Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

A little help?

Options
  • 19-11-2010 4:55am
    #1
    xp90
    Banned (with Prison Access) Posts: 583 ✭✭✭


    These might take your mind off the bailout!:)


    6. You are the manager of a petrol station in, and your goal is to maximize profits. Based on your experience, the elasticity of demand of students for a car wash is -2, while that of lecturers is -1.5. Your marginal cost is €6. What is the profit-maximizing price to charge a student for a car wash and what is the profit-maximizing price to charge a lecturer, based on staff car parking permits, for a car wash?

    1. €18 for a student, €12 for a lecturer
    2. €12 for a student, €9 for a lecturer
    3. €12 for a student, €12 for a lecturer
    4. €12 for a student, €18 for a lecturer



    7. You are a truck farmer and bring produce to a farmer’s market every Wednesday. You have found that on a typical day five other farmers bring their produce to market. Years of experience have taught you that you make the most money by pricing your produce at 1.15 times your marginal cost. What is your elasticity of demand in this Cournot oligopoly?


    a) -1.15
    b) -1.277
    c) -7.662
    d) None of the above


Comments

  • Options
    #2
    xp90
    Banned (with Prison Access) Posts: 583 ✭✭✭xp90


    bump?


  • Options
    #3
    MayoShkyboy
    Registered Users Posts: 2 ✭MayoShkyboy


    you're in 2nd commerce NUIG
    trollface.jpg


  • Options
    #4
    FISMA
    Closed Accounts Posts: 2,616 ✭✭✭FISMA


    What kind of car-wash are we talking about? One like this?
    2664267695_3af587b6a8.jpg

    Up the Rebels!:)


  • Options
    #5
    Économiste Monétaire
    Closed Accounts Posts: 2,208 ✭✭✭Économiste Monétaire


    Quick reminder: this isn't After Hours. If you've nothing useful to contribute, i.e., an answer the OP's question, do not add pointless noise to the forum. I'll let it pass because the woman in the picture isn't half-bad :pac:.

    The first answer is 4) €12 for a student, €18 for a lecturer. For the second, it's either C or D, I'm not 100% sure; the answer I get is: |e| = 7.667, where e is the price elasticity of demand.


Advertisement