At last assume type 1 buyers have price elasticity of

Assignment Help Microeconomics
Reference no: EM13391641

Suppose you have two types of customers. Type 1 customers typically purchases your firm's product in bundles of 100 units, while type 2 customers typically purchase less than 50 units. The cost of producing one unit is $1 plus packaging costs. Packaging costs $1 per unit for small orders, but only $10 for a bundle of 100 units. Finally, suppose type 1 buyers have a price elasticity of demand equal to -2, while type 2 buyers have an elasticity equal to -1.25. What price will you charge each type of buyer?

Reference no: EM13391641

Questions Cloud

Assume the firm produces electricity by burning coal : suppose your firm produces electricity by burning coal. currently it buys central appalachia 12500 btu per ton coal at
Rita jenkins president of the local chamber of commerce had : rita jenkins president of the local chamber of commerce had difficulty getting members to assist in running the
Allen co purchased land as a factory site for 80000 the : allen co. purchased land as a factory site for 80000. the process of tearing down two old buildings on the site and
Based on your readings or any additional research you may : a client comes to you thinking about starting a consulting business. your client is specifically interested in what
At last assume type 1 buyers have price elasticity of : suppose you have two types of customers. type 1 customers typically purchases your firms product in bundles of 100
Brands can play a number of specific roles in a companys : brands can play a number of specific roles within a companys brand portfolio. for example a is positioned with respect
What is a current liability from the perspective of a user : what is a current liability? from the perspective of a user of financial statements why do you believe current
Explain how to use a multiple linear regression model to : explain how to use a multiple linear regression model to estimate future sales. explain how the various independent
Examine different types of passenger transportation and the : for a tourism destination to be successful it must have something that attracts tourists to the area. for this

Reviews

Write a Review

Microeconomics Questions & Answers

  A classic example of this is typewriters and computers

Increases in structural unemployment can result from a recession but are more commonly associated with other changes, such as the development of new products that replace old products.

  Ways in which greater eductional oppotunity for young women

In many developing nations, young women have lower enrollment rates in secondary school than do young men. Describe several ways in which greater eductional oppotunities for young women could lead to faster economic growth in these countries

  Determine the initial equilibrium wage and labor utilization

Assume a market is characterized by a unionized and a non unionized sector. Both sections initially have supply given through Q=10,000+25w, and demand by Q=20,000-10w, where w is weekly salary.

  What are the corresponding prices and mucs

What are the efficient quantities for each of the two periods? What are the correspondingprices and MUCs?

  Firm will survive for only one production period

Continue to assume that your firm will survive for only one production period.

  Determine whether demand or supply changes or both

o Determine whether the change is an increase or a decrease. o Show the change in demand and/or supply on the graph of the initial equilibrium. (You will have one graph for each event.) Identify the result on the equilibrium price and quantity of den..

  Evaluate the financial performance of the company

The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is high enough so that the firm's total costs exceed its total revenue.

  How will combined tax-transfer policy affect demand n price

Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices

  Why the material prices are not expected to go up

Westside Plumbing and Heating Company is offered a contract for $100,000 to provide plumbing for a new building. The labor and equipment costs are calculated to be $60,000 for fulfilling the contract.

  Cost curves in perfect competition industry

Catfish farming in Louisiana is a perfect competition market. Hence, customers of catfish are getting their catfish at the minimum cost per unit of manufacturing catfish, and they are very happy.

  Will this firm produce in the short run

Fit-To-A-Tee, a "price-taking" T-Shirt design shop, has a schedule of total fixed costs, total variable costs, total costs and marginal cost

  Explain how to counter the union officials argument

In an effort to stop the migration of many of the automobile manufacturing facilities from Detroit area, Detroit's city council is considering passing a statute that would give investment tax credits to auto manufacturers.

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