Question: Monopoly Rinks is the only ice skating facility in Mapleville. The next closest rink is about 100 miles away. It has determined that its demand

Monopoly Rinks is the only ice skating facility in Mapleville. The next closest rink is about 100 miles away. It has determined that its demand curve is
Q = 123 – 0.5P – 0.25 Pc + .01 Y
Where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville.
The local economists estimate that Y is equal to $12,000 and Monopoly has set Pc at $10. If Monopoly's MC of serving another customer is equal to $1, what is the profit maximizing price for seasonal passes?

Step by Step Solution

★★★★★

3.60 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Computation of the following Q 123 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-E-M-E (1827).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

The Chen Co. has determined that its operating circumstances are quite suitable for use of the Baumol-Tobin cash management model. The company consistently earns a five percent annual rate of return...

The ABC Company has determined that its cost of money is 0.12. However, because of a series of necessary nonproductive (not generating cash flows) investments, it has found that on average a...

Sinjin Company has determined that its total manufacturing overhead cost of $1,200,000 is a mixture of unit-level, batch-level, product-line, and facility support costs. The company has assembled the...

1. Both Smith Co and Jones Inc. sell widgets. Smith Co's sales last month equaled 1000 units and it charged a price of $2. This month Jones Inc. reduced the price it sells its brand of widgets from...

These are what my teacher expects for a strategic analysis essay: "Strategic Case Analyses - Case studies provide important windows into the real problems that firms are trying to solve. Note, since...

Thomas Rinks and Joseph Shields created the Psycho Chihuahua cartoon character, which they promoted, marketed, and licensed through their company, Wrench LLC . Psycho Chihuahua is a clever, feisty...

The district court found that appellants produced sufficient evidence to create a genuine issue of material fact regarding whether an implied-in-fact contract existed between the parties. Graham,...

ad the summary of the Wrench LLC v. Taco Bell Corporation case in the "Ethics: Implied-in-Fact Contract Prevents Unjust Result" section of Ch. 9. It is suggested that you also research and read the...

Read the Psycho Chihuahua case on page 194-195 of the textbook. Discuss whether the contract discussed in the textbook should be classified as an implied-in-fact or an implied-in-law contract. This...

Of the citys residents, 4 0 % live in section A , 3 0 % in section B , and 3 0 % in section C . At present, Triple River City has no ice skating rinks. Two companies, X and Y , have plans to build...

Question 21 What should you pay attention to when learning AutoCAD? Tool Icons OA. OB. OC. OD. The Command Line The Title Bar The Status Bar

We are going to open a restaurant next to the university. Provide answer according to the requirements given in the question according to the restaurant's operating model? There are no strict...

4. LO 4 Refer to Figure 3.5 and list the years in which imports are procyclical and countercyclical. Explain why it is important to identify such comovements.

Problems in policing. As a police officer, how should the due process test influence your tactics in the interrogation of suspects?

Data pertaining to job cost sheets for Reyes Tool & Die are given in BE20-3 and BE20-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing...

Marquis Company estimates that annual manufacturing overhead costs will be $800,000. Estimated annual operating activity bases are: direct labor cost $500,000, direct labor hours 50,000, and machine...

During the first quarter, Diaz Company incurs the following direct labor costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to...

Family Policy: Family of 4, Mom, Dad, Son, Daughter $2,000 Single Deductible 40% Single Co-Insurance (up to an Out of Pocket max of $3,200) 34A: These eligible claims were received in the following...

Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%)...

308 Advunced topics - Package plumbing and HVAC: $3,960,000 - Package roofing, traffic control, and waterproofing: $1,625,000 - Storefront, excluding purchase of punch windows: $3.2 million $1.2...