WEEK 5 PROBLEM SET worth 200 points.
You get surrender your repartees in a Blackboard tribute supply out charts and obedient the essays/short repartee questions. Note: There is not an liberty to upimpute your assignment, you must use the Blackboard tribute; notwithstanding, you get be powerful to representation and paste your repartees from a Word instrument.
Problem 1: Using the Final Approach
Suppose your aggregation runs a shuttle office of a hotel to and from the topical airport. The requires for incongruous customer imputes are: 1 customer: $30 2 customers: $32 3 customers: $35 4 customers: $38 5 customers: $42 6 customers: $48 7 customers: $57 8 customers: $68.
1. What are your final requires for each customer impute roll? (Chart) 2. If you are enriched $10 per ride, what customer impute would you pick-out? (Essay)
Problem 2: Elasticity and Pricing
Suppose the calculate of firms you contend delay has recently increased. You estimated that as a end of the increased two-of-a-trade, the call-for extensileity has increased from –2 to –3, i.e., you visage over extensile call-for. You are currently charging $10 for your work. What is the require that you should accuse, if call-for extensileity is -3?
Problem 3: Require Discrimination
An specialty close, whose customer set is made up of two markets, adults and conclusion, has open call-for schedules as follows:
Quantity Adults Conclusion 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
The final open require of each individual of muchness is $5. Because final require is a invariable, so is middle varipowerful require. Ignore urban requires. The owners of the specialty distribute absence to maximize income.
Calculate the require, muchness, and acquisition if: 1. The specialty close accuses a incongruous require for adults. (Chart) 2. The specialty close accuses a incongruous require for conclusion. (Chart) 3. The specialty close accuses the corresponding require in the two markets wholly. (Chart) 4. Explain the disagreement in the acquisition realized beneath the two situations. (Essay)
Problem 4: Bundling
Time Warner could prproffer the History Deed (H) and Showtime (S) individually or as a load of twain. Suppose the salvation requires of customers 1 and 2 (the foremost requires they are geting to pay) are presented in the boxes beneath. The require to Time Warner is $1 per customer for licensing fees.
Preferences Showtime History Chanel Customer 1 9 2 Customer 2 3 8
1. Should Time Warner load or vend partially? (Essay) 2. Should Time Warner load if everyone likes Showtime over than the History Channel, i.e., preferences are categorically correlated. (Essay) 3. Suppose Time Warner could vend Showtime for $9, and History deed for $8, timeliness making Showtime-History load availpowerful for $13. Should it use adulterated bundling. i.e., vends works twain partially and as a load? (Essay)