If firm uses strategy each customer buy how much units

Assignment Help Econometrics
Reference no: EM13224163

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 5 units at a price of $75 per unit, and any subsequent unit at a price of $54 per unit." If the firm uses this pricing strategy, then each customer buy how much units?

Reference no: EM13224163

Questions Cloud

What is the estimate of the mean profit : what is the estimate of the mean profit associated with the production quantity of 60,000 dolls?
Complete all of the steps of the accounting cycle : Complete all of the steps of the accounting cycle.
What are the advantages of emergent strategies : What are the advantages of emergent strategies? Are they particularly appropriate and effective in certain kinds of organizations? In certain kinds of environmental and competitive conditions? In tackling certain kinds of problems?
How do disruptive strategies impact middle managers : Is it sometimes appropriate - even necessary - to design strategies with the intention of disrupting organizations? Can implementing disruptive strategies constitute a strategy for organizational change? How do disruptive strategies impact middle ..
If firm uses strategy each customer buy how much units : 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)..
Which of the following leadership theories focuses : Which of the following leadership theories focuses on the personal relationships that leaders develop with followers?
Write a paper on the walmart supply chain : Write a paper on the WalMart Supply Chain. You can email it to me when you are done. WalMart has one of the best supply chains in the world and it is one of the main reasons they are so successful.
Define what volume of h2 gas : What volume of H2 gas (in L ), measured at 742 mmHg and 84C, is required to synthesize 25.8g of CH3OH ?
Explain what are the profit maximizing prices : The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets of out-of-town skiers is given by Qo = 600 - 10 Po, while the demand for ski tickets of local skiers is given by Ql = 600 - 20 Pl .

Reviews

Write a Review

Econometrics Questions & Answers

  What money growth rate should it keep to implement policy

Suppose the Bank of Canada wants to implement a policy that would cause the Canadian dollar to depreciate against the British pound. Which of the following money growth rates will achieve this objective.

  What is the resulting equilibrium price of new housing

Assume that the market price of new housing is $100,000 in Las Vegas, and local government officials modify regulations which increase the cost of building new homes. The higher costs cause supply to drop by 18%

  How to verify all of the prices and quantities

questions are even asking. Would you be able to explain what they are asking as well as provide me with a solution I'm more interested in LEARNING this than just getting the answer, so I really need help with the explanation of how you come up wit..

  What is the marginal cost per bushel of apples

how many bushels of apples should the farmer produce? If the government imposes a tax on the sellers which results in the sellers receiving $1 less per bushel sold, what amount of apples should the farmer choose to produce?

  How to calculate the exact discounted values involved

Suppose that average earnings by age group for bachelor's and Master's degree holders were as follows: Age group bachelor's Master's 23-24 $35,000 -- 25-29 40,000 $48,000 30-34 44,000 56,000 Suppose further that tuition and fees for the Master's p..

  What is the price of leisure for the players

Assume the players are monopolists, but the teams are competitive in the labor market. Calculate the marginal revenue product of labor (MRPL) and find the equilibrium wage and quantity of labor.Find the equilibrium wage and quantity of labor.

  Should a risk neutral firm invest or not

The launch is risky because the demand could turn out to be either low or high. If the demand is high, the investment would give a return of $30 million, and if the demand is low, the return would be 0.

  What is the current market value of the bond

suppose you purchase a corporate bond with a 0-year maturity, a $1000 par value, a 10% coupon rate, and semiannual interest payments. This means that you receive a $50 interest payment at the end of each six-month period for 10 years (20 times).

  Would max be as well off as he was before the tax

A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..

  How would inflation be if real income growth were higher

Suppose a country has a money demand function (Md/P) = kY where k is a constant parameter. The money supply grows by 12 percent per year and real income grows by 4 percent per year. What is the inflation rate

  What is ajaxs profit per camera in the digital camera market

Knockoff Inc. produces what it regards as a low-quality digital camera. However, because the market is so new, reputations for quality have not yet developed, and consumers cannot tell the quality difference between an Ajax digital and a Knockoff ..

  How much should they invest now compounded daily

a couple just had a baby. How much should they invest now at 5.2% compounded daily in order to have $30,000 for the child's education 17 years from now Compute the answer to the nearest dollar.

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