Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Economics Expert

Price Discrimination: Assume that the United Airlines knows that it faces given demand equations and corresponding marginal revenue equations for its one-way SFO to the Las Vegas route:

Friday Departure:               P = 320 - 2Q                  (Demand)
                                           MR = 320 - 4Q               (Marginal Revenue)
Tuesday Departure:           P = 200 - Q                     (Demand)
                                           MR = 200 - 2Q                (Marginal Revenue)

The marginal Cost is constant $40 per passenger.

Q1. Find out the profit-maximizing quantity of passengers for Friday departures and Tuesday departures. Determine the profit-maximizing price for each.

Q2. Compute the total revenue received on Friday flights and Tuesday flights.

Q3. Draw two separate graphs for Friday demand and Tuesday demand. In your graph comprise a marginal revenue curve and marginal cost curve. Show the profit maximizing price and output for each and every graph.

Q4. What if United Airlines charged $150 per passenger daily of the week, would this maximize profits? describe why or why not?

Managerial Economics, Economics

  • Category:- Managerial Economics
  • Reference No.:- M910032

Have any Question? 


Related Questions in Managerial Economics

Questionthe customary view of poverty in association with

Question: The customary view of poverty in association with healthcare focuses on ability to pay. However, financial difficulty in a region has compounded effects on utilization and demand that extend from provider suppl ...

Managerial economics assignmentthe homework covers ch 1113

Managerial Economics Assignment The homework covers Ch 11~13. It has to be your individual work. Copying answer from others will violate ACADEMIC HONESTY policy to cause a failing grade. For each question, please show th ...

Questionhealth insurance in america is big business many

Question: Health insurance in America is big business. Many insurance companies are experiencing record gains, yet benefiting from not-for-profit status. In Illinois, some of the largest hospital operators have revenues ...

Homeworkproject integration and scopeassume you are a

Homework Project Integration and Scope Assume you are a project leader assigned to manage the cost reduction project for a component used for an agricultural tractor. You are to work with engineering, procurement and sup ...

Managerial economics assignmentproblem 1 - you enjoy

Managerial Economics Assignment Problem 1 - You enjoy satisfaction from consuming sandwiches. Suppose there are two types of sandwiches, X and Y. 1) Graph your budget line if you are offered a "buy two, get one free (lim ...

Managerial economics discussionfrom the e-activity examine

Managerial Economics Discussion From the e-Activity, examine the key factors that influence the supply and demand of the selected good in general and Katrina's Candies specifically. Propose two methods in which organizat ...

Questionview ivan oranskys ted talk are we over-medicalized

Question: View Ivan Oransky''s TED Talk, Are We Over-Medicalized? Think about what the presenter''s view of the American healthcare system mean in terms of demand and utilization of healthcare services. Is this a sustain ...

Assignmentwrite a 1-2 page essay where in you choose a

Assignment Write a 1-2 page essay where in you choose a nation state in which you would like to open and operate a business.In your essay describe the problems you might encounter in entering the foreign market and in op ...

Managerial economics assignmentplease answer the following

Managerial Economics Assignment Please answer the following questions located in the template document. Submit the file as a Microsoft® Word® document to the Dropbox when completed. 1. Analyze whether each of the followi ...

Homeworkmanaging stakeholders please respond to the

Homework "Managing Stakeholders" Please respond to the following: • From the first and second e-Activities, assume that you are the manager of the project that will set up a new headquarters office for the Federal Bureau ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate