3. (Revenue Management) Berkeley Bed and Breakfast has 12 rooms, the room price is $200 per night, the marginal cost of cleaning, etc., for having a room occupied is $30, and it costs the B&B $100 to turn away customers who have reservations. Customers with reservations have a 5% chance of canceling, without penalty. Assume there are no walk-ins (all customers reserve in advance). How many reservations should be accepted to maximize the expected profit? (Hint: This will require a little bit of trial and error, and this is not a newsvendor problem.)

The domestic demand for DVD players is given by Q? = 100 − ? and the domestic supply is given by Q? = ?. DVD players can currently be freely imported at the world price of $20. The government is planning to impose a tariff of $10 per unit on imported DVD players. With the tariff, how many units would be imported? How much would domestic producer surplus change if the government introduces a $10 import duty per DVD player? How much revenue would the domestic government collect from the imports of DVD players

Consider the following table:

All answers should be a whole integer. DO NOT put a dollar sign.

The Average Fixed Cost of producing 4 units of output is _________

The Average Variable Cost of producing 2 units of output is ________

The Marginal Cost of the fourth unit of output is ________

The profit-maximizing quantity is _______

The amount of profit that the monopolist realizes is _______

Let a perfectly competitive firm's short-run total cost function be;

C(p) = 100q - 4q² + 0.2q³ + 450

a) Find the Marginal Cost (MC), Variable Cost (VC) and Average Variable Cost (AVC)?

b) Suppose the Market Price is P = $100, what would be the profit-maximizing quantity?

c) Now suppose Average Total Cost (ATC) = $116 at the profit-maximizing quantity. Is this firm making a loss, profit or breakeven?

d) Should the firm shut down or continue to produce? Explain in detail.

A prescription drug is produced in the United States and sold internationally.
Each unit of the drug costs $60 to produce. In the German market, you sell the drug for
150 euros per unit. The current exchange rate is 0.667 U.S. dollars per euro. Current
demand for the drug is 100 units, and the estimated elasticity is 2.5. Assuming a linear
demand curve, determine the appropriate sales price (in euros) for the drug. SOLVE USING EXCEL SOLVER. NOTE: aLL PARTS OF THE QUESTION ARE ALREADY INCLUDE HERE. NO EXTRA DATA SHEET.

A wholesaler has 2500 last year model electric scooters already in stock. It can order some more for the upcoming end-of-year sale. To make an order it costs $10,000 plus $150 for every scooter ordered. The price for which the wholesaler can sell to stores is $250. The total demand is estimated to have an exponential distribution with a mean of 8000. The scooters not sold to stores by the end of November can be later sold to discount stores for $100 each. How many scooters should the wholesaler order under these conditions?

1a) In this problem, p is in dollars and x is the number of units.

The demand function for a certain product is

p = 100 − x²

and the supply function is

p = x² + 4x + 84.

Find the equilibrium point.

(x, p) =

Find the consumer's surplus there. (Round your answer to the nearest cent.)

1b)In this problem, p is in dollars and x is the number of units.

Suppose that the supply function for a good is

p = 4x² + 22x + 7.

If the equilibrium price is $217 per unit, what is the producer's surplus there? (Round your answer to the nearest cent.)

Consider a Cournot-competition under incomplete information. Two firms decide their quantity of production simultaneously. The market price P is determined by P = 100 − (q1 + q2). Assume that firm 1’s per-unit cost is commonly known at zero. On the other hand, firm 2’s per-unit cost is private information and is either at 0 or at 2. Suppose in the firm 1’s belief, the probability of c2 = 0 is 1 3 and the probability of c2 = 2 is 2 3 . Find the Bayesian Nash equilibrium in this game.

Lower-of-Cost-or-Market (LCM) Method The Venner Company had the following inventory at year-end: Unit Price Quantity Cost Market Fans Model X1 300 $48 $49 Model X2 250 52 54 Model X3 400 59 56 Heaters Model B7 500 54 58 Model B8 290 65 62 Model B9 100 71 68 Required Determine the value of ending inventory after applying the lower-of-cost-or-market method to each item of inventory.

Assume that a monopolist is able to sell rocks in two separate markets, market A and market B. Assume that there is no trade between these markets. Assume that the monopolist has a constant marginal cost of $10. Assume that the demand curve for rocks in market A is as follows: P=200-Q

Assume that the demand curve for rocks in market B is as follows: P=100-2Q

1. In order to maximize profits, what price will the monopolist charge in each market?

2. What is output in each market?

3. What are profits for the monopolist in each market?