subject
Business, 23.04.2021 16:30 smancilla2020

We are reviewing our Uber surge pricing strategy and we are thinking about enacting a bar-district surge price. We have studied demand characterizes of rides in major cities with well-known bar districts. Furthermore, our data analytics team has estimated the inverse demand P1(Q1) for rides to bar districts before 2am and the inverse demand P2(Q2) for rides from bar districts after 2am, as follows: Group 1: rides to bar districts before 2am: P1(Q1) = 5 – 0.01Q1
Group 2: rides from bar district after 2am: P2(Q2) = 10 – 0.01Q2

First, note that these price functions are in per mile terms. Also, keep in mind that our marginal costs per mile driven is $1. Please review optimal prices to charge to each group (using 3rd degree price discrimination) and let me know what the resulting profits would be. I am curious to see how much higher the "after 2am" bar-district surge price could go.

Also, in your review of customizing a higher price to people leaving bar-districts after 2am, let me know if you spot any legal/ethical risks. We have a good partnership with Mothers Against Drunk Driving (MADD), so I want to think about all the risks of this bar-district surge price.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 21:00, live4dramaoy0yf9
In addition to having a bachelor's degree in accounting, a certification will increase a tax accountant's job opportunities and allow them to file reports with the
Answers: 1
image
Business, 21.06.2019 23:00, kaylaunderwood470
Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u. s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.
Answers: 3
image
Business, 22.06.2019 07:30, yoyoho6218
Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.
Answers: 1
image
Business, 22.06.2019 18:10, salvadorperez26
Find the zeros of the polynomial 5 x square + 12 x + 7 by factorization method and verify the relation between zeros and coefficient of the polynomials
Answers: 1
You know the right answer?
We are reviewing our Uber surge pricing strategy and we are thinking about enacting a bar-district s...

Questions in other subjects: