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Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $25 for a pair of Levis Jeans, and a low-end type customer that are willing to pay a price of $15 for the same pair of jeans. Your marginal costs are $13 per jeans. Your survey of your customers for jeans tells you that 60% of your customers are of the high end type and 40% are of the low end type.
(a) If you decided to price high, what would be your expected profits per unit.
(b) If you decided to price low, what would be your expected profits per unit?
(c) Which pricing will you choose, based on the expected pricing per unit.
the probability of damage between $10,000 and $25,000 to be.12 If the company wants to make a profit of $200 above the expected cots, what should be the price of the policy?
Complete the following table by indicating whether or not each scenario is an example of price discrimination. Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price.
q.consider two firms each of which is issued three marketable pollution permits. for firm h the marginal cost of
Which of the following is not an example of a process designed to combat moral hazard problems?
q1. demand for a product of a monopoly is given as q100-2p.a graph demand and marginal revenue of the firm.b find the
q1. a companys cash sales for the month are 200000 and its accounts receivable payments for the month are 100000. what
When the competition is intense and the environment is changing rapidly, it is especially important to
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Imagine how managerial decisions may be easier or more difficult if there were no antitrust restrictions in the U.S. Provide an example to support your response.
Explain how much consumer surplus exists in this market. If a $2.00 excise tax is levied on this good what will happen to equilibrium price and quantity.
Can you detect any difficulties that the Federal Reserve System might encounter in implementing monetary policy.
Many universities allocate financial aid to undergraduate students on the basis of some measure of need. does this price reflect pure charity or price discrimination? if it reflects price discrimination do you think it lies closer to first degree dis..
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