Management of AG Travel and Tour has identified two
groups of individuals that
would be interested in the vacation package consisting of room and
board and/or
entertainment. The maximum amount that group 1 is willing to pay
for room and
board is GHC 2500 and for entertainment is GHC 500. For group 2,
the maximum
amount they are willing to pay for room and board is GHC 1800 and
for
entertainment is GHC 750. Although AG Travel and Tour is not able
to identify
members of either group, it does know that each group values the
components of
the package differently. Assuming there are an equal number of
members in each
group and that the total membership in each group is a single
individual. If the
marginal cost of providing the service (room and board and/or
entertainment) to
each group is GHC 1000.
i. How much will the hotel charge members of each group for the
vacation
package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of
each group,
what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of
(iii) above?
v. If AG Travel and Tour wants to charge a package price, what is
the highest
price it can charge?
vi. What profit will AG Travel and Tour make if it charges the
package price
found in (v) above?
In: Economics
In: Economics
Question One
Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of (iii) above?
v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above?
In: Economics
Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of (iii) above?
v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above?
In: Economics
Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000. i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group ii. How much will the profit for AG Travel and Tour be? iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product iv. What will be the profit for AG Travel and Tour in the case of (iii) above v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge? vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above
In: Economics
Management of AG Travel and Tour has identified two groups of
individuals that would be interested in the vacation package
consisting of room and board and/or entertainment. The maximum
amount that group 1 is willing to pay for room and board is GHC
2500 and for entertainment is GHC 500. For group 2, the maximum
amount they are willing to pay for room and board is GHC 1800 and
for entertainment is GHC 750. Although AG Travel and Tour is not
able to identify members of either group, it does know that each
group values the components of the package differently. Assuming
there are an equal number of members in each group and that the
total membership in each group is a single individual. If the
marginal cost of providing the service (room and board and/or
entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the
vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of
each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of
(iii) above?
v. If AG Travel and Tour wants to charge a package price, what is
the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the
package price found in (v) above?
In: Economics
A firms demand function for a good is given by P = 107-2Q and their total cost function is given by TC = 200+3Q .
i). Obtain an expression for total revenue profit in terms of Q
ii). For what values of Q does the firm break even.
iii). llustrate the answer to (ii) using sketches of the total cost function, the total revenue function and the profit function.
iv). From the graph estimate the maximum profit and the level of output for which profit is maximised.
In: Economics
Tiger Inc. has total sales of $8,821, cost of goods sold is $2,832, general and administrative expenses are $1,240, and depreciation is $523. The tax rate is 21 percent. The firm does not have any interest expense. What is the operating cash flow?
Group of answer choices
$3117.71
$3,859.65
$3,336.65
$3,751.71
In: Finance
Which of the following is always downward-sloping?
Multiple Choice
The average total cost curve when it is above the marginal cost curve.
The marginal cost curve when it is above the average total cost curve.
The average total cost curve when it is below the marginal cost curve.
The marginal cost curve when it is below the average total cost curve.
In: Economics
Assume that a firm in perfectly competitive industry has the following total cost schedule:
|
Q |
TC |
|
10 |
110 |
|
15 |
150 |
|
20 |
180 |
|
25 |
225 |
|
30 |
300 |
|
35 |
385 |
|
40 |
480 |
In: Economics