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- September 13, 2020
- By menge

I need a help on #2-5. I also need help on 1b and 1c.

Please help ASAP!

1. A monopolist can segment three markets, and there are three demand functions: Q1=200-?10P1; Q2=70-?9P1; Q3 = 150-?8P3. Cost per item is $5. Answer the following: a. (1 points) If the monopolist is not limited by capacity, what prices should they charge? What is the resulting profit? What is the total consumer surplus? b. (1 point) If the monopolist has a capacity of 30 units, what prices should they charge? c. (3 points) If the capacity is increased to 100 units, what prices should they charge? Discuss your answer in comparison to parts a and b. 2. (5 points) Consider the case where a trucking company is selling units of capacity to ship from Orlando, FL to Charleston, SC. The total capacity is 100 units. Customers that order at least 2 weeks in advance pay $100 per unit. Otherwise, the cost is $300 per unit. Demand for the higher priced capacity is uniformly distributed on [25, 40]. Determine the protection level for the higher class. What is the booking limit? 3. (5 points) Repeat problem 2, but assume demand for the higher priced capacity is normally distributed with a mean of 30 units and standard deviation of 15 units. 4. (5 points) Suppose for problem 3 we charge $225 for customers that book at least 1 week in advance (but less than 2 weeks in advance). Further, demand for the highest priced class is normally distributed with a mean of 25 and standard deviation of 19 and demand for the middle priced class is normally distributed with a mean of 30 and standard deviation of 15. Determine the protection levels (and the equivalent booking limits). 5. (5 points) For problem 2, suppose the distribution of cancellations is normally distributed with a mean of 12 and standard deviation of 11. If they overbook and don?t have enough capacity, the cost to the company is $40 per unit. How much should they overbook?