Question

1. The J.T. Kirk Corp. has decided to offer the “Picard Bold Travelers Club” for the adventurous. It is a very exclusive club. If you join you will travel at the cargo price (Qu#2), but you must pay $20,000 annually. Mr. Worf loves travel and go to MMA tournaments. Mr. Worf’s annual demand function for teleportation is as follows:

Q = 20 – 0.008P

1. Will Mr. Worf choose to join the club? Explain.
2. (TRUE/FALSE) The HHI determines how high the price is relative to the monopoly price. Explain

Please show all work. Round to 3 decimals, please. thanks

Answer 1