Posted by Chris on Monday, January 12, 2009 at 2:02pm.
a private garage owner has identified two distinct market segments: short term parkers and all day parkers with respective demand curves of Ps = 3(Qs/200) and Pc = 2(Qc/200). Here Pis the average hourly rate and Q is the number of cars parked at this price. The garage owner is considering charging different prices (on a per hour basis) for short term parking and all day parking. the capacity of the garage is 600 cars and the cost of adding cars up to this limit is negligible.
What price should he charge for each type of parker? How many type of each parkerwill use the garage at this prices?

Managerial Economics  economyst, Tuesday, January 13, 2009 at 9:18am
Take a shot, what do you think.
Hint: you have a pricediscriminating monopolist. First determine the Marginal revenue equations for each market. Marginal Cost is zero in both. So, allocate the marginal car to the market where MR is highest. Since the two demand curves have the same slope, at some point the two MR in each market will be the same  at that point allocate the cars 50/50.

Managerial Economics  Anonymous, Monday, October 26, 2015 at 6:12pm
2(qs/200)=12(qc/200)
Answer This Question
Related Questions
 Economics  A city must decide whether to build a downtown parking garage and ...
 Math  translate into a word problem then solve. One fourth of the villains ...
 International TradeEconomics  The demand and supply curves for an import...
 economics  This is going to be really long, but I want to see if my answers are...
 economics  A monopolist faces market demand given by P = 200 â€“ Q. For this ...
 Managerial Economics  Given the demand & supply Function for product 'x' at ...
 Managerial Economics  When developing shortrun cost curves, it is assumed that...
 Economics  Assume the demand for beef is given by Qd = 22 + 0.1 Y – 10Pb + 5 ...
 comm155  can some one please check my home work for me to see if all the ...
 Economics  What would a graph illustrating private demand and supply curves in ...
More Related Questions