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sergejj [24]
4 years ago
15

A railroad which runs between two cities offers two products: passenger and freight service. The marginal cost of carrying an ex

tra ton of freight is $0, and the marginal cost of carrying an extra passenger is $1. There are joint, fixed costs of $19,000 per day. There is no other competitor in this market. The daily demand for passenger service is with Qp the number of passengers and Pp the price of a two-way ticket. The daily demand for freight service is
Pp = 8 - 0.005Qp with Qp the number of passengers and Pp the price of a two-way ticket. The daily demand for freight service is Pf= 10-0.001Qf with Qf in tons and Pf the price per ton.
a. Currently, Pp $5 per passenger and P S8 per metric ton. Please calculate the railroad's revenues from passenger service and freight service, respectively. In addition, calculate the railroad's overall profit. b. A manager at the railroad argues that prices should be raised on both products to increase profit. Do you agree with the argument? What pricing would you recommend for each product?
c. Another manager argues that the firm can use price differentiation to improve profit. Please recommend a specific price differentiation scheme for the railroad's passenger and/or freight service, and explain how it will work. b. c.

Business
1 answer:
Karolina [17]4 years ago
5 0

Answer:

The complete question is found in the attachment

Explanation:

The explanation is found in the attachment

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Answer:

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5 0
3 years ago
On January 1, Franz Co. accepted a 30-day, 6% note in the amount of $5,000 from Bria Co., a customer. On January 31, the due dat
Blababa [14]

Answer:

The answer is:

Dr Cash $5,025

Cr: Receivable $5,000

Cr: Interest Revenue $25

Explanation:

The year is 360 days.

Annual rate is 6%

Therefore, interest rare for the 30-day is 1.5%[(90/360) x 6%]

So, the interest on the rate is:

0.5% x $5,000

$25.

The total amount collected from Bria will be principal + interest

$5,000 + $25 = $5,025

According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.

So we have:

Dr Cash $5,025

Cr: Receivable $5,000

Cr: Interest Revenue $25

4 0
3 years ago
Once a company has located several vendors, the next step in the purchasing process is to
jarptica [38.1K]

Answer:

D

Explanation:

4 0
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Read 2 more answers
Elmer’s utility function is U(x, y) = min{x, y2}. If the price of x is $25 and the price of y is $15 and if Elmer chooses to con
Arte-miy333 [17]

Answer:

the income is $1,330

Explanation:

The computation of the income is shown below;

Given that

U(x, y) = min{x, y2}

Price of x is $25

ANd, the prcie of Y is $15

So,

25X + 15Y = M

if Y = 7,

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At eqm, X = Y^​​​​​​2 = 49

Then ,

M = 25 × 49 + 15 × 7

= 1225 + 105

= 1330

Hence, the income is $1,330

The same should be relevant and considered too

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3 years ago
Wireless communications is likely to be viewed as an essential part of an enterprise network infrastructure when:
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