Question Description
1.Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both separately and as a bundle?
Your answer must include the profit with mixed bundling.
2. Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are:
1 customer: $30
2 customers: $32
3 customers: $35
4 customers: $38
5 customers: $42
6 customers: $48
7 customers: $57
8 customers: $68.
What are your marginal costs for each customer load level?
|
Q |
TC |
MC |
Total Rev |
Profit |
|
1 |
30 |
10 |
-20 |
|
|
2 |
32 |
Blank 1 |
20 |
-12 |
|
3 |
35 |
Blank 2 |
30 |
-5 |
|
4 |
38 |
Blank 3 |
40 |
2 |
|
5 |
42 |
Blank 4 |
50 |
8 |
|
6 |
48 |
Blank 5 |
60 |
12 |
|
7 |
57 |
Blank 6 |
70 |
13 |
|
8 |
68 |
Blank 7 |
80 |
12 |
30 points
1 customer: $30
2 customers: $32
3 customers: $35
4 customers: $38
5 customers: $42
6 customers: $48
7 customers: $57
8 customers: $68.
If you are compensated $10 per ride, what customer load would you choose?
|
Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of $10, you will serve customers up to the point where MR ≥ MC or you will serve 7 customers. |
||
|
Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of $10, you will serve customers up to the point where MC < MR or you will serve 10 customers. |
||
|
Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of $10, you will serve customers up to the point where MC< MR or you will serve 9 customers. |
||
|
Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of $10, you will serve customers up to the point where MC = MR or you will serve 7 customers. |
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.