Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider a monopolist facing two customer groups. The first has demand p1 = 10 ! q1/2 and the second has demand p2 = 20 ! q2. The firm has marginal cost MC(q) = q, where q = q1 + q2 is the total amount sold.
(a) Suppose it can separate customers into the two groups (third degree price discrimination), each with its own price per unit. How many units does it sell to each group? At what prices?
(b) Suppose instead of MC(q) = q , the firm had exactly 4 units to sell to the two groups (and no costs to worry about; the 4 units are already produced). How should it split the units between the goods?
(c) Suppose it could first degree price discriminate and charge the full willingness to pay for every unit. How many units does it sell to each group? (Back to MC(q) = q = q1 + q2.) (d) Suppose a regulator could set one per unit price for everyone and knows the demand and marginal cost curves. What price should it set for the two groups to minimize deadweight loss?
Consider a firm in a perfectly competitive market with total costs given by TC = Q3 – 15Q2 + 100Q + 30 a.) What is this firm’s marginal cost function? Over what range of output are the firm’s marginal costs decreasing? Increasing? b.) Suppose that th..
One of the demands of railroad in recent labor negotiations has been to eliminate the caboose from trains, cutting train crews from four to three. The unions have resisted this because of the loss of jobs. Are the unions right? Would removing the cab..
The licorice industry is competitive. The current market price of a string of licorice is $0.40. At this price, a firm decides to produce 2 million strings of licorice this month.
What is the own price elasticity of demand when price is $100? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $100? What price should you charge in order to maximize the fir..
How do you think each of the following affected the world price of oil? a) A major war began in the oil-rich Middle East. b) The Alaskin oil pipeline was completed. c) The ceiling on the price of oil was removed. d) Oil was discovered in the North Se..
In the early stage of her administration, Fed Chair Janet Yellen focused on maintaining a monetary policy of low interest rates to continue the Fed’s efforts to stimulate the economy. However, the article assigned indicates she faces some longer-term..
Explain how making coupons for a bakery available on a mobile phone can help increase sales through this new marketing available on smart phones.
q.peggy-sues cookies are the best in the world or so i hear. she has been offered a job by cookie monster inc. to come
Recall the second price auction game. Now suppose that there are three players, 1, 2, and 3, bidding for a single object in a second price auction. All three players value the object at 10, i.e., v1 = v2 = v3 = 10. For i = 1, 2, 3, let bi denote play..
According to the figure, because of the imposition of this per-bag tax, the price buyers now pay and the price sellers get to keep (net) equals: A) $28 and $48, respectively B) $39 and $28, respectively C) $48 and $28, respectively D) $39 and $39, re..
Theories about child rearing go back thousands of years, yet developmental psychology is only about a century old. How has psychology been impacted by the philosophical and religious theories of child rearing.
Explain how much will your firm's total revenues (revenue from both products) change if you increase the price of good X by 1 percent.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd