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 2 $1), where Pis 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?

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 2 $1), where Pis 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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Description: A city government is considering renting space in anall day parking garage for its 100 employees. Thegovernment estimates these employees' demandfunction for parking spaces is 150 5ÓP (P > $1), wherePis the per-day price of parking, and the city wil

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Chapter1: Combinatorial Analysis

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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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Question

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 5ÓP (P > $1), where
Pis 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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