An economist gives the following advice to a museum director: "You should introduce "peak pricing". At timeswhen the museum has few visitors, you should admit visitors for free. And at times when the museum hasmany visitors, you should charge a higher admission fee."a) When the museum is quiet, is it rival or non-rival in consumption? Is it excludable or non-excludable? What%23type of good-public or private - is the museum at those times? What would be the efficient price to chargevisitors, and why? (I.e., should the price = $0, or should it be >$0?)%3Db) When the museum is busy, is it rival or non-rival in consumption? Is it excludable or non-excludable? Whattype of good is the museum at those times? What would be the efficient price to charge visitors, and why?

Rivalry and excludability are the characteristics of the good which is used to differentiate a…

An economist gives the following advice to a museum director: "You should introduce "peak pricing". At times when the museum has few visitors, you should admit visitors for free. And at times when the museum has many visitors, you should charge a higher admission fee." a) When the museum is quiet, is it rival or non-rival in consumption? Is it excludable or non-excludable? What type of good-public or private - is the museum at those times? What would be the efficient price to charge visitors, and why? (I.e., should the price $0, or should it be >$0?) b) When the museum is busy, is it rival or non-rival in consumption? Is it excludable or non-excludable? What type of good is the museum at those times? What would be the efficient price to charge visitors, and why?

An economist gives the following advice to a museum director: "You should introduce "peak pricing". At times when the museum has few visitors, you should admit visitors for free. And at times when the museum has many visitors, you should charge a higher admission fee." a) When the museum is quiet, is it rival or non-rival in consumption? Is it excludable or non-excludable? What type of good-public or private - is the museum at those times? What would be the efficient price to charge visitors, and why? (I.e., should the price $0, or should it be >$0?) b) When the museum is busy, is it rival or non-rival in consumption? Is it excludable or non-excludable? What type of good is the museum at those times? What would be the efficient price to charge visitors, and why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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