Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Do it as soon as possible please, show working also Based on a study of the public that identified the negative externalities of attendees to
Do it as soon as possible please, show working also
Based on a study of the public that identified the negative externalities of attendees to the barbecue area, the park manager suggested imposing an additional fee for these visitors. Specifically, it was proposed to restrict the area of quinchos, and charge a fee extra t (in addition to the cost of the park entrance) to be able to occupy it. How is Unsurprisingly, this price hike negatively affects the number of people who attend to the barbecue area every day. In particular, this effect can be related to the value of the parameter q (or more specifically q(t) ) associated to the distribution of Y as follows way: the relationship between t and q is linear affine, and if no extra fee is charged (t=0), then for each day, the probability that each possible visitor to the barbecue area visit the park is equal to 0.6. On the other hand, if an extra fee equal to the price of the entrance (i.e., t=$5000 ), the probability that this type of customer will attend the park is 0 (and if 0t0 ). e) Calculate the value of the tariff t * that maximizes the expected daily income. remember that for it to make sense, it must be true that q (0,1). By how much do the expected daily revenue with respect to the case where no extra fee is charged (i.e., t=0)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started