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Math Help - microeconomics intro - monopoly pricing

  1. #1
    Junior Member
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    sthlm
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    53

    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
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  2. #2
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    nagercoil
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    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.


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  3. #3
    Newbie
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    Nov 2012
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    nagercoil
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    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
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