Question

In: Economics

1 City Choice ( show all work) A sports franchise is choosing between two cities: city...

1 City Choice ( show all work)

A sports franchise is choosing between two cities: city A and city B. The team analyst has estimated the following demands for each city:

City A: PA = 90 − .001A

City B: PB = 130 − .002B

where A is the quantity of fans in city A, and B is the quantity of fans in city B. The analyst aalso estimates that the marginal cost in each city is $10, and the total cost is 10A and 10B in each city.

a) Find the profit maximizing price and quantity if the team locates in city A.

b) Find the profit maximizing price and quantity if the team locates in city B.

c) What are the maximum profits that could be achieved in each city (given the cities can’t subsidize the team)?

Solutions

Expert Solution


Related Solutions

SHOW CLEAR WORK ON EXCEL A borrower is faced with choosing between two loans. Loan A...
SHOW CLEAR WORK ON EXCEL A borrower is faced with choosing between two loans. Loan A is available for $75,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. a. If the loan is repaid after 20 years, which loan...
2 Franchise Value ( Show all work) a) Suppose that Mark Cuban wants to purchase the...
2 Franchise Value ( Show all work) a) Suppose that Mark Cuban wants to purchase the Mavericks in 2000 (call this year 0), and he expects to receive $400,000 in profits in years 1, 2, and 3 (each year). Now suppose that value of the Mavericks in year 3 is $500 million and that the interest rate is 4%. What is price that Mark would pay to make him break even in 3 years (i.e. that makes E[B] – p...
Create a emergency pandemic plan for the sports franchise of your choice using the text CHs...
Create a emergency pandemic plan for the sports franchise of your choice using the text CHs that we have gone over to outline your plan.
Professor drives a Tesla to travel from city ? to city ?. The distance between cities...
Professor drives a Tesla to travel from city ? to city ?. The distance between cities ? and ? is ? miles. The Tesla can go up to ? miles before it needs a charge and there are many charging locations along the way including those in city ? and city ?. Professor wants to minimize the number of charges needed so he can get to his destination ASAP. Assume that at any charging location there is at least another...
The income distribution in two cities is the following City A City B 10000 – 12000...
The income distribution in two cities is the following City A City B 10000 – 12000 10000 5000 – 7000 4000 12000 - 14000 5000 7000 – 9000 6000 14000 - 16000 20000 9000 – 11000 8000 16000 – 18000 50000 11000 – 13000 14000 18000 - 20000 40000 13000 – 15000 16000 20000- 22000 2000 15000 - 17000 2000 Find the standard deviation and the coefficient of Variation for each company and comment on the results.
Show All detailed work 1.Two new work designs are under consideration for possible adoption in an...
Show All detailed work 1.Two new work designs are under consideration for possible adoption in an assembly plant. A time study is conducted with 10 workers using design 1 and 12 workers using design 2. The means and standard deviations of their assembly times in minutes are shown below. Design 1                                              Design 2 Mean             78.3 minutes                  85.6 minutes Std Deviation 4.8 minutes                  6.5 minutes Is the mean assembly time significantly higher for work design 2? Test at the 5% level...
Calculations on Elasticity of Supply and Demand 1. Consider two cities, Control City and Freeburg, that...
Calculations on Elasticity of Supply and Demand 1. Consider two cities, Control City and Freeburg, that are initially identical, with an equilibrium wage $100, equilibrium employment 100,000 jobs, and 50 million square feet of housing (500 square feet per worker). The government in Control City fixes the maximum total square footage in the city at its current level: new housing can be built, but every square foot of new housing requires that one square foot of old housing be retired...
You’re choosing between two job offers. Both are with respected organizations and desirable work. The first...
You’re choosing between two job offers. Both are with respected organizations and desirable work. The first offer is with a large, well-established firm at $22,000 per year in salary plus noncontributory benefits worth $7,000 per year. The other job is a small business with salary of $30,000 per year without employer voluntary benefits (the employer is required to pay for social insurance programs). a. What factors should be considered in determining the better offer? Which package do you think maximizes...
Show all of your work in the space provided. Show all of your work to get...
Show all of your work in the space provided. Show all of your work to get full credit. All answers have to be in SI units(20 pints for each questions). 2.Following are the two sets of position and time data collected using a motion sensor and cart.        Table 1. table 2 Time (s) Position (m) V(instantaneous) (m/s) 0 10.0 0.25 13.0 0.50 16.5 0.75 21.0 1.00 26.5 1.25 32.3 1.50 38.0 1.75 44.5 2.00 52.0 2.25 60.0 2.50 68.5...
Please show all work and all steps. 1.) Two cards are drawn from a standard 52-card...
Please show all work and all steps. 1.) Two cards are drawn from a standard 52-card playing deck. What is the probability that the draw will yield an ace and a face card? 2.) Articles coming through an inspection line are visually inspected by two successive inspectors. When a defective article comes through the inspection line, the probability that it gets by the first inspector is .1. The second inspector will "miss" five out of ten of the defective items...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT