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:

Individual Retirement Account

A financial tool used for saving towards retirement that offers tax advantages.