Hi, can someone solve this Problem? Steve Win has purchased land ( an old landfi

Question

Hi, can someone solve this Problem?

Steve Win has purchased land ( an old landfill-from rags to riches) from the city of atlantic city in the marina section of the city. there are stories of a new casino building boom in atlantic city (mgeem is also talking about entering and gump is opening his fourth casino). some talk is circultating that win subdivide his new land purchase and perhaps three casino will e built on the site. suppose that win subdivides his land into two parcels. he builds on one site ans sells the other to another gambling entrepreneur. win estimates that the demand for gambling in the marina area of atlantic city ( After accounting for the presence of two existing casinos in he marina and adjusting for the rest of the casino in atlantic city) to be P= 750 - 5Q. Win of course does not sell the other parcel until his casino is built, thus he has a first mover advantage. win tital cost of producing gampling is TCw=20+40Qw+15.5Qw^2, wins rival is TCr=10+50Qr+20Qr^2. (Qw+Qr=Q). Would atlantic city have done better to sell the land as two seperate parcels rather than as a single parcel to win (given that win was going to subdivide, win and his rival could not collude and win did not have the ability to produce as a monopolist)? you may assume that win and his rival could have been cournot duopolist. if atlantic city could do better, show why and and by how much?   

Explanation / Answer

Atlantic city is at a crossroads again. With two new casinos holding their grand openings in these days, town is making headlines once more. The stakes, we are told, are high: whether or not these two new lodges succeed in attracting new visitors to the beleaguered seaside resort will make or ruin the town for the following new release.
However we've heard this music earlier than. I do know that i have. As I talk about in my e-book Boardwalk Playground: The Making, Unmaking, and Remaking of Atlantic metropolis, the city has a long historical past of defying the odds, if now not continuously beating them. Dropped at existence in 1854 by means of the Atlantic and Camden Railroad enterprise, Atlantic metropolis was at the start proposed as a high-end wellness motel like Cape could, but simpler to get to, because of the invaluable ACRC's train carrier.

But upscale didn't work for the brand new lodge. Ten years later, the town hadn't grown much, but the debut of first one, then two rival railroads brought ticket costs down enough to make Atlantic metropolis a fashionable vacation spot for much less wealthy vacationers. That used to be, pun intended, the ticket to success. By means of 1874, when Atlantic metropolis celebrated its twentieth anniversary, three enormous hotels, several dozen boarding residences, and 500 cottages had been serving the rising tide of visitors.

In those days, Atlantic city chief points of interest have been its affordability and convenience. That was enough to propel the city, by the time of its 1904 Golden Jubilee, to national fame as a trip vacation spot. With secure and occasionally high-priced accommodations, entertainment piers presenting the today's amusement as good as diversions like boxing cats, and the nation first boardwalk, Atlantic city used to be truly the sector Playground.

the great instances endured into the 1920s, when one more appeal tempted visitors to the shore: alcohol. With the appearance of Prohibition, Atlantic metropolis grew to be notorious as a position where the Volstead Act wasn't invariably enforced as strictly as the feds preferred. Should you've obvious Boardwalk Empire, you know the story. However the just right instances couldn't outrun the fine despair, which commencing in 1929 put a damper on the amusement travel that had made Atlantic city affluent.

In 1935, Mayor Charles White outlined a daring, three-pronged masterplan to save Atlantic metropolis: first, a element of the seaside reserved for cabanas catering to the tremendous-rich; then, an discipline with amusements and attractions for those much less good-off that might dethrone big apple's Coney Island; and subsequently, a gambling on line casino and racetrack that will turn out to be the Monte Carlo of the us. Town used to be simplest an economic downturn from its period of finest prosperity, but White already felt drastic motion used to be wanted. Too few listened, and the city chugged along with few essential alterations. Certainly, the Claridge inn, which opened in 1930, was once the last high-upward thrust built unless the on line casino technology.

Whites inspiration only bought new life after the town hit a new low. The 1964 Democratic national convention used to be a catastrophe for Atlantic metropolis, which had lobbied for years to host the political meeting. With the nomination of Lyndon Johnson a foregone conclusion, many journalists instead taken with how dilapidated, overpriced, and downright inhospitable town had end up. Over the subsequent decade, investment stopped, motels closed, and unemployment spiked.

Failure to preserve up with competing destinations had doomed Atlantic metropolis first expanded run as a amusement destination. Forty years on, Atlantic city started out to rally behind the idea of legalized gambling as a risk for a contemporary start. However even that didn't work the first time around. The 1974 referendum to legalize casinos statewide on neighborhood option failed, however Atlantic metropolis obtained a 2d chance in 1976 when New Jersey voters accepted a invoice that legalized casinos handiest in the city itself. Two years later, on may 26, 1978, inns global opened to crowds that stretched down the Boardwalk. Atlantic metropolis had reinvented itself because the casino capital of the East.

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