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?

Comprehend the principles relating to the enforceability of covenants not to compete within business sale agreements.

Discriminate between valid and invalid exculpatory clauses.

Comprehend the legal consequences of unconscionable contracts and clauses.

Identify exceptions to the rule against the enforcement of illegal contracts.

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Definitions:

Fetoscopy

A medical procedure involving the insertion of a fetoscope into the uterus to examine the fetus for diagnostic purposes.

Amniotic Sac

The fluid-filled sac that surrounds and protects the fetus in the womb during pregnancy.

Premature Labor

A condition in which labor begins before 37 weeks of pregnancy, potentially leading to risks for the baby.

Fetal Death

The death of a fetus at any stage of pregnancy from causes related to or aggravated by the pregnancy or its management, but not from accidental or incidental causes.