Discriminate price in the markets

Assignment Help Business Economics
Reference no: EM132170680

Suppose that a monopolist faces two markets with demand curves

MKT1: q1: 100-p1

MKT2: q2: 100-2p2

Assume the monopolist marginal cost is constant at $20 per unit. Find the following price:

  1. If it can discriminate price in the markets.
  2. If it cannot discriminate.

Reference no: EM132170680

Questions Cloud

Determining the natural monopoly : If the government forces the natural monopolist to produce a level of output where P = MC. What is the problem with such a policy?
Create a while loop that will start deducting each purchase : In this problem you are going to keep buying items until you reach your maximum credit limit. You will ask the user for their credit limit first.
What happens to total tax revenue collected : Owing to the positive IS shock, what happens to total tax revenue collected?
Increase total revenues for firm : 3. What could Jane do to increase total revenues for her firm if she had no control over costs (e.g., reducing costs is not an option)?
Discriminate price in the markets : Assume the monopolist marginal cost is constant at $20 per unit. Find the following price:
What is a definition of externalities : What is a definition of externalities. How does the presence of an externality distort a normal free market?
Discuss the different stops used to prepare flexible budget : GAC4009 - MANAGEMENT ACCOUNTING - Prepare & interpret a range of budgets and variances as pan of budgetary control
Price of a firm fixed input rises : Suppose the price of a firm's fixed input rises. If it decides to maintain its production level, its average costs are lower in the long-run than they are in th
Increasing marginal cost over range of output : If it must pay all workers the same wage, the firm experiences increasing marginal cost over this range of output.

Reviews

Write a Review

Business Economics Questions & Answers

  Determine the average cost

(a) Determine the average cost, average variable cost, average fixed cost, and marginal cost of each firm.

  Marginal revenue product and the marginal cost

Define the marginal revenue product (MRPL ) and the marginal cost (MCL ) of labor. Explain why the condition MRPL = MCL is necessary for profit maximization.

  Calculate the price elasticity of demand for each group

The makers of academic books find that when they raise the price of the average book from $60 to $95, quantity demanded among students drops from 100 to 85. Among casual readers, quantity demanded drops from 80 to 35. Calculate the price elasticity o..

  Country is considering increasing the minimum hourly wages

The government of a country is considering increasing the minimum hourly wages by 10 percent. Economists argue that this is going to have a negative effect on employment in the long term. Which of the? following, if? true, would strengthen the? econo..

  Major newspaper that attempts to analyze statistical data

Find an article in a major newspaper that attempts to analyze statistical data. Summarize it , and relate what you understand about the interpretation. Do you agree with the analysis as presented in the article?

  Effect sequence in response to expansionary monetary policy

Identify the correct cause-and-effect sequence in response to an expansionary monetary policy move by the Fed.

  Vertical distance between effective-nominal demand curves

For a given quantity demanded, the vertical distance between the effective and nominal demand curves shows the amount paid by the individual out-of-pocket and the amount paid by the insurer as per the agreed coinsurance rate. What would happen to the..

  How can companies plan their pricing strategies

How can companies plan their pricing strategies? Explain in detail or give an example. What is “temporal price discrimination”? Give an example of it. Explain the case of Coca-Cola’s pricing discrimination scheme that occurred in the past and had a p..

  Imperfect competitor is currently producing at output

An imperfect competitor is currently producing at an output level where MR = 0. As a consultant to this business, state what they should do as far as output quantity and price (increase, decreases, or maintain) in order to maximize their profit. Moti..

  Nash equilibrium is also a perfect equilibrium

Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one-shot to reach an agreement.

  How might increasing payroll tax rates

How might increasing payroll tax rates affect young individuals' decisions about investing in their human capital by pursuing higher education

  Problem set one1-price-elasticity

problem set one1-price-elasticity of

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