You own a private parking lot near Stony Brook University with a capacity of 600 cars....
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You own a private parking lot near Stony Brook University with a capacity of 600 cars. The demand for parking at this lot is estimated to be q = 1000 – 2p where q is the number of costumers with monthly parking passes and p is the monthly parking fee per car. (a) Derive your Marginal Revenue schedule. (b) What price generates the greatest revenues? (c) Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlord and the cost of hiring an attendant, are $25,000 per month. In addition, your insurance company charges you $20 per car per month for liability coverage, and the city of Brookhaven charges you $30 per car per month as part of its policy to discourage the use of private automobiles. What is your profit-maximizing price? You own a private parking lot near Stony Brook University with a capacity of 600 cars. The demand for parking at this lot is estimated to be q = 1000 – 2p where q is the number of costumers with monthly parking passes and p is the monthly parking fee per car. (a) Derive your Marginal Revenue schedule. (b) What price generates the greatest revenues? (c) Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlord and the cost of hiring an attendant, are $25,000 per month. In addition, your insurance company charges you $20 per car per month for liability coverage, and the city of Brookhaven charges you $30 per car per month as part of its policy to discourage the use of private automobiles. What is your profit-maximizing price?
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Answer rating: 100% (QA)
a The demand curve for parking at the lot is given as q10002p where q is the number of customers with parking passes and p denotes the monthly fee for ... View the full answer
Related Book For
Accounting Information Systems
ISBN: 9780132871938
11th edition
Authors: George H. Bodnar, William S. Hopwood
Posted Date:
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