Many retail video stores offer two alternative plans for renting films:
• A two-part tariff: Pay an annual membership fee (e.g., $40) and then pay a small fee for the daily rental of each film (e.g., $2 per film per day).
• A straight rental fee: Pay no membership fee, but pay a higher daily rental fee (e.g.,$4per film per day). What is the logic behind the two-part tariff in this case? Why offer the customer a choice of two plans rather than simply a two-part tariff?
8. Sal"s satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are
QNY = 60 - 0.25PNY
QLA = 100- 0.50PLA
where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by
C = 1000+ 40Q
where Q = QNY + QLA"
a. What are the profit-maximizing prices and quantities for the New York and Los Angeles markets?
b. As a consequence of a new satellite that the Pentagon recently deployed, people in Los Angeles receive Sal"s New York broadcasts and people in New York receive Sal"s Los Angeles broadcasts. As a result, anyone in New York or Los Angeles can receive Sal"s broadcasts by subscribing in either city. Thus Sal can charge only a single price. What price should he charge, and what quantities will he sell in New York and Los Angeles?
c. In which of the above situations, (a) or (b), is Sal better off? In terms of consumer surplus, which situation do people in New York prefer and which do people in Los Angeles prefer? Why?
how does the material in your textbook on the topics of self-presentation and social perception relate to the passage from Matthew 7:3-5, in which Jesus asks: "Why do you...Feb 01 2020
The tank is 1 m tall and 60 cm in diameter. The flow to the tank varies unpredictably and without regular pattern, but has historically been between 0.06 and 0.085 m3 min...Jun 10 2020
draw a simple strategic map for the hotel Paris. specifically,summarize in your own words an example of the hierarchy of links among the hotel's HR practices, necessary w...May 25 2020
With respect to factors that affect reorganization, when a single change triggers off a sequence of related changes, it is called the (a) Halo effect (b) Hawthorne effe...Apr 05 2018
I need help on questions 11,12,13 please!! At what point are a nonqualified annuity's earnings subject to income tax? a. when they are credited to the contract b. when ...Aug 08 2020
Suppose the domestic demand for honey is Qd = 1600-2P (where quantity is measured in tons) and the domestic supply is Qs= -500+P and there are many buyers and sellers suc...Jun 02 2020
Why do you think extending access to the Whitmann Price network beyond the business’s walls dramatically elevated the risk to information security?Jul 14 2020
What is the molar ratio between Fe and H2O?Aug 22 2020
What is your research FIELD, or general topic area? (For example, Chinese family companies.)Feb 03 2020
Assume that bologna is an inferior good. Suppose consumer incomes are declining due to the recession, and, at the same time, firms are seeing an increase in the productio...May 04 2020