Question

In: Economics

There is a hotel in Imatra (Finland) which is very close to Russian border. The demand...

There is a hotel in Imatra (Finland) which is very close to Russian border. The
demand function of Finnish consumers for this hotel is Q = 1000 - P. The demand
function of Russian consumers for this hotel would be Q = 1400 - P if they had not
travel to Imatra, but they have to travel and cost of travelling is 200. MC of hotel is
200 for one visitor. Find the difference of profits with price discrimination and without
price discrimination.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Suppose the majority of the residents of Birraland live close to the border and have access...
Suppose the majority of the residents of Birraland live close to the border and have access to beer at a lower price either in another province or in a neighboring country. What do you expect to occur? What does this imply about the ability of the local government of Birraland to independently set their beer pricing policy? Which jurisdiction is likely to be more problematic, other provinces, or the neighboring country?
Suppose the majority of the residents of Birraland live close to the border and have access...
Suppose the majority of the residents of Birraland live close to the border and have access to beer at a lower price either in another province or in a neighbouring country. What do you expect to occur? What does this imply about the ability of the local government of Birraland to independently set their beer pricing policy? Which jurisdiction is likely to be more problematic, other provinces or the neighbouring country?
Shrewsbury Herbal Products, located in central England close to the Welsh border, is an old-line producer...
Shrewsbury Herbal Products, located in central England close to the Welsh border, is an old-line producer of herbal teas, seasonings, and medicines. Its products are marketed all over the United Kingdom and in many parts of continental Europe as well. Shrewsbury Herbal generally invoices in British pound sterling when it sells to foreign customers in order to guard against adverse exchange rate changes. Nevertheless, it has just received an order from a large wholesaler in central France for £320,000 of...
Exploring a Hotel Franchise technology (Example Hotel 1,000 Seatle). Your job is to complete a very...
Exploring a Hotel Franchise technology (Example Hotel 1,000 Seatle). Your job is to complete a very thorugh detailed report on a hotel that is known for thier use of technology. Imagine you are the consumer and detailed very well eberything the consumer needs to know about that hotel. Breakdown each individual technology that is being used and how its being used to better the performance of the hotel. Why should these consumer consider the hotel that was picked and what...
The Wellington Plaza Hotel is located close to the main railway station in a large regional...
The Wellington Plaza Hotel is located close to the main railway station in a large regional city. Its main client base is business people visiting the city for work-related purposes. The second-largest group of clients consists of groups of (mainly) women visiting the city for its great shopping. All major department stores have a presence in the city and there are a number of specialty shops and factory outlets. Another large group of clients are groups of (mainly) men visiting...
John polled the Russian public about Vladimir Putin's popularity for a very long time before the...
John polled the Russian public about Vladimir Putin's popularity for a very long time before the 2000 election. The proportions in this problem come from their findings; the sample sizes are made up but are consistent with their polling techniques. (a) In May 2000, 478 of 783 Russians surveyed had a “highly favorable” or “somewhat favorable” opinion of Vladimir Putin. Test the hypothesis that less than 64% of Americans had an opinion this high of Vladimir Putin's at a significance...
A tennis ball is lobbed (from very close to the ground) at a speed of 11.5...
A tennis ball is lobbed (from very close to the ground) at a speed of 11.5 m/s and an angle of 47.9 degrees to the horizontal. (a) Find the horizontal distance traveled by the ball (the range) (b) At what other angle will one obtain the same range? (c) Which angle gives the highest point attained by the ball and what is this maximum height? (In all cases ignore air resistance)
Application: Elasticity and hotel rooms. The following graph input tool shows the daily demand for hotel...
Application: Elasticity and hotel rooms. The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value...
Avila Hotel has 300 rooms and charges $120 per room. The hotel estimates that the demand...
Avila Hotel has 300 rooms and charges $120 per room. The hotel estimates that the demand for the rooms follows a uniform distribution between 270 and 330 each day. Reservations may be canceled by 6pm with no penalty. The hotel estimates that 3% of the reservations are canceled by 6pm. Hence, the hotel allows overbooking by 20 room (the hotel allows up to 320 customers to make reservation). When more customers arrive than can be handled (e.g., more than 300...
What is derived demand? Give an example of derived demand for a hotel in your town.
What is derived demand? Give an example of derived demand for a hotel in your town.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT