Reference no: EM133630201
Question The graph depicts the demand curve (D), the marginal revenue curve (MR), the marginal cost curve (MC) and the average total cost curve (ATC) of a firm with market power
C. If adopting Block pricing:
(i) how many units of the products will be in each package? Explain!
(ii) What will be the price charged for each package? Explain!
(ii) What profit will be made? Explain!
(D)Now, the firm has decided to sell in groups of 10 units
Question 1. What type of Price Discrimination is this pricing strategy? Explain!
Question 2. What are the profits earned from selling the first group of 10 units of the product? Explain!
Question 3. What profits are earned from selling the second group of 10 units of the product? Explain
Question 4. What profits are earned from selling the third group of 10 units of the product? Explain!
Question 5. What are the total profits from selling 30 units under this type of Pirce Discrimination? Explain!