What is the total revenue when it produces three units

Reference no: EM131251252

Suppose a monopolist is able to engage in perfect first-degree price discrimination in a market. It can sell the first unit at a price of 10 euros, the second at a price of 9 euros, the third at a price of 8 euros, the fourth at a price of 7 euros, the fifth at a price of 6 euros, and the sixth at a price of 5 euros. It must sell whole units, not fractions of units.

a) What is the firm's total revenue when it produces two units?

b) What is the total revenue when it produces three units?

c) What is the relationship between the price of the third unit and the marginal revenue of the third unit? d) What is the relationship between the price and the marginal revenue of the fourth unit?

Reference no: EM131251252

Questions Cloud

Deliver package to customer before traveling home : Nadine is an administrative assistant for her employer. At the end of her shift one day, her employer requires her to deliver a package to a customer before traveling home. She spends two hours driving to the customer site, and then three hours drivi..

Difference between deliberate and emergent strategy : 1. Compare AND contrast the difference between deliberate and emergent strategy, and give examples when these might occur in organizations.

Vice president of operations : Imagine that you are the vice president of operations at a production or service organization. You have noticed that your organization's current operations strategy is not supporting the challenges that the organization is presently facing. In ord..

Discuss the purpose of depreciation of assets : In July of 2009, Mr. Mann, a sole proprietor who performs excavating services, purchased and put to use for business a piece of heavy equipment for $36,500. define capital asset and discuss the purpose of depreciation of assets, and why depreciation ..

What is the total revenue when it produces three units : Suppose a monopolist is able to engage in perfect first-degree price discrimination in a market. It can sell the first unit at a price of 10 euros, the second at a price of 9 euros, the third at a price of 8 euros, the fourth at a price of 7 euros..

Units of raw material : A manufacturer can sell product 1 at a profit of $20 per unit and product 2 at a profit of $40 per unit. Three units of raw material are needed to manufacture one unit of product 1, and six units of raw material are needed to manufacture one unit ..

Explain how the interest will be calculated : For your term paper, explain how the interest will be calculated based on a 3% per year, compounded quarterly. Please remember such concepts deposits, interest posting, and withdrawals.

Outbound sales representatives : Elemarketers receive $15 commission on all new customers they sign up for phone service through Birch Phones. Each telemarketer works 40 hours.Compute the gross pay for each of the following outbound sales representatives.

Provide a brief summary of the organization : Provide a brief summary of the organization. - Explain why a change was needed. - Explain the change that was undertaken.

User Account

All Pages