Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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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 per day. If your MC is zero, and your lot is 80% full at 9 A.M. over the last month, are you optimizing?
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?
Chapter 12 Solutions
Managerial Economics: A Problem Solving Approach
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