FlyExclusive is a company that offers memberships for access…

FlyExclusive is a company that offers memberships for access to chartered private jets. They are trying to decide the optimal price for their membership fee and are considering using a two-part tariff. They estimate consumer demand to be: Q = 100 – 0.1P (or P = 1000 – 10Q), where Q is the number of charted jet flights per year and P is the price per flight. If the marginal cost of serving each customer is $100 per flight, what is the optimal two-part tariff that FlyExclusive should charge?

Betty White’s house in Carmel, CA is being auctioned off in…

Betty White’s house in Carmel, CA is being auctioned off in a second-price sealed bid auction. There are 5 mega-fans taking part in the auction. They each have a private value listed below.     All bidders, except Bidder #4, have taken Business Microeconomics and understand auction theory. As such, these bidders will submit bids using their optimal strategies, while Bidder #4 submits a bid of $12.5 million. Which bidder will win the auction and what will be the amount paid?

FlyExclusive is a company that offers memberships for access…

FlyExclusive is a company that offers memberships for access to chartered private jets. They are trying to decide the optimal price for their membership fee and are considering using a two-part tariff. They estimate consumer demand to be: Q = 200 – 0.1P (or P = 2000 – 10Q), where Q is the number of charted jet flights per year and P is the price per flight. If the marginal cost of serving each customer is $100 per flight, what is the optimal two-part tariff that FlyExclusive should charge?