Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is Ps = 300
Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is Ps = 300 - 2Q5 In winter the inverse demand is Pw = 300 - QW For simplicity, assume Paradise has no limit on the number of yachts available for rental on a monthly basis and that the marginal cost of production is zero. The profit-maximizing peak-load price for the summer is Ps = $ 150.00 and the optimal peak-load price for the winter is Py = $ 150.00. (Enter your response rounded to two decimal places.) Consumer surplus (CS) is CS = $ 16,875 With peak-load pricing, the firm's profit (ft) is 1 = $ 33,750 When charging a single price for both seasons, the firm's profit-maximizing price is p = $ 150 With the single price, profit (ft) is r = $ 33,750 With the single price, consumer surplus (CS) is CS = $ 16,875 Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is Ps = 300 - 2Q5 In winter the inverse demand is Pw = 300 - QW For simplicity, assume Paradise has no limit on the number of yachts available for rental on a monthly basis and that the marginal cost of production is zero. The profit-maximizing peak-load price for the summer is Ps = $ 150.00 and the optimal peak-load price for the winter is Py = $ 150.00. (Enter your response rounded to two decimal places.) Consumer surplus (CS) is CS = $ 16,875 With peak-load pricing, the firm's profit (ft) is 1 = $ 33,750 When charging a single price for both seasons, the firm's profit-maximizing price is p = $ 150 With the single price, profit (ft) is r = $ 33,750 With the single price, consumer surplus (CS) is CS = $ 16,875
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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