Question: please help Problem 1 Manuel Moroun, a business man from Grosse Pointe, MI, owns the Ambassador Bridge, a suspension bridge that connects Michigan to Canada.

please help

Problem 1

Manuel Moroun, a business man from Grosse Pointe, MI, owns the Ambassador Bridge, a suspension bridge that connects Michigan to Canada. Before the current pandemic started, the bridge was the busiest auto and commercial crossing between the two countries.

a. Suppose Mr. Moroun hires you as a consultant and asks you to help him set toll prices. How would you suggest he set prices? What types of price discrimination practices should/could he use to raise profit?

b. Now, check the actual tolls charged at the bridge. You find all the information posted on the bridge's web-site: http://www.ambassadorbridge.com/ . What forms of price discrimination does Mr. Moroun's company uses? Do you have suggestions on how to improve pricing?

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