Indirect cost discrimination scheme

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Reference no: EM139090

Q1. "Why might a company use an indirect cost discrimination scheme versus direct cost discrimination?"

Q2. Starting with the market demand and supple functions in Problem 1, Find out algebraically the new equilibrium cost and quantity of the demand function changes QD' = 12,000 - 1,000P or to QD" = 8,000 - 1,000P? The market supply function changes to QS* = -4,000 + 1,000P or to QS** = 1,000P.

Q3. Q1. Using the midpoint formula, explain how do I calculate the cost elasticity of demand for each segment of the demand function? Cost $18, $14, $10, $6, $2 and the quantity is 10, 30, 50, 70, and 90. A B} Elasticity = -4. Illustrate what would the rest of the Elasticity be?

Reference no: EM139090

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