Question

In: Economics

2. A night-club owner has both the student (S) and non-student (NS) customers. The demand for...

2. A night-club owner has both the student (S) and non-student (NS) customers. The demand for drinks by a typical student is QS = 18 - 3P. The demand for drinks by a typical non-student customer is QNS = 10 – 2P. There are equal number of students and non-students. The marginal cost of each drink is $2. If the club owner could easily identify the groups and can serve each group by offering an entry-fee to the club and number of drink tokens

(a) What would be the entry-fee and the number of drink tokens for each student.

(b) What would be the entry-fee and the number of drink tokens for non-each student.

(c) If there were 100 students and 100 non-students, what would the club owner’s profit be under this pricing regime?

(d) What would you call this pricing regime?

Solutions

Expert Solution

Rahul Sunny answered 7 months ago
Next > < Previous

Related Solutions

A nightclub owner has both students and adult customers. The demand for drinks by a typical...
A nightclub owner has both students and adult customers. The demand for drinks by a typical student is Qs= 30-3p The demand for a typical adult is Qa= 15-2p There are equal numbers of students and adults. The marginal cost of each drink is $3. What price will the club owner set if she cannot discriminate between the two groups? What will her total profit be at this price? If the club owner could separate the groups and practice third-degree...
1) A club is choosing 2 members to serve on a committee. The club has nominated...
1) A club is choosing 2 members to serve on a committee. The club has nominated 2 women and 2 men. Based on chance alone, what is the probability that one woman and one man will be chosen to be on the committee? rounded to 4 decimal places 2) A club is choosing 2 members to serve on a committee. The club has nominated 2 women and 2 men. Based on chance alone, what is the probability no women are...
All questions must be answered in details ELASTICITY 4. Jumping Joe’s Night Club has found that...
All questions must be answered in details ELASTICITY 4. Jumping Joe’s Night Club has found that when they offer half price admission to the club on Wednesday nights (when business is typically slow), their total revenue rises. (a) Is their demand elastic? Explain. (b) Is it a good idea for them to continue with this promotion? Why? 7. The elasticity of demand for Dave’s Famous is Pizza is 2.6. Dave is considering raising pizza prices by 20%. Is this a...
All questions must be answered in details ELASTICITY 4. Jumping Joe’s Night Club has found that...
All questions must be answered in details ELASTICITY 4. Jumping Joe’s Night Club has found that when they offer half price admission to the club on Wednesday nights (when business is typically slow), their total revenue rises. (a) Is their demand elastic? Explain. (b) Is it a good idea for them to continue with this promotion? Why? 7. The elasticity of demand for Dave’s Famous is Pizza is 2.6. Dave is considering raising pizza prices by 20%. Is this a...
A student club has 65 members; of these members, 28 are male and22 are freshmen....
A student club has 65 members; of these members, 28 are male and 22 are freshmen. Of the males, 10 are also freshmen.What is the probability that a randomly selected student in the club is a freshman?  What is the probability that a randomly selected student in the club is a male or a freshman?  What is the probability that a randomly selected student in the club is male given that the student is a freshman?  What is the probability that a randomly...
A student club has 65 members; of these members, 28 are male and 22 are freshmen....
A student club has 65 members; of these members, 28 are male and 22 are freshmen. Of the males, 10 are also freshmen. Answer the questions below as a fraction in the form numerator/denominator. Hint: it may be useful to create your own cross tabulation table. What is the probability that a randomly selected student in the club is a freshman? What is the probability that a randomly selected student in the club is a male or a freshman? What...
The time a student sleeps per night has a distribution with mean 6.15 hours and a...
The time a student sleeps per night has a distribution with mean 6.15 hours and a standard deviation of 0.5 hours. Find the probability that average sleeping time for a randomly selected sample of 40 students is more than 6.29 hours per night. Answer: (keep 4 decimal places)
if S is non empty and it has a lower bound, then it has an infimum, inf S
  if S is non empty and it has a lower bound, then it has an infimum, inf S Start of proof: b<=s for all s in S LB: {y in R:y<=S, for all s in S} LB is bounded above by X and LB is non empty since b is in LB Find supLB=infS, thats what needs to be completed
Janice Underwood, an MBA student in Southeastern University , has been hired as a night manager...
Janice Underwood, an MBA student in Southeastern University , has been hired as a night manager of Campus Deli and Sub Shop (CDSS), which is located adjacent to the campus. Sales were $ 875,000 last year; variable costs were 60 % of sales; and fixed costs were $ 50,000. Therefore, EBIT totalled $ 300,000. Since the university ‘s enrollment is capped, the store’s EBIT is expected to be constant over time. Since no expansion capital is required, CDSS pays out...
REM (rapid eye movement) sleep is sleep during which most dreams occur. Each night a person has both REM and non-REM sleep.
  REM (rapid eye movement) sleep is sleep during which most dreams occur. Each night a person has both REM and non-REM sleep. However, it is thought that children have more REM sleep than adults. Assume that REM sleep time is normally distributed for both children and adults. A random sample of ?1 = 12 children (9 years old) showed that they have an average REM sleep time of ?1 = 2.5 hours per night with ?1 = 0.6 hour....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT