Principles of Microeconomics Neil Roberts ECON 1150895 Spring2019 Assignment #5 (20 marks) Due: Saturday, March 30, 2019 at the beginning of class....
This is our hand in assignment. I am having a hard time answering these questions so I need help.
Principles of Microeconomics Neil RobertsECON 1150—895 Spring2019 Assignment #5 (20 marks) Due: Saturday, March 30, 2019 at the beginning of class.Late assignments will not he accepted. 1. Jimmy has a room that overlooks (from a distance) a major league baseball stadium. Hedecides to rent a telescope for $50 a week and charge his friends and classmates for a 30second "peep" at the game. He can act as a single price monopolist for renting out “peeps";for each person who uses takes a peep, it costs him $0.20 to clean the eyepiece. Thefollowing table illustrates the information that Jimmy has gathered about demand for thisservice. —.--IEiI-----IMIEEIIEIIEIIEIIEI “mm-M a. For each price in the table above, calculate the total revenue from selling peeps and themarginal revenue per peep. (4 marks) b. At what quantity will Jimmy’s profit be maximized? What price will he charge? Whatwill be his total profit? (4 marks) c. Jimmy’s landlady complains about all the visitors coming into the building and tellsJimmy to stop selling peeps; Jimmy finds out, though, that if he gives her $0.20 perpeep she’ll stop complaining. What effect does this bribe have on Jimmy’s marginalcost per peep? What is the new profit-maximizing quantity of peeps? What impactdoes this bribe have on Jimmy’s total profit? (4 marks)
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