You own a private parking lot near shard building with a capacity of 600 cars. The demand for parking at this lot is estimated to be Q=1,000 - 2P, where Q is the number of customers with monthly parking passes and P is the monthly parking fee per car.Derive your marginal revenue schedule.What price generates the greatest revenues?Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlord are £25,000 per month. In addition, your insurance company charges you £20 per car per month for liability coverage and the shard building charges you £30 per car per month as part of its policy to discourage the use of private cars in the city centre.What is your profit maximising price? 7. You own a private parking lot near shard building with a capacity of 600 cars. The demandfor parking at this lot is estimated to be Q=1,000 - 2P, where Q is the number of customerswith monthly parking passes and P is the monthly parking fee per car.(a) Derive your marginal revenue schedule.(b) What price generates the greatest revenues?Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlordare £25,000 per month. In addition, your insurance company charges you £20 per car permonth for liability coverage and the shard building charges you £30 per car per month as partof its policy to discourage the use of private cars in the city centre.(c) What is your profit maximising price?

On a daily level, operating costs are linked with the upkeep and administration of a business.…

Answered: You own a private parking lot near…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You own a private parking lot near shard building with a capacity of 600 cars. The demand for parking at this lot is estimated to be Q=1,000 - 2P, where Q is the number of customers with monthly parking passes and P is the monthly parking fee per car.

Derive your marginal revenue schedule.
What price generates the greatest revenues?

Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlord are £25,000 per month. In addition, your insurance company charges you £20 per car per month for liability coverage and the shard building charges you £30 per car per month as part of its policy to discourage the use of private cars in the city centre.

What is your profit maximising price?

7. You own a private parking lot near shard building with a capacity of 600 cars. The demand
for parking at this lot is estimated to be Q=1,000 - 2P, where Q is the number of customers
with monthly parking passes and P is the monthly parking fee per car.
(a) Derive your marginal revenue schedule.
(b) What price generates the greatest revenues?
Your fixed costs of operating the parking lot, such as the monthly lease paid to the landlord
are £25,000 per month. In addition, your insurance company charges you £20 per car per
month for liability coverage and the shard building charges you £30 per car per month as part
of its policy to discourage the use of private cars in the city centre.
(c) What is your profit maximising price?

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