MANAGERIAL ECONOMICS
5th Edition
ISBN: 9781337106658
Author: FROEB
Publisher: CENGAGE L
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Chapter 12, Problem 12.1IP
To determine
The optimization of a parking lot at zero marginal cost.
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Suppose your elasticity of demand for your parking lot spaces is –2, and price is $8/day. If your MC is zero, and your capacity is 80% full at 9 A.M. over the last month, are you optimizing?
Suppose your elasticity of demand for your
parking lot space is -2, and price is $8 per day. If
your MC is zero, and your capacity is 80% full at
9 A.M., over the last month, are you optimizing?
When the price of a gallon of milk increases from $6 to $8, quantity demanded decreases to 27
gallons. Assuming the price elasticity of demand for milk is -0.3, what is the original quantity
demanded? (assuming further that this is the point elasticity relative to the original point on the
demand curve.) Please make sure you give a numerical answer with no units and/or space or
period (.) or comma (,) before or after your answer.
Enter your answer here
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