Define profit-maximizing price when no price discrimination

Reference no: EM13241909

There are two equally populated groups of consumers, A and B. Assum each consumer can consume at most 2 units. Their willingness to pay are

A. 10 for the first unit, 5 for the second unit

B. 8 for the first unit, 6 for the second unit

Assume they they buy if price exactly equals to willingness to pay. The monopolist can produce the good at a constant marginal cost 3.

a. describe efficient allocation of the good

b. describe the profit-maximizing price when no price discrimination is allowed.

c. describe the profit maximizing 1st degree price discrimination strategy

d. describe the profit maximizing 2nd degree price discrimination strategy

e. describe the profit maximizing 3rd degree price discrimination strategy

Reference no: EM13241909

Questions Cloud

Describe effect of decrease in the cost of the labor input : With a series of benefit cuts across many firms throughout the economy, some economists argue that nominal wage rates, a major cost of inputs for firms, have been decreasing.

Explain a mammoth skeleton has a carbon-14 decay rate : A mammoth skeleton has a carbon-14 decay rate of 0.46 disintegratioins per minute per gram of carbon (0.46 dis/min*g C)

By how much will unemployment change after policy taken : you have been appointed as chair of Economic Advisors in Fantasyland. Income is currently $600,000, unemployment is 5 percent, and there are signs of coming inflation. You rely on a research assistant for specific numbers.

Define what is the purity of the complex : If 27.0 mL of 0.0200 M KMnO4 were required to titrate a 0.425 g sample of K3[Fe(C2O4)3] * 3H2O, what is the % purity of the complex

Define profit-maximizing price when no price discrimination : Assume they they buy if price exactly equals to willingness to pay. The monopolist can produce the good at a constant marginal cost 3. a. describe efficient allocation of the good b. describe the profit-maximizing price when no price discrimination ..

Compute the average and the standard deviation : Titration of an oxalate sample gave the following percentages of percent oxalate: 12.28%, 12.54%, and 12.24%. Calculate the average and the standard deviation

Assume that the low-calorie frozen microwavable food company : Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.

Is the industry in the long run competitive equilibrium : A firm is a purely competitive industry is currently producing 1000 units per day as a total cost of $600. If the firm produces 1200 units per day its total cost is $600. If the firm produces 1000 units per day its total cost would be $400.

Determine the magnitude of the average force : A projectile of mass 0.950 kg is shot straight up with an initial speed of 24.0 m/s, If the projectile rises to a maximum height of only 19.7 m, determine the magnitude of the average force due to air resistance

User Account

All Pages