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Question: A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by DD in the figure below. There are 50 nighttime buyers, all of whom have identical demands given by DN in the figure below. The firm's variable costs are constant (SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit. Picture Suppose the marketing director ignores the nighttime market and wishes to extract all consumer surplus from the daytime buyers. By setting the optimal access charge and user fee, the firm will earn __________ of profit on each one of the 50 daytime buyers.
over the past 12 months the four winds novelty company firm has recorded its internet sales equals monthly output
This assignment will allow you to begin to consider channel and persuasion. E-mail can be hard to interpret; what is it exactly your boss wants? People now tend to see a phone call as an intrusion.
Suppose Debbie purchases only hamburgers. Assume that her marginal utility is always positive and diminishing. Draw a graph with total utility on the vertical axis and the number of hamburgers on the horizontal axis. Explain how you would determin..
Within the framework of production possibilities curve, discuss the pros and cons of alternative choice mechanisms with respect to the determination of price and output levels in an economy
Using the data in the table and on your graph, explain the profit maximizing, or loss minimizing level of output. Define a normal profit and an economic profit. Are normal profits being earned in this example?
Tasty manufacturer is planning to build a new office building production facility. The facility can be built in at reduced capacity now for $40 million and can be expanded 15 years later for an additional $35 million. An alternative is to construct t..
One of the factors that your exam is being graded on is how well you can determine and identify the key issues and explain how to manage these issues.
a permanent endowment at the university of alabama is to award scholarships to engineering students. the awards are to
The index of consumer expectations dropped much more sharply before the brief and mild 1980 recession than it did before the much more severe and prolonged.
Why do nations trade? What is meant by the concept of "Comparative Advantage"? Could a nation be better off economically, if it practiced an isolation policy?
Assuming you could not get the Pink ticket for free what is your (net) opportunity cost of your seeing Lady Gaga?
Macropoland is currently experiencing a recession--consumption and investment are very sluggish, and unemployment is quite high at 9%. Currently, inflation.
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