HW Wk5.docx - Homework Week 5 Individual Problem 12.1...

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Homework Week5Individual Problem 12.1 – Parking Lot OptimizationSuppose your elasticity of demand for your parking lot spaces is -2, and price is $8 per day. If your MC is zero, and your capacity is 80% full at 9 a.m. over the last month, are you optimizing?
Individual Problem 14.4 – Microwave OvensA manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrostfeature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating and auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple

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