BUS 5421Week 5 Assignment12.1 Suppose your elasticity of demand for your parking lot spaces is -2, and is $8 per day. If your MC is zero, and your capacity is 80% full at 9 am over the last month, are you optimizing?
14.4 A manufacturer of microwave ovens has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generallyvalue microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing 2 different models.