Table 16-1
The table below shows the total demand for viewing a rare penguin species at a local reserve. Ecotour companies have to build discreet viewing hides for tourists to view the penguins. Each ecotour company has to pay a fixed fee of $10 000 for the right to build on the reserve. Assume that hides can be supplied to tourists at zero marginal cost. Tickets are sold to tourists to use the viewing hides.
Any firm can change tickets by steps of 1000 only. Prices for missing quantities are the exact midpoint between two adjacent prices.
-Refer to Table 16-1. Assume that there are two profit-maximising ecotourist companies operating in this market. Further assume that they are not able to collude on price and quantity of the tickets they sell. How many tickets will be by each firms when this market reaches a Nash equilibrium?
Definitions:
Photography Equipment
Includes cameras, lenses, tripods, lighting, and other accessories used for capturing photos.
Stockholders' Equity
The residual interest in the assets of a corporation after all liabilities have been deducted, often referred to as shareholder's equity or owners' equity.
Accounts Receivable
Unpaid amounts by customers for products or services they have obtained from a company.
Customer Payments
Funds received from customers as payment for goods or services provided.
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