Ask Question, Ask an Expert


Ask Microeconomics Expert

Q1) The Chicago Opera is setting prices for subscription to next seasons performances and they have hired a consultant. consultant has determined that audience is composed of two kinds of customers. The first are "patrons", who are affluent and committed opera lovers. By studying past demand consultant determines that patron's demand is describeed by equation Pp = 450 - .15Qp,
where Pp is price a patron should pay for subscription and Qp are number of patron subscriptions.
Other group of potential subscribers is "students", who are normally less affluent and less committed to opera. Their demand is given by Ps = 300 - .15Qs,
where Ps is price a student should pay for a subscription and Qs are the number of student subscriptions.
a) Imagine opera has capacity of 3000 seats and that all costs are fixed. If they can discriminate between two groups, determine optimal price to charge to each group and how many tickets will each group buy?

b) If opera can only seat 2000 people and can discriminate compute optimal price to charge to each group and how many tickets will each group buy?

c) If opera has a capacity of 3000 but cannot discriminate (i.e., they should charge same price to everyone). Compute the optimal price?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M922887

Have any Question? 

Related Questions in Microeconomics

Assignmentthere are many terms used to describe the

Assignment There are many terms used to describe the importance of people to an organization's success. Some of those terms are human resources, human capital, intellectual assets, and talent management. This implies tha ...

Q1 garys labor supply is given by h -10 071428w where h

Q1. Gary's labor supply is given by H = -10 + 0.71428.w, where H is the hours worked per week and w is the hourly wage rate. Mary and Terry's labor supply functions are represented by H= -2 + 0.25.w and H= -38+1.7272.w, ...

Topic 1 costs and economies of scaleyou have learned a good

Topic 1: Costs and Economies of Scale You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently. Moreover, many suppli ...

Assignmentmicroeconomicsdirections unless otherwise stated

ASSIGNMENT Microeconomics Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four dou ...

Case analysis instructionsnoteyou will need to get approval


Long-term investment and cost-benefit analysis please

Long-Term Investment and Cost-Benefit Analysis" Please respond to the following: From the scenario for Katrina's Candies, suggest one method in which Herb could use a cost-benefit analysis to argue for or against an expa ...

Economic principles written assignment- there are two parts

Economic Principles Written Assignment- There are two parts, A and B, to this assignment. You need to answer both. Part A: Disruptive Technologies A major focus of economics is the analysis of markets and the impact of r ...

Recall from lecture the two facts we discussed one no

Recall from lecture the two facts" we discussed: One, no product exists at a vacuum; and two relationships among products change over time. Recall the background factors of demand: consumer preferences/ Wants; consumer i ...

Finding the equilibrium pointat the beginning of 2005

FINDING THE EQUILIBRIUM POINT At the beginning of 2005, Toyota sold 175,000 vehicles. Based on the company's analysis of the small car market, the company believed that $16,000 was the equilibrium price based on the foll ...

Discussionapplications and best practices please respond to

Discussion "Applications and Best Practices" Please respond to the following: • Propose two applications of the knowledge that you have learned in this course to your current or a future position. Provide a rationale for ...

  • 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