Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is Ps = 600 - 20g. In winter the inverse demand is Pw = 600 - Qw Paradise has a total of 250 yachts available for rental on a monthly basis. Which season is peak season? Why? What are the profit-maximizing prices in both seasons? Assume marginal cost is zero. Peak season is winter because demand is higher. The profit-maximizing peak-load price for the summer is Ps = 5 and the optimal peak-load price for the winter is Pw = (Enter your response rounded to two decimal places.)

Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is Ps = 600 - 20g. In winter the inverse demand is Pw = 600 - Qw Paradise has a total of 250 yachts available for rental on a monthly basis. Which season is peak season? Why? What are the profit-maximizing prices in both seasons? Assume marginal cost is zero. Peak season is winter because demand is higher. The profit-maximizing peak-load price for the summer is Ps = 5 and the optimal peak-load price for the winter is Pw = (Enter your response rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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