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A typical customer who buys from a firm has a demand given by P = 90 - 3 Q. The firm has a constant marginal cost MC = $18 and no fixed cost. It currently uses a uniform pricing strategy (i.e., it charges a single price for all the units it sells), but it is contemplating to switch to the following block pricing strategy: “Buy the first 7 units at a price of $75 per unit, and any subsequent unit at a price of $54 per unit.” Compared with uniform pricing, profits per customer under the above block pricing are
a) $285 greater under block pricing
b) $147 greater under block pricing
c) $105 greater under block pricing
d) lower under block pricing than under uniform pricing
The distribution of family income is preferable than the distribution of household income because. The long-run average-total-cost curve does not connect the minimum points of each of the short-run average-total-cost curves. The long-run average-tota..
"Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree? The question seems to be suggesting that both should be used at the same time. Can you find reasons to ..
Compute point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points.
Explain why income taxes were raised 200% (from 1.5, 4, and 25 percent to 5, 8, and 63 percent) by the Revenue Act of 1932, and describe the effects.
q1. if the equilibrium level of aggregate expenditure is 80 billion as well as there is a reduction in consumption of 2
If a monopolist can represent the demand of its product as Q = 100 - P and its marginal revenue from sales as MR = 100 - 2Q, where Q is the quantity of production and sales and P is a uniform price charged to each customer, and has a constant margina..
You arrange for a legal document to be written. You believe there is a 50% prior probability that the document is correctly written. You then go to 10 lawyers, the probability of seeing an expert lawyer is the same as the probability of seeing a novi..
how will Kristine s consumption pattern and welfare be affected
On October 4, 1996, Tenet Healthcare Corporation, the second-largest hospital company in the United States at that time, announced that it would buy Ornda Healthcorp.† what would Tenet Corporation consider to be the 15-year present value of Ornda Hea..
Why would an entrepreneur choose C corporation status instead of one of the flow-through entity types? Include characteristics of formation, business activity, and distributions in your response. Discuss non-tax reasons as well as tax reasons.
Suppose that classical least squares assumptions apply and the true value of intercept term or is 0 in following model: yi=alpha + beta xi + epsilon i, Now estimate this model with and without an intercept term and compare the variance of the est..
Evaluate how sale of novels would change during a period of rising incomes. Assess probable impact if competing publishers raise their costs.
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