The inverse demand curve facing a resort hotel is400-PL= 100 - QL350-during the low season and300-PH = 350 - QH250-during the high season. The resort's marginal cost is $50 per night incleaning costs for the room and general maintenance and administration.The resort only has 75 rooms. What is the resort's profit-maximizingpeak-load pricing strategy? Illustrate the solution in a diagram.200-%242 150-1.) Using the point drawing tool, indicate the profit-maximizing price duringthe low season. Label this point 'e .'100-50-MC2.) Using the point drawing tool, indicate the profit-maximizing price duringthe high season. Label this point 'ey.'MR DMR50100150200250300350400Carefully follow the instructions above, and only draw the required objects.Q, Rooms per night.....p, $ per night

The peak load pricing strategy is being used by a monopolist. They tend to produce at the point…

The inverse demand curve facing a resort hotel is 400- PL = 100 - QL 350- during the low season and 300- PH = 350 - QH 250- during the high season. The resort's marginal cost is $50 per night in cleaning costs for the room and general maintenance and administration. The resort only has 75 rooms. What is the resort's profit-maximizing peak-load pricing strategy? Illustrate the solution in a diagram. 200- 2 150- 1.) Using the point drawing tool, indicate the profit-maximizing price during the low season. Label this point 'e.' 100- 50- MC 2.) Using the point drawing tool, indicate the profit-maximizing price during the high season. Label this point 'ey. MRH 150 200 250 300 Q, Rooms per night MR D 0- 50 100 350 400 Carefully follow the instructions above, and only draw the required objects. **** p, $ per night

The inverse demand curve facing a resort hotel is 400- PL = 100 - QL 350- during the low season and 300- PH = 350 - QH 250- during the high season. The resort's marginal cost is $50 per night in cleaning costs for the room and general maintenance and administration. The resort only has 75 rooms. What is the resort's profit-maximizing peak-load pricing strategy? Illustrate the solution in a diagram. 200- 2 150- 1.) Using the point drawing tool, indicate the profit-maximizing price during the low season. Label this point 'e.' 100- 50- MC 2.) Using the point drawing tool, indicate the profit-maximizing price during the high season. Label this point 'ey. MRH 150 200 250 300 Q, Rooms per night MR D 0- 50 100 350 400 Carefully follow the instructions above, and only draw the required objects. **** p, $ per night

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The inverse demand curve facing a resort hotel is during the low season and PL = 100-Q₁ PH = 350 – QH during the high season. The resort's marginal cost is $50 per night in cleaning costs for the room and general maintenance and administration. The resort only has 75 rooms. What is the resort's profit- maximizing peak-load pricing strategy? Illustrate the solution in a diagram. 1.) Using the point drawing tool, indicate the profit-maximizing price during the low season. Label this point 'e' 2.) Using the point drawing tool, indicate the profit-maximizing price during the high season. Label this point 'eH Carefully follow the instructions above, and only draw the required objects. p. $ per night 69 400- 350- 300- 250- 200- a 150- 100- 50- 0- 0 MR D MRH 50 100 150 200 250 300 Q, Rooms per night MG DH 350 400 Q ON
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