A company is considering building a bridge across a river A company is considering building a bridge 1 answer below »

A company is considering building a bridge across a river
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain.
Number of Crossings,
Price per Crossing in Thousands
$8……….. 0
7……….. 100
6……….. 200
5……….. 300
4……….. 400
3……….. 500
2……….. 600
1……….. 700
0……….. 800
The following table shows the company’s anticipated demand over the lifetime of the bridge:
a. If the company were to build the bridge, what would be its profit-maximizing price? Would that be the efficient level of output? Why or why not?
b. If the company is interested in maximizing profit, should it build the bridge? What would be its profit or loss?
c. If the government were to build the bridge, what price should it charge?
d. Should the government build the bridge? Explain

A company is considering building a bridge across a river

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now
 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15