For a Parking Garage of Fixed Capacity, the Owner Sets

question 33

Multiple Choice

For a parking garage of fixed capacity, the owner sets different parking rates for cars that are parked for less than 24 hours (short-term) and for those that are parked for more than 24 hours (long-term) . To maximize revenue, the operator should set prices and target the number of places for each segment such that:

• A) the marginal revenues from the segments are equal.
• B) the total revenues from each of the segments are equal.
• C) the average revenues from the segments are equal.
• D) the long-term consumers pay a higher hourly price.
• E) the price paid by both short-term and long-term consumers is equal.

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Definitions:

Deposit

A deposit is a sum of money paid into a bank account or paid as part of a financial transaction as a pledge or part-payment, often refundable under specific conditions.

Agreement

A mutual understanding or arrangement between two or more parties regarding their rights and obligations.

Writing

The act or skill of composing text for various purposes, such as communication, documentation, and expression of ideas.

Enforceable

describes a contract or covenant that can be legally imposed or carried out through legal action.