AdDU U . abe X2 X A . . A . No Spacing Heading : 7. 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=1,000 - 2P, where Q is the number of customers with monthly parking passes and P is the monthly parking fee per car. (a) Derive your marginal revenue schedule. [4 marks] (b) What price generates the greatest revenues? [3 marks] Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlord are $25,000 per month. In addition, your insurance company charges you $20 per car per month for liability coverage and the City of London charges you $30 per car per month as part of its policy to discourage the use of private cars in the city centre. (c) What is your profit maximising price? [3 marks]