What are firms profits if charged for product x and y

Assignment Help Econometrics

Reference no: EM13245314

You are the manager of a firm that produces X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. in particular, you know there are three types of consumers ( 1,000 of each type) with the following valuations for the two products:

Consumer Type Product x Product Y

1 $ 60 $50
2 $ 50 $ 125
3 $ 25 $ 140

a. What are your firm's profits if you charge $25 for product X and $ 50 for product Y?
b. What are your profits if you charge $60 for product X and $140 for product Y?
c. What are your profits if you charge $110 for a bundle containing one unit of product X and one unit of product Y?
d. What are your firm's profits if you charge $175 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of $60 for product X and $140 for product Y?

Reference no: EM13245314

Questions Cloud

Where will the price settle in the long run : 1. How do you know that the firm represented in the graph above is a purely competitive firm 2. To maximize profits, this firm will produce at what output level (one letter) 3. Explain why this MR=MC position is the profit-maximizing position for any..

What is the velocity at the peak of flight : A golf ball is hit on a 7.2m tall hill at 23m/s and 30° above the horizontal, what is its velocity at the peak of its flight

How to calculate the new molarity : what is the chemical calculation to figure out the following: calculate the new molarity if the following dilution is made (assuming the volumes are additive): 25.0 mL of water is added to 10.0 mL of 0.251 M CaCl2 solution.

Essay describing these core values : At the core of every society is a set of values. write and essay describing these core values and how they came about in Western society, middle eastern society, and chinese society.

What are firms profits if charged for product x and y : You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. in particular, you know there are three types of consumers ( 1,000 of each type) w..

Christian and muslim experience of the cursade : How do Christian and Muslim understanding and experience of the Cursade compare and contrast?

Determined that the outbreak was caused by ice cream : Determined that the outbreak was caused by ice cream from one company. They sampled 9 production runs and found the level of Salmonella

Compute the number of moles of each ion : what is the chemical calculation to figure out the following: calculate the number of moles of each ion present in the following solution: 10.2 mL of 0.451 M AlCl3 solution.

How far away is the mountain that reflected the sound wave : A group of hikers hears an echo 1.50 s after shouting. If the temperature is 24.0°C, how far away is the mountain that reflected the sound wave

User Account

All Pages