Question on first degree price discrimination

Assignment Help Macroeconomics

Reference no: EM1368351

Two consumers, Consumer 1 and Consumer 2, purchase the same product.
They have the following demand curves:

Q1 = 500 - 10 P and
Q2 = 500 - 20 P.

MC for the firm is $10.

(a) Compute the prices that should be charged to each customer if the seller is able to use first degree price discrimination.
(b) Is this a good strategy, or should the firm charge the same price to both customers?

Reference no: EM1368351

Questions Cloud

Problems on advanced computer networks : Identify and explain the events that can change the state of the system also determine the percent of time that this storage space will be adequate to accommodate newly arrived jobs-CS524 Advanced Computer Networks

Determine the expected number of empty bins : Assume that n balls are tossed into n bins, where each toss is independent and ball is equally likely to end up in any bin. Determine the expected number of empty bins?

Compute the npv and irr on properties : Compute the NPV and IRR on each of these properties individually and collectively assuming a discount rate of 15 percent

Determine the cost function : Manchester Foundry produced 45,000 tons of steel in March at a expenses of $1,150,000. In April, foundry produced 35,000 tons at a cost of $950,000.

Question on first degree price discrimination : Two consumers, Consumer 1 and 2, purchase the same product. Compute the prices that should be charged to each customer if the seller is able to use first degree price discrimination.

Determine independent variable and dependent variable : The length of the string is shortened by 5cm and the time is measured. Determine the independent variable? Determine the dependent variable? What must the controlled variables be?

Explain the sales force serves as a critical link : Explain The sales force serves as a critical link between a company and its customers

Design a two part tariff structure : The Rusty Anchor Bar has two-types of patrons: legal and underage drinkers. Even though it is illegal to allow entry to underage drinkers, there is no perfect way to identify underage drinkers since they often use fake identification card.

How does cpu interface with device to coordinate transfer : Direct memory access is used for high-speed I/O devices to avoid increasing the CPUÂ ´s execution load. How does CPU interface with device to coordinate transfer?

User Account

All Pages