ECON, Business Economics

Assignment Help:
1. A firm has segmented its market into the following demand functions:

P1 = 500 – 50Q P2 = 500 – 20Q with a cost function: MC=AC =20

a. Determine the profit maximizing price and quantity and corresponding economic profits if the firm charges all customers the same price.
b. Determine the profit maximizing prices and quantities and corresponding economic profits if it practices third-degree price discrimination.
c. What are the conditions necessary for price discrimination to succeed?

Related Discussions:- ECON

Payback method to analyse business , The managing director of Christine plc...

The managing director of Christine plc, a company which specialises in acquiring small businesses, has considered the following potential investments. Only one of these investments

BUSINESS CYCLES, FOUR CAUSES OF SLOW OF SOUTH AFRICA ECONOMY

FOUR CAUSES OF SLOW OF SOUTH AFRICA ECONOMY

Cost of production of a firm in the long run, Question 1: (a) Explain,...

Question 1: (a) Explain, giving examples, the law of diminishing returns, clearly bringing out the relationship between cost curves and product curves in the short run. (

Prepare a schedule of budgeted and cash budget, Question: Yamba Home P...

Question: Yamba Home Products is just beginning its fourth quarter, in which peak sales occur. The company has requested a $12,000, 90-day loan from its bank to help meet cash

Global finance crisis, Australia has emerged from the Global Finance Crisis...

Australia has emerged from the Global Finance Crisis (GFC) as "the strongest economy in the developed world" (Editorial, The Australian, 11 December 2009). The economic editor of T

Agriculture economics, A1. Given the following production function Level of...

A1. Given the following production function Level of fertilizer Level of maize 0 0 1 44.9 2 83.6 3 110.1 4 127.3 5 136.9 6 139.9 7 137.1 8 129.2 a) Calculate the APP, MPP and elas

Determine what is the quality of money, The economy of Cotai contains 2000 ...

The economy of Cotai contains 2000 $1 bills. (a) If people hold all money as currency, what is the quantity of money? (b) If people hold all money as demand deposits and bank

Long-run average cost curve, Why might the point at which the long-run aver...

Why might the point at which the long-run average cost curve levels out change over long periods of time? include a diagram.

Location, advantages of government grants

advantages of government grants

Write Your Message!

Captcha
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