microeconomics intro - monopoly pricing

• Oct 8th 2012, 05:20 AM
jacob93
microeconomics intro - monopoly pricing
Problem:
d) in this Skärmavbild 2012-10-08 kl. 15.16.41.png

Attempt:
I know how to set price if they pay for a ride, but not how to do it if you give a fixed price. Maybe it's something like $\pi = P_{dayticket} \cdot Q_{daytickets} - 50 - Q_{rides}$

Calculations:
2012-10-08 15.16.29.jpg and 2012-10-08 15.16.37.jpg
• Nov 4th 2012, 08:13 PM
akilina123
Re: microeconomics intro - monopoly pricing
1. false. The cross price elasticity is positive. Pork and beef are substitutes.The increase in income will go to pork.
2. true. The elasticity is unit or =1 where the revenue is maximized.
3.false. Total output will still increase with diminishing rate.

costmes, halloween costumes
• Nov 4th 2012, 08:18 PM
akilina123
Re: microeconomics intro - monopoly pricing
1. false. The cross price elasticity is positive. Pork and beef are substitutes.The increase in income will go to pork.
2. true. The elasticity is unit or =1 where the revenue is maximized.
3.false. Total output will still increase with diminishing rate.

costmes, halloween costumes