User Account

All Pages

Calculate the price elasticity of demand for type b

Assignment Help Managerial Economics
Reference no: EM13974757

Suppose there are two types of consumers. The demand for each type of consumer is given by:

Type A: Q = 100  2P
Type B: Q = 80  4P
Suppose a monopolist has constant marginal cost = 6. Also, for parts a-b, assume that the monopolist is unable to distinguish between the two types of consumers.

(a) What price should the monopolist charge?

(b) How much profit will this monopolist make?

(c) What price should the monopolist charge to each type of consumer?

(d) How much total profit does the price discriminating monopolist make?

(e) Calculate the price elasticity of demand for Type A consumers at the monopolist's profit maximizing price.

(f) Calculate the price elasticity of demand for Type B consumers at the monopolist's profit maximizing price.

Reference no: EM13974757

Questions Cloud

Describe the principles of security management : Describe how you plan to instill a secure mentality into an organization, including a tie into the project management discussion about when security concepts should be introduced into the project lifestyle.
Important aspect to companies : The first discussion is all about working capital. Working capital is the money needed to fund the normal, day to day operations of your business.
Examine the budgetary constraints : Examine the budgetary constraints that correctional officials work with as they operate correctional facilities. Determine the major trade-offs made between the policy for proper funding and the practice of proper funding to prevent recidivism. Pr..
Company interest expense for the year : Income Statement (EBIT) was $6 million, and the company pays a 40 percent tax rate. What was the company's interest expense for the year? [Hint: Divide $3 million by (1 - T) = 0.6 to find taxable income.]
Calculate the price elasticity of demand for type b : Calculate the price elasticity of demand for Type B consumers at the monopolist's profit maximizing price.
Interest on outstanding balances paid monthly : As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank at a nominal 6%, monthly compounding.
Prove correctness of the given algorithm : Prove correctness of the following algorithm which is used to determine if a list numbers is a part of other list of numbers. For example for inputs List1=[1,2,3] and List2=[5,6,1,7,2,5,6,3], the algorithm will return "List1 is part of List2" and ..
Account balances at december : The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, the end of its fiscal year: cash, $19,000; accounts receivable, $14,000; inventories, $28,000; equipment (net), $83,000; accounts payable, $17..
Assessing risk over the past several years : How effective do you think quantitative tools have been at measuring and assessing risk over the past several years? Why?

Reviews

Write a Review

Managerial Economics Questions & Answers

  Find information on aggregate income

I have been asked to find information on aggregate income. However, I also need to find information on labour and wealth income dis-aggregated.

  The course of the business cycle

Explain how the current account of the balance of payments is likely to vary with the course of the business cycle.

  Inverse demand and supply functions

Q1. Consider a market characterized by the following inverse demand and supply functions:

  Compromise between purely discretionary policy and adhering

Is there a compromise between purely discretionary policy and adhering to strict targets?

  What leasing price would have to be charged

How many customers will be needed in Year 0 to break even, measured by the present worth = 0, if the lease price per unit is $1,245 - what leasing price would have to be charged to achieve a present worth of $1 million at a quantity of 10,000 cu..

  Discuss the pluses and minuses of microsofts policy relative

Its central staff has decision rights to ensure a standard presentation is presented in all editions. Discuss the pluses and minuses of Microsoft's policy relative to Encylopedia Britannica's.

  Examine one real-world event or recent news story

Examine one real-world event or recent news story from the last 12 months that you believe demonstrates the topics covered in this course. Predict how this event ties to the new learning in the course. Formulate an opinion and defend your position ab..

  Compute expected dollar return

Assume that a person won Florida lottery and was offered a choice of 2-prizes: $500,000 or a coin-toss gamble in which he or she would get $1 million.

  Market structure and pricing decision applied problems

Market Structure and Pricing Decision Applied Problems, BUS 640 Managerial Economic,

  Analyze the elasticity of demand for tobacco products

From the E-Activity, if you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products.  Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential.

  Vision statement and explain why it is transformational

Explain how the vision that you have developed can be used to guide and motivate product development teams. How will it inspire others team leaders and team members?

  The exchange rate diverge from the purchasing-power parity

For what reasons might the exchange rate diverge from the purchasing-power parity rate over the longer term?

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd