How much will you charge him for the of paper

Assignment Help Microeconomics
Reference no: EM13125134

In order to perform a certain printing job, John needs a printer and 100 units of (printing) paper.

Suppose that the value to John of completing this project is $1000, that is, if he completes the project he will receive a payment of $1000.  Suppose that after completing the job, the printer becomes obsolete.  Please answer the following questions:

a) Suppose that you are the only seller of paper in the market, and you know that John already has a printer, how much will you charge him for the (100 units of) paper?

b) Suppose that you know that John has just bought a printer for $800, how much will you charge him for the of paper?

c) Suppose that John does not own a printer and you are the only store in town that sells printers and paper, how much will you charge him for the paper and how much will you charge him for the printer?

d) Suppose that John can buy the paper on the market and the market price (for 100 units) is $50.  Suppose that you are the only store in town that sells printers, how much will you charge him for the printer in that case?

e) Suppose that you are the only one that sells printers but you don't sell paper. Suppose that there is another seller who is the only one that sells paper in the market.  Suppose that the order of moves is as follows:  First John comes to your store and you decide on the price to charge him for the printer. Then, after John has bought the printer he goes to the store that sells paper, and that store decides on the price to charge him for the paper (knowing that he has already bought the printer).  What is the highest price you can charge John for the printer in that case? Can you think of another pricing strategy for yourself that will give you a higher profit in this case?

f) In the context of the case described in part e above, someone has proposed that you use the following pricing strategy. The consumer will pay P when he buys the printer and he will be entitled to compensation in the amount of R, if he decides to return the printer, within a certain period of time, without actually using it.  If you decide to adopt this policy, what will be your profit maximizing P and R? What will be the price for the paper in this case?

In all the questions above assume that all the stores know that the value of the project to John is $1000.

Reference no: EM13125134

Previous Q& A

  Problem related to passive loss deduction

In the current year, Galaxy Corporation, a closely held C corporation that is not a personal service corporation, has $80,000 of passive losses, $60,000 of active business income, and $10,000 of portfolio income. How much of the passive loss may G..

  Explain how should dividends be distributed

In the company's first year of operation, no dividends were paid. During the second year they paid $50,000. Explain how should dividends be distributed?

  Create condience interval for current porportion of adults

The sameple you found that 114 of those adults sampled over the age of 24 smoke. Develop a 95% condience interval for the current porportion of adults over the age of 24 who smoke.

  Write a balanced equation for the reaction

Write a balanced equation for the reaction. What volume of 0.200M MnO4- solution is needed to titrate 22.5mL of a 0.350M solution of ethanol?

  Compute next years total expected fixed costs

Cinquante Company expects to sell 100,000 units of its product next year, which would generate total sales of $12 million. Management predicts that pretax net income for next year will be $3,000,000 and that the contribution margin per unit will b..

  Real property tax and person liability

The real property tax year in Adams County is the calendar year. The real property tax becomes a person liability of the owner of real property on January 1 in the current real property tax year 2009.

  Determine the numerical value of k

It is found for the reaction A + B > C that doubling the concentration of either A or B while keeping the other one constant quadruples the reaction rate. Write a rate law for the reaction

  Population mean weight is in range of sample mean

How many more sheep should be included in the sample if we want to say with 98% confidence that the population mean weight of the Jacob sheep is within 2.0 lb of the sample mean?

  Systems of equations-speed

Flying against the jetstream, a jet travels 4550km in 7 hours. Flying with the jetstream, the same jet travels 5340km in 6 hours. What is the speed of the jet in still air, and what is the speed of the jetstream?

  Explain how much setup cost will be allocated to each unit

Next year Power expects to perform 2,000 setups at a total cost of $ 4,000,000. Power plans to produce 800 units of product EP150, which will require two setups. Explain how much setup cost will be allocated to each unit of EP150 produced?

Reviews

Write a Review

 

Similar Q& A

  What are the firm economic profits

The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for this output is $40 per unit.

  Development of value and distribution theories

A development of value and distribution theories. Detailed analysis of the reactions of consuming and producing units

  Discussion on economics

Discuss why will voluntary actions, undertaken at individual level, be unlikely to bring about significant decrease in greenhouse gases such as CO(2)?

  How great employers select and take care of their talent

What can the company do to improve its overall compensation, benefits and professional development practices to enhance the staff's overall effectiveness in meeting the mission and needs of the company?

  Determine the optimal level of output

Find the quantity at which diminishing marginal returns set in and if the monopolist's goal is to maximize profits, and the monopolist charges all customers the same price, determine the optimal level of output.

  Investment objective and risk tolerance

Assume you are a broker at an investment advisory company. You and your client disagree on investment decisions he wants you to make decision on his behalf

  Airline price discrimination

Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Different customers pay varying prices for essentially the same coach seat because some passengers qualify for discounts and others do no..

  Consumer demand

Provide the Gilbert's choices of both Bordeaux and yogurt under the following circumstances (Consider each separately):

  Find best indifference curve and best affordable point

Assume you can only consume good X and Y out of abudget of $120. Your utility function is U = ln(X)+ln(Y ).

  Competitive market structure in long run equilibrium

Assume that all firms in a perfectly competitive market structure are in long run equilibrium. The demand for the company product rise.

  Describe what is meant by the gold standard

Describe what is meant by the Gold Standard and what were the problems with the gold standard?

  Market participants face identical prices

Describe why alternative efficient allocations may have different total levels, and different distributions, of wealth.

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!

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