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2nd-Degree Price Discrimination:
B) Note that the inverse demand functions for the high-valuation and low-valuation consumers in Figure 6.4 is p(q) = 16 − q and p(q) = 12 − q, respectively. If the monopolist could tell the two consumer types apart, what are the optimal block pricing contracts to oer these two groups?
C) If the monopolist cannot tell the two types apart and oers the contracts you found in part (b), how much surplus will the high types get from buying the low type contract?
D) If the monopolist takes the amount of money from (c) and gives a discount of that amount on the high-type package, the high types will buy the high-type package. How much money does the monopolist make in that case? Suppose that there are one consumer of each type to make your calculation easier.
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
q1. what are the advantages and disadvantages of austerity?q2. the government announces that it will privatize the main
A product earns an annual gross revenues of $90,000, the variable costs is $60. The fixed cost are $30,000 and the product is sell for $90. The quantity of product sold last year was $1000. The annual profit is most nearly:
If the rate of inflation in consumer prices is less than the rate of increase in a person's nominal income, that person's:
Why is efficiency lost at the boundaries as when substantially more of one good and very little of another is produced.
As your client is intent on investing aggressively, you will want to include the "beta" associated with each instrument relative to the S&P 500 Index.
When the government imposes a price floor above the market price, the result will be that:
A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?
Why does Apple tightly hold on to the development of iOS but outsources some of the design and all the manufacturing of iPhone handsets?
Sarah is awake for 100 hours per week. Using one diagram, show Sarah's budget constraints if she earns $6 per hour, $8 per hour, and $10 per hour. Now draw indifference curves such that Sarah's labor supply curve is upward sloping when the wage is be..
Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies. Which of the following actions would likely occur in one but no..
Both the buyers and sellers of good x, and the distribution of the benefits will be dependent on the elasticity of demand and the elasticity of supply.
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