ECO550 Strayer University Price Quantity and Profit Calculations Answers

Anonymous

Question Description

QUESTION 4

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:


The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Price ($)

Quantity

Adults

Children

5

15

20

6

14

18

7

13

16

8

12

14

9

11

12

10

10

10

11

9

8

12

8

6

13

7

4

14

6

2



Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

Price

Quantity

Total

Revenue

Marginal

Revenue

Marginal

Cost

Total

Cost

MR-MC

Profit

6

84

5

30

34

13

91

7

5

35

2

56

12

8

96

5

5

40

0

9

99

3

5

45

-2

54

10

100

1

5

50

-4

50

9

11

99

-1

5

55

-6

12

96

-3

5

60

-8

36

7

91

-5

5

65

-10

26

6

14

84

-7

5

70

-12

5

15

75

-9

5

75

-14

0



30 points

  • Question 4 of 9
  • Moving to another question will save this response.

QUESTION 5

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Price ($)

Quantity

Adults

Children

5

15

20

6

14

18

7

13

16

8

12

14

9

11

12

10

10

10

11

9

8

12

8

6

13

7

4

14

6

2



Calculate the price, quantity, and profit if: The amusement park charges a different price in the child's market

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

Price

Quantity

Total

Revenue

Marginal

Revenue

Marginal

Cost

Total

Cost

MR-MC

Profit

14

2

28

5

10

13

52

12

5

20

7

32

6

72

10

5

30

5

42

11

8

88

8

5

40

3

48

10

10

100

6

5

50

1

9

108

4

5

60

-1

48

14

112

2

5

70

-3

42

7

16

112

0

5

80

-5

6

108

-2

5

90

-7

18

20

100

-4

5

100

-9

0


QUESTION 6

Question 6

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:


The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Price ($)

Quantity

Adults

Children

5

15

20

6

14

18

7

13

16

8

12

14

9

11

12

10

10

10

11

9

8

12

8

6

13

7

4

14

6

2



Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

Price

Quantity

Total

Revenue

Marginal

Revenue

Marginal

Cost

Total

Cost

MR-MC

Profit

14

8

112

5

40

72

11

143

10.33

5

55

5.33

88

12

168

8.33

5

70

3.33

98

11

17

187

6.33

5

85

1.33

20

200

4.33

5

100

-0.67

100

9

207

2.33

5

115

-2.67

92

8

26

208

0.33

5

130

-4.67

29

203

-1.67

5

145

-6.67

58

6

192

-3.67

5

160

-8.67

5

35

175

-7.67

5

190

-12.67

-38



QUESTION 7

Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.)

Make sure you include the profit with and without price discrimination in your answer.

QUESTION 8

Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.

Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below.

The cost to Time Warner is $1 per customer for licensing fees.

Preferences

Showtime

History Chanel

Customer 1

9

2

Customer 2

3

8



Should Time Warner bundle or sell separately? Your answer needs to include the unbundled and bundled profits.

QUESTION 9

Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both separately and as a bundle?

Your answer must include the profit with mixed bundling.

Unformatted Attachment Preview

QUESTION 4 An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits. Quantity Price ($) 5 6 7 8 9 10 11 12 13 14 Adults 15 14 13 12 11 10 9 8 7 6 Children 20 18 16 14 12 10 8 6 4 2 Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market Please express your answers for Price and Profit in whole dollars (i.e.10.00) Please use whole numbers for Quanitity (i.e. 10, 27, 4) Total Price Revenu e Quantity 6 Total Cos Revenue Cost t MR MC Profit 84 5 30 7 5 35 2 8 96 5 5 40 0 9 99 3 5 45 -2 54 100 1 5 50 -4 50 99 -1 5 55 -6 10 9 Margina l 91 13 12 Margina l 11 34 56 12 7 96 -3 5 60 -8 36 91 -5 5 65 -10 26 6 14 84 -7 5 70 -12 5 15 75 -9 5 75 -14 0 30 points • • Question 4 of 9 Moving to another question will save this response. QUESTION 5 An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits. Quantity Price ($) 5 6 7 8 9 10 11 12 13 14 Adults 15 14 13 12 11 10 9 8 7 6 Children 20 18 16 14 12 10 8 6 4 2 Calculate the price, quantity, and profit if: The amusement park charges a different price in the child's market Please express your answers for Price and Profit in whole dollars (i.e.10.00) Please use whole numbers for Quanitity (i.e. 10, 27, 4) Price Quantity 14 2 13 Total Marginal Marginal Total MRRevenue Revenue Cost Cost MC 28 5 10 Profit 52 12 5 20 7 32 6 72 10 30 5 42 11 8 88 8 5 5 40 3 48 10 10 100 6 5 50 1 108 4 5 60 -1 48 14 112 2 5 70 -3 42 16 112 0 5 80 -5 108 -2 5 90 -7 18 100 -4 5 100 -9 0 9 7 6 20 QUESTION 6 Question 6 An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits. Quantity Price ($) 5 6 7 8 9 10 Adults 15 14 13 12 11 10 Children 20 18 16 14 12 10 11 12 13 14 9 8 7 6 8 6 4 2 Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined Please express your answers for Price and Profit in whole dollars (i.e.10.00) Please use whole numbers for Quanitity (i.e. 10, 27, 4) Price 14 Quantity 8 11 Total Cost 5 40 MRMC Profit 72 5 55 5.33 88 168 8.33 5 70 3.33 98 17 187 6.33 5 85 1.33 20 200 4.33 5 100 -0.67 100 207 2.33 5 115 -2.67 92 26 208 0.33 5 130 -4.67 29 203 -1.67 5 145 -6.67 192 -3.67 5 160 -8.67 175 -7.67 5 190 12.67 6 5 112 Marginal Cost 10.33 9 8 Marginal Revenue 143 12 11 Total Revenue 35 58 -38 QUESTION 7 Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.) Make sure you include the profit with and without price discrimination in your answer. QUESTION 8 Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both. Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below. The cost to Time Warner is $1 per customer for licensing fees. Preferences Customer 1 Customer 2 Showtime 9 3 History Chanel 2 8 Should Time Warner bundle or sell separately? Your answer needs to include the unbundled and bundled profits. QUESTION 9 Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both separately and as a bundle? Your answer must include the profit with mixed bundling. ...
Purchase answer to see full attachment

Tutor Answer

TutorAR
School: UT Austin

Hi, Find attached the paper for your review.Let me know if you need anything edited or changed.Looking forward to working with you again in future.Thank you
Attached.

QUESTION 4
An amusement park, whose customer set is made up of two markets, adults and children, has
developed demand schedules as follows:

The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant,
so is average variable cost. Ignore fixed costs. The owners of the amusement part want to
maximize profits.

Quantity
Price ($)
5
6
7
8
9
10
11
12
13
14

Adults
15
14
13
12
11
10
9
8
7
6

Children
20
18
16
14
12
10
8
6
4
2

Calculate the price, quantity, and profit if: The amusement park charges a different price
in the adult market
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quanitity (i.e. 10, 27, 4)

Total
Price

Quantity
6

14

13
12

7

8

Marginal Marginal Total

Revenue Revenue

Cost

MRCost MC Profit

84
91

7

5
5

96

5

5

30
35

2

40

0

34
56
56

9

11

10

3

5

45

-2

54

100

1

5

50

-4

50

11

99

-1

5

55

-6

12

96

-3

5

60

-8

36

91

-5

5

65

-10

26

10

9
8

7

99

13

6

14

84

-7

5

70

-12

5

15

75

-9

5

75

-14

44

14

0

Adult market price = $13.00
Adult market quantity = 7 units
Adult market profit = $56.00

QUESTION 5
An amusement park, whose customer set is made up of two markets, adults and children, has developed
demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is
average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Quantity
Price ($)

Adults

Children

5

15

20

6

14

18

7

13

16

8

12

14

9

11

12

10

10

10

11

9

8

12

8

6

13

7

4

14

6

2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the child's
market
Please express your answers for Price and Profit in whole dollar...

flag Report DMCA
Review

Anonymous
I was on a very tight deadline but thanks to Studypool I was able to deliver my assignment on time.

Anonymous
The tutor was pretty knowledgeable, efficient and polite. Great service!

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors