multicar accident often result in fatalities across the nation, records are kept of the total number of accident involving 10 or more vehicles. Over the past 25 years, the average number of accidents involving 10 or more ...

How could advertising be a barrier to entry could

How could advertising be a barrier to entry? Could advertising reduce barriers to entry for a new product? Presumably drug companies are trying to differentiate their products from the competition. Will consumers be bett ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As