Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A firm produces two kinds of products: Word and Excel. Both products are made by a monopolist. Four consumers are considering buying these products. The first consumer's willingness-to-pay (WTP) for Word is 10, and her WTP for Excel is 1. The second consumer's WTP for Word is 8, and her WTP for Excel is 5. The third consumer's WTP for Word is 5, and her WTP for Excel is 8. Lastly, the fourth consumer's WTP for Word is 1, and her WTP for Excel is 10. Assume that marginal costs for both products are zero.
(1) Suppose that both products need to be sold separately. What should be the optimal price for each product? Also, compute the firm's profit under the optimal a la carte pricing.
(2) Now suppose that bundling is the only option. In other words, the monopolist only sells two products together. What should be the optimal price for the bundle? Also, compute the firm's profit under the optimal bundling.
(3) The firm can use both bundling and a la carte pricing, that is, mixed bundling. What should be the optimal mixed bundling prices? Compute the firm's profit under the optimal mixed bundling as well.
One interesting facet of delivery we looked at was ambulatory services; we saw how ambulatory care went from being provided outside the hospital setting, to becoming a service within the hospital, and now is moving outside the hospital once again. W..
The price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. Based on these results, give an economic argument for raising transit fares. What political arguments might local governments and transit authorit..
If the interest rates are zero bound, compare the effect of an expansionary monetary and fiscal policy. Draw graphs to show these effects and also explain in words. (Hint: Don’t consider negative interest rates. If interest rate is zero, will monetar..
clearly show on youre graph the old equlibrium price and quantity. Can you tell for certain whether the new equlibrium price will be higher or lower than the old equilibrium price?briefly explain.
For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 10 percent annually. Computer programmers cost $..
You must also address briefly any social and/or cultural factors and their implications.
In this week's readings from The Travels of a T-Shirt in the Global Economy, the author describes the concept of government subsidies as "tools to help assure the financial success of cotton farmers in America."
Describe key areas of the selected company's code of conduct that are of significant importance to the business, and explain why - Explain the key steps that the company should take to ensure that employees follow the code of conduct.
Dynamism creates opportunity as well as constraints. Identify the most promising facing companies from advanced markets. Then do the same for firms from developing markets. How are they similar? How are they different?
Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.
Given this information, optimize your human resource and production decision. Do you anticipate earning a profit or a loss? Explain carefully.
What is unique about the labour market compared to other product markets
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd