User Account

All Pages

What is revenue-management price in market

Assignment Help Business Economics
Reference no: EM132667761

One difference between price discrimination and revenue management is that in revenue management, (marginal) costs are not considered. Suppose that a firm has two types of customers, A and B, with associated demand curves QA = 100 - 5?P; QB = 32 - P.

a. If the firm considers a combined market, what is its revenue-management price?

b. If the firm separates the markets, what is its revenue-management price in each market?

c. Which policy should you follow, (a) or (b)? Why?

Write out the profit-maximization conditions for a monopolist to mark-up over price. That is, what is (P?MC)/P equal to if the monopolist is profit-maximizing. From there, solve for P?MC to give a measure of the degree to which the monopolist price is distorted from the long-run perfectly competitive price, P = MC. This is the distortion for a monopolist in a one-sided market. Now, refer to your notes on the markup rule for a profit-maximizing platform monopolist in a two-sided market. Is the platform monopolist's price on one side of the market more or less distorted than that for a monopolist in a one-sided market? Explain.

Reference no: EM132667761

Questions Cloud

How do select a valuation method from the introduction : How do Select a valuation method from the introduction in the Learning Guide and describe why you might use that method to value a business.
Explain how mondelez is pursuing economies of scope : Discussion Questions: "Snack Giant Mondelez Makes $23 Billion Takeover Bid for Hershey" and "Sales Pressure on Mondelez, Hershey Could Bolster Case for Merger"
What arguments does the author eventually advocate herself : What arguments does the author eventually advocate herself? In other words, where does she stop explaining the arguments and thoughts of Plumwood and Haraway.
Calculate net purchases and cost of goods purchased : Assuming Bassing uses a multiple-step statement of income, calculate net purchases, cost of goods purchased, cost of goods sold
What is revenue-management price in market : One difference between price discrimination and revenue management is that in revenue management, (marginal) costs are not considered.
How much is the wage of mr x : How much is the wage of Mr. X. A worker takes 13 hours to complete a work on daily wages and 8 hours on a scheme of bayment by results.
How much of these expenses can the Spencers deduct : Lodging (single and double occupancy are the same rate-$250 each day) 750. How much, if any, of these expenses can the Spencers deduct
Explain the application of regression techniques : The development of quantitative tools and their application to economic and financial models. Emphasis will be placed on multiple regression analysis.
What is the product cost per unit for coed novelties : Coed Novelties manufactures key chains for college bookstores. If 45,000 units were produced in 2017, what is the product cost per unit?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd