Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza in Egypt, is a huge tourist at'tra dion. The

image text in transcribed
As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza in Egypt, is a huge tourist at'tra dion. The Egyptian Government decides to grant one person, called Rajmund, exclusive access to the pyramids so he can conduct tours. Each tour costs him $103 to conduct (ie: his marginal cost is constant at $108l'tour). Below is a table of potential prices he could charge and the corresponding quanties. Price Quantity {Show} [tou rs} 200 2 180 4 162 6 144 9 130 1 2 122 'l 4 Although Rajmund can exert monopoly power, he decides he will set a price of $1 30 per tour [without consulting any economic concepts). Answer the following questions: a. What is Rajmund's marginal revenue when the plice is $130 per tour? Answer to the nearest whole number (with no decimal places}. 3 hour b. At $1 30 per tour, should Rajmund decrease or increase the number of tours to maximise prot? . Type D for Decrease or I for Increase. c. What price per tour should Rajmund be charging in order to maximise prot? Answer to the nearest number [with no decimal places}. 3 Hour

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

What Environmentalists Need To Know About Economics

Authors: Jason Scorse

1st Edition

0230107311, 9780230107311

More Books

Students also viewed these Economics questions

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago