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Question: (a) If the theatre were to implement a single-price strategy, what would be the price that maximizes total revenue? (b) [2 point] What would be the total revenue with perfect price discrimination (i.e., charging each segment their max WTP? (c) [4 points] Suppose that the firm is able to implement price discrimination and charge two different prices. They implement this by mailing out personalized invitations to the musical, where some customers receive the full ticket price (marketed as a "donor/sponsor" ticket price), and others receive a discounted price (marketed as a "community discount" ticket price). Assume that nobody at a lower price if they are WTP at the higher price. What would be the two prices that they should charge to maximize revenue? (d) [2 points] Explain how the price discrimination method described in part (c) follows the three "conditions" for successful price discrimination. What degree (first, second, or third) of price discrimination would this be and why?
How can uncertainties affect a project? What impact can an unfavourable uncertainty and a favourable uncertainty have on a project? Provide examples. Your response should be at least 200 words in length.
ECON5010 Economic Principles Assignment. The article should be related to tobacco. Only need to discuss the theories relevant to your article. Not allowed to choose an article from the supplied list on Blackboard. These are simply there to assist yo..
Does it seem reasonable to require that to be counted as unemployed, a person must be actively seeking work? Why not simply count those who do not have a job.
Pick an item you currenly own or wish you owned. List 5 fixed costs and 5 variable costs associated with owning and/or operating that item.
Suppose you manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 20%. The T-bill rate is 2%.
Models of Bond Pricing
explain what would cause the government purchases function to increase. will a change in social security spending
This is an interesting look at the trend of the "gig economy" in sourcing talent. Have you heard of this/experienced this? In what ways might you apply.
Explain the major risks involved in subcontractor contracts. Then, determine which of the risks involved holds the most risk to the subcontractor. Support your response with evidence or examples.
In recent years, the child tax credit has been increased in the united state. According to the basic principle of economics, how will the birth rate be affected by polices that reduce the taxes imposed on those with children?
What are the strengths of the CPI? What are the characteristics of these strengths? Same for weaknesses?
With the advertising budget of $40,000 (use 40), calculate the elasticity of advertising using Q you obtained in (b)? Interpret the result. What would happen to a constant term in a new reduced demand equation as a result an increase in advertisin..
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