Travelers Driving Through Gotham City Can Use a Freeway or the Cross

question 47

Essay

Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car at all other times. The weekly demand for using the tollway during rush hour is Q1 = 800 - 200P1 where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Q2 = 2000 - 1000P2. Gotham City's marginal cost of operating the tollway is MC = 0.02 + 0.001Q per car.
a. What are the marginal revenue curves associated with the two demand curves?
b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway?

Understand how to prepare a factory overhead cost variance report.

Understand how to prepare an income statement including variance analysis.

Understand the concept and purpose of budgets in organizations.

Recognize different types of budgeting procedures and their specific applications.

---

Definitions:

HRM

Human Resource Management, the strategic approach to managing a company's employees to foster a productive and satisfying work environment.

Strategic Change

The process of implementing significant adjustments in an organization's strategy to respond to internal or external shifts and improve performance.

Change Management Process

A systematic approach to dealing with the transition or transformation of an organization's goals, processes, or technologies.

Double-Loop Learning

Double-Loop Learning is a process wherein an organization or individual questions and modifies its objectives, strategies, or beliefs in response to the results of actions.