5 V C X is Y n 11 Airport Stari-Hrast has the following cost function: c(qq)...
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5 V C X is Y n 11 Airport Stari-Hrast has the following cost function: c(qq) = 10,000,000 + 2,200.q + 1,400.qqis the amount of flights with wide-body aircraft and as the corresponding amount of flights with narrow-body aircraft. The cost is measured in PLN. a) Give the marginal cost for wide-body and narrow-body movements. a i n G b) Compute the marginal cost prices for both types of movements. c) Calculate the profit of the airport, if it sets prices equal to marginal cost. What do you observe? d) Alternatively fully distributed cost (FDC) prices have been proposed. At the moment the demand is the following: q = 60,000 and q= 40,000 movements. Use these values to calculate the weights for FDC-prices. What are the prices for wide-body and narrow-body movements? 5 V C X is Y n 11 Airport Stari-Hrast has the following cost function: c(qq) = 10,000,000 + 2,200.q + 1,400.qqis the amount of flights with wide-body aircraft and as the corresponding amount of flights with narrow-body aircraft. The cost is measured in PLN. a) Give the marginal cost for wide-body and narrow-body movements. a i n G b) Compute the marginal cost prices for both types of movements. c) Calculate the profit of the airport, if it sets prices equal to marginal cost. What do you observe? d) Alternatively fully distributed cost (FDC) prices have been proposed. At the moment the demand is the following: q = 60,000 and q= 40,000 movements. Use these values to calculate the weights for FDC-prices. What are the prices for wide-body and narrow-body movements?
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To address the question provided lets tackle each part one at a time a The marginal cost for widebody and narrowbody movements The cost function given is Cqw qs 10000000 2200qw 1400qs where qw is the ... View the full answer
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
Posted Date:
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