Activity 28/4/21
Question No. 02
A city government is considering renting space in an all‑day parking garage for its 100 employees. The government estimates these employees' demand function for parking spaces is 150 ‑ 50P (P ≥ $1), where P is the per-day price of parking, and the city will pass on the cost.
(a) If the city needs not charge each of its employees the same price for a parking space, what is the maximum amount the city could pay for the 100 spaces, and what would be the average cost per space?
(b) Assume the employees’ union insists that – per their contract – each employee must be charged the same price for parking, and the city’s response is to intend charging the price that maximizes its parking fee revenue. What price per space would the city charge under this circumstance, and how much less total dollar benefit would the employees receive?
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What rates should be charged? Downtown Parking Authority In January a meeting was held in the office of the mayor of Oa...
What rates should be charged?
Downtown Parking Authority In January a meeting was held in the office of the mayor of Oakmont to discuss a unicipal parking facility. The participants included the mayor, the traffic proposca the administrator of Oakmont's Downtown Parking Authority, the city planner, and the finance director. The purpose of the meeting was to consider a report Richard Stockton, executive assistant to the Parking Authority's administrator, concerning estimated costs and revenues for the proposed facility. Mr. Stockton's...
What additional information, if any, should be obtained before making a final decision? Downtown Parking Authority In J...
What additional information, if any, should be obtained
before making a final decision?
Downtown Parking Authority In January a meeting was held in the office of the mayor of Oakmont to discuss a unicipal parking facility. The participants included the mayor, the traffic proposca the administrator of Oakmont's Downtown Parking Authority, the city planner, and the finance director. The purpose of the meeting was to consider a report Richard Stockton, executive assistant to the Parking Authority's administrator, concerning estimated costs...
Activity 28/4/21
Question No. 01 Demand for Magnum Ice Cream is given by an equation as Q = 70 – 10P + 4 Px + 50 I Where, Q = Quantity of Magnum demanded, P = Price of Magnum Ice Cream, Px = Price of Walls Ice Cream, I = Per Capita Incomea. Assume P = Rs 100, Px = Rs 120 and I = Rs 25 (Rs in thousands). Calculate (i) Price Elasticity of Demand(ii) Cross Price Elasticity of Demand(iii) Income...
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the...
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company’s president (Polly), who is also the majority shareholder. The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee must be within 10 years of retirement, and the cost of the seminar is $1,500 per attendee. The company owns a parking garage that is used by...
Problem 5-47 (LO. 2) Sparrow Corporation would like you to review its employee fringe benefits program...
Problem 5-47 (LO. 2) Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "O". a. $ The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The...
Question 4 Gen-Sys is a monopoly supplier of ALZ-112, a drug bought by both private individuals...
Question 4 Gen-Sys is a monopoly supplier of ALZ-112, a drug bought by both private individuals and Government Agencies. The inverse demand curves are pr()-5-q for private individuals, and PG()10 - 2q for Government Agencies. For simplicity assume one private buyer and one Government agency. Gen-Sys produces ALZ-112 at a constant marginal cost of $2 per unit. We will assume there is no trade between buyers of different types 1. If Gen-Sys could perfectly discriminate between the two types of...
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the...
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0". a. The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee must be within 10...
4. Draw the demand, marginal-revenue, and marginal-cost curves for a monopolist. b! Show the profit-maximizing level...
4. Draw the demand, marginal-revenue, and marginal-cost curves for a monopolist. b! Show the profit-maximizing level of i t! output. Show the profit-maximizing price. 5. In your diagram from the previous question, show the level of output that maximizes total surplus. Show the deadweight loss from the monopoly. Explain your answer. is considering building a bridge A company is considering building ss a river. The bridge would cost $2 million to buil build and nothing to maintain. The following table...
Question 1 (1 point) If two goods, X and Y, have a negative cross elasticity of...
Question 1 (1 point) If two goods, X and Y, have a negative cross elasticity of demand, then we know that they are substitutes are both normal goods. are both inferior goods. each have a price elasticity greater than one. are complements. Next Page Page 1 of 20 Previous Page Question 2 (1 point) Consider an excise tax imposed on daily parking charges in the downtown of a smal city. Before the imposition of the tax, equilibrium price and quantity...
10 Question (2 points) In a small city, Uver, a new ride service, has become very...
10 Question (2 points) In a small city, Uver, a new ride service, has become very popular with the younger generation. The inverse demand for Uver rides is given by p= 100.00 – , where q is the number of rides demanded and p is the market price per ride. The inverse supply of rides is given by p = 60.00+ . The local government in this small city is concerned that young people will walk less, which will have...
What rates should be charged?
Downtown Parking Authority In January a meeting was held in the office of the mayor of Oakmont to discuss a unicipal parking facility. The participants included the mayor, the traffic proposca the administrator of Oakmont's Downtown Parking Authority, the city planner, and the finance director. The purpose of the meeting was to consider a report Richard Stockton, executive assistant to the Parking Authority's administrator, concerning estimated costs and revenues for the proposed facility. Mr. Stockton's...
What additional information, if any, should be obtained
before making a final decision?
Downtown Parking Authority In January a meeting was held in the office of the mayor of Oakmont to discuss a unicipal parking facility. The participants included the mayor, the traffic proposca the administrator of Oakmont's Downtown Parking Authority, the city planner, and the finance director. The purpose of the meeting was to consider a report Richard Stockton, executive assistant to the Parking Authority's administrator, concerning estimated costs...
Problem 5-47 (LO. 2) Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "O". a. $ The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The...
Question 4 Gen-Sys is a monopoly supplier of ALZ-112, a drug bought by both private individuals and Government Agencies. The inverse demand curves are pr()-5-q for private individuals, and PG()10 - 2q for Government Agencies. For simplicity assume one private buyer and one Government agency. Gen-Sys produces ALZ-112 at a constant marginal cost of $2 per unit. We will assume there is no trade between buyers of different types 1. If Gen-Sys could perfectly discriminate between the two types of...
4. Draw the demand, marginal-revenue, and marginal-cost curves for a monopolist. b! Show the profit-maximizing level of i t! output. Show the profit-maximizing price. 5. In your diagram from the previous question, show the level of output that maximizes total surplus. Show the deadweight loss from the monopoly. Explain your answer. is considering building a bridge A company is considering building ss a river. The bridge would cost $2 million to buil build and nothing to maintain. The following table...
Question 1 (1 point) If two goods, X and Y, have a negative cross elasticity of demand, then we know that they are substitutes are both normal goods. are both inferior goods. each have a price elasticity greater than one. are complements. Next Page Page 1 of 20 Previous Page Question 2 (1 point) Consider an excise tax imposed on daily parking charges in the downtown of a smal city. Before the imposition of the tax, equilibrium price and quantity...
10 Question (2 points) In a small city, Uver, a new ride service, has become very popular with the younger generation. The inverse demand for Uver rides is given by p= 100.00 – , where q is the number of rides demanded and p is the market price per ride. The inverse supply of rides is given by p = 60.00+ . The local government in this small city is concerned that young people will walk less, which will have...
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