Posted: February 15th, 2022

ECO 550 Mid Term Exam Assignments

Question 5

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

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The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost.  Ignore fixed costs. The owners of the amusement part want to maximize profits.

Price ($)	Quantity
	Adults	Children
5	15	20
6	14	18
7	13	16
8	12	14
9	11	12
10	10	10
11	9	8
12	8	6
13	7	4
14	6	2

 Calculate the price, quantity, and profit if: The amusement park charges a different price in the child's market

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

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Price	Quantity	Total Revenue	Marginal Revenue	Marginal How Much Does It Cost to Get a Paper Written? Our pricing starts at $10 per page for undergrad work, $16 for bachelor-level, and $21 for advanced stuff. Urgency and extras like top writers or plagiarism reports tweak the cost—deadlines range from 14 days to 3 hours. Order early for the best rates, and enjoy discounts on big orders: 5% off over $500, 10% over $1,000! Cost	Total Cost	MR-MC	Profit
14	2	28		5	10
13		52	12	5	20	7	32
	6	72	10	5	30	5	42
11	8	88	8	5	40	3	48
10	10	100	6	5	50	1
9		108	4	5	60	-1	48
	14	112	2	5	70	-3	42
7	16	112	0	5	80	-5
6		108	-2	5	90	-7	18
	20	100	-4	5	100	-9	0

Question 4

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost.  Ignore fixed costs. The owners of the amusement part want to maximize profits.

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Price ($)	Quantity
	Adults	Children
5	15	20
6	14	18
7	13	16
8	12	14
9	11	12
10	10	10
11	9	8
12	8	6
13	7	4
14	6	2

 Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quantity (i.e. 10, 27, 4)

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Price	Quantity	Total Revenue	Marginal Revenue	Marginal Why Choose You for Research Papers? We’re the best because our writers are degree-holding experts—Bachelor’s to Ph.D.—who nail any topic. We obsess over quality, using tools to ensure perfection, and offer free revisions to guarantee you’re thrilled with the result, even on tight deadlines. Cost	Total   Cost	MR-MC	Profit
	6	84		5	30		34
13		91	7	5	35	2	56
12	8	96	5	5	40	0
	9	99	3	5	45	-2	54
10		100	1	5	50	-4	50
9	11	99	-1	5	55	-6
	12	96	-3	5	60	-8	36
7		91	-5	5	65	-10	26
6	14	84	-7	5	70	-12
5	15	75	-9	5	75	-14	0

Question 6

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost.  Ignore fixed costs. The owners of the amusement part want to maximize profits.

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Price ($)	Quantity
	Adults	Children
5	15	20
6	14	18
7	13	16
8	12	14
9	11	12
10	10	10
11	9	8
12	8	6
13	7	4
14	6	2

 Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

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Always! We start from scratch—no copying, no AI—just pure, human-written work with solid research and citations. You can even get a plagiarism report to confirm it’s 95%+ unique, ready for worry-free submission.

Price	Quantity	Total Revenue	Marginal Revenue	Marginal Cost	Total Can You Match Any Citation Style? You bet! From APA to IEEE, our writers nail every style with precision. Give us your guidelines, and we’ll craft a paper that fits your academic standards perfectly, no sweat.   Cost	MR-MC	Profit
14	8	112		5	40		72
	11	143	10.33	5	55	5.33	88
12		168	8.33	5	70	3.33	98
11	17	187	6.33	5	85	1.33
	20	200	4.33	5	100	-0.67	100
9		207	2.33	5	115	-2.67	92
8	26	208	0.33	5	130	-4.67
	29	203	-1.67	5	145	-6.67	58
6		192	-3.67	5	160	-8.67
5	35	175	-7.67	5	190	-12.67	-38

 

Question 7

Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.)

Make sure you include the profit with and without price discrimination  in your answer.

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Question 8

Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.

Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below.

The cost to Time Warner is $1 per customer for licensing fees.

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Preferences

	Showtime	History Chanel
Customer 1	9	2
Customer 2	3	8

 

Question 9

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Should Time Warner bundle or sell separately?  Your answer needs to include the unbundled and bundled profits. 

Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both separately and as a bundle?

Your answer must include the profit with mixed bundling.

14

7

11

10

8

13

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