FIT BUS 5421 Week 5-3 Homework Problems.docx - BUS 5421...

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BUS 5421Problems 12-1, 14-4, & 14-6Chapter 1212-1 Parking Lot OptimizationSuppose your elasticity of demand for your parking lot spaces is -2 and the price is $8 per day. If your MC is zero (0) and your capacity is 80% full at 9 A.M. over the last month, are you optimizing?
Chapter 1414-4 Microwave OvensA 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 generally value 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 two different models. The manufacturer has determined that the men

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