Question
In: Economics
A large city hotel serves two types of customers/guests: general visitors (gv), and convention attendees (ca)....
A large city hotel serves two types of customers/guests: general visitors (gv), and convention attendees (ca). Their respective daily demand functions are: For the general visitors segment Q gv = 1,400 – 10 Pgv, and for the convention attendees segment Qca = 2,400 -20 Pca. The marginal cost for serving an additional guest is the same, regardless of the type of customer, and the hotel’s daily Total Cost function is: T.C. = 18,200 + 30 Q.
- With price discrimination, how many rooms should this hotel offer to in each market segment, and what rate (price) should it charge to each group of customers?
- What would this hotel’s daily profits be?
- What would the mark-up, as a percentage of the membership price, be in each market segment?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson...
A queueing system serves two types of customers. Type 1
customers arrive according to a Poisson process with a mean rate of
5 per hour. Type 2 customers arrive according to a
Poisson process at a mean rate of 3 per hour. The
system has two servers, both of which serve both types of customer.
All service times have exponential distribution with a mean of 10
minutes. Service is provided on a first-come-first-served
basis.
a. What is the probability distribution...
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson...
A queueing system serves two types of customers. Type 1
customers arrive according to a Poisson process with a mean rate of
5 per hour. Type 2 customers arrive according to a
Poisson process at a mean rate of 3 per hour. The
system has two servers, both of which serve both types of customer.
All service times have exponential distribution with a mean of 10
minutes. Service is provided on a first-come-first-served
basis.
a. What is the probability distribution...
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson...
A queueing system serves two types of customers. Type 1
customers arrive according to a Poisson process with a mean rate of
5 per hour. Type 2 customers arrive according to a
Poisson process at a mean rate of 3 per hour. The
system has two servers, both of which serve both types of customer.
All service times have exponential distribution with a mean of 10
minutes. Service is provided on a first-come-first-served
basis.
a. What is the probability distribution...
The Empire Hotel is a full-service hotel in a large city. Empire is organized into three...
The Empire Hotel is a full-service hotel in a large city. Empire
is organized into three departments that are treated as investment
centers. Budget information for the coming year for these three
departments is shown as follows. The managers of each of the
departments are evaluated and bonuses are awarded each year based
on ROI. Empire Hotel
Hotel Rooms Restaurants Health Spa
Average investment $ 8,148,000 $ 4,761,000 $ 1,025,000
Sales revenue $ 10,000,000 $ 2,000,000 $ 600,000
Operating expenses...
The Empire Hotel is a full-service hotel in a large city. Empire is organized into three...
The Empire Hotel is a full-service hotel in a large city. Empire
is organized into three departments that are treated as investment
centers. Budget information for the coming year for these three
departments is shown as follows. The managers of each of the
departments are evaluated and bonuses are awarded each year based
on ROI.
Empire Hotel
Hotel Rooms
Restaurants
Health Spa
Average investment
$
8,064,000
$
4,908,000
$
750,000
Sales revenue
$
10,000,000
$
2,000,000
$
600,000
Operating expenses...
Hotel One is one of the two hotels serving Dayville, a small town in the US Midwest. Fifty percent of its customers are out-of-town visitors to the local college
BackgroundHotel One is one of the two hotels serving Dayville, a small town
in the US Midwest. Fifty percent of its customers are out-of-town
visitors to the local college, 30 percent are visiting Dayville for
business purposes, and the remaining 20 percent of Hotel One’s
customers are leisure travelers. The hotel is within one mile from
campus, approximately four miles from the city center, and eight
miles from the airport. It is easy to reach by car, taxi, or city...
Sarabeth Tucek is monopoly singer from New York City and has identified two types of customers...
Sarabeth Tucek is monopoly singer from New York City and has
identified two types of customers that attend her concerts: adults
(A); and non-adults (N). Adult demand is pA = 100 – qA and
non-adult demand is pN= 50 – (1/2)qN, where p is the price per
concert ticket, and q is the quantity of tickets demanded. Her
marginal cost (MC = AC) of playing music to an additional patron is
10. Assume that Sarabeth practices third-degree price
discrimination.
....
(Central Limit Theorem) An insurance company serves 10 large customers. The insurance claim placed by each...
(Central Limit Theorem) An insurance company serves 10 large
customers. The insurance claim placed by each customer in a year is
uniformly distributed between 0 and 100. Assume that the insurance
claims from different customers are independent. Use the central
limit theorem to approximately compute the probability that the
total insurance claim placed by all customers in a year exceeds
625. Let Φ(x) denote the cumulative distribution function of a
standard normal distribution, i.e. a normal distribution with mean
0...
Two shops A and B attract two types of customers: price-sensitive customers, who shop at the...
Two shops A and B attract two types of customers:
price-sensitive customers, who shop at the lower-priced shop, and
time-sensitive customers, who shop at whichever shop is on their
side of the street. A customer of either type purchases on average
10 goods. Assume there are 800 price-sensitive customers and 500
time-sensitive customers buying goods on any given day. The
wholesale price the shop pay per good is $3. For simplicity, assume
that they can charge $3.50, $4.00, or $4.50...
Two types of customers make up the market for Armoyas. There are 100 type A customers,...
Two types of customers make up the market for Armoyas. There
are 100 type A customers, each of whom is willing to pay up to $10
for an Armoya. There are 50 type B customers, each willing to pay
up to $8 for an Armoya. No customer wishes to buy more than a
single Armoya. The monopolist cannot differentiate between the
types of customer. The average and marginal cost of production is
constant at $6/Armoya.
a)What is the selling price...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Changes to Itemized Deduction Tax reform that affects both individuals and businesses was enacted in December...
- Explain why some businesses use both above the line and below the line methods of promotion...
- What are the rich and lean perspectives in developmental psychology ? Why does this "rich vs...
- In order to manage change and implement change strategies, it is important to avoid implementing irrelevant...
- Smoky Mountain Corporation makes two types of hiking boots—Xtreme and the Pathfinder. Data concerning these two...
- Drug delivery systems are often ‘pelletized’ as spheres. Construct the control volume. Determine the continuity equation...
- NIST cybersecurity framework. Summarize the purpose, approach, goals, and scope of this topic publication.( cite references)
ADVERTISEMENT