What will happen to price of advertisement

Assignment Help Econometrics
Reference no: EM13187817

A monopolist has two types of customers. There are 100 of Type A, who will each pay up to $10 for a single unit of the good, and 50 of Type B, who will each pay up to either $8. Neither is willing to purchase additional units at any price. If it must charge a uniform price, find that price.

 Assume that spending $80 on advertising will attract 100 more Type B customers. Should the monopolist advertise? If so, what will happen to price?

Reference no: EM13187817

Questions Cloud

Why does http at the application layer uses tcp : Why does HTTP at the application layer uses TCP while DNS uses UDP when it passes its message packet with overhead to the Transport Layer and then hand it off to the Network Layer?
Different methods available for collecting survey data : Compare and contrast the different methods available for collecting survey data and include examples that are different from what is used in the textbook.
How many units will the consumer buy in total : qd=1000-5p mr=200-0.4q marginal cost is constant at $20. The firm is considering quantity discount. The firs 400 units can be purchased at $120 and further units at $80. How many units will the consumer buy in total
Hottest topics in the 90''s was the development : One of the hottest topics in the 90's was the development and use of teams within the organization, particularly self-managed work teams. A reason frequently cited for support of these self-managed teams is that they reduce the number of managers req..
What will happen to price of advertisement : A monopolist has two types of customers. There are 100 of Type A, who will each pay up to $10 for a single unit of the good, and 50 of Type B, who will each pay up to either $8. Neither is willing to purchase additional units at any price. If it m..
Design an appropriate set of classes to solve the problem : The purpose of this project is for you to demonstrate your understanding of object oriented software development in practice.
How to lobby government officials : Suppose that in the hypothetical country of Vanadia, picture frames are distributed based on government policy. This system of distributing goods gives the residents of Vanadia an incentive to spend timea) earning money b) lobbying government officia..
Briefly outline how regional metamorphism : Briefly outline how regional metamorphism is related to plate boundaries? Are certain types of metamorphic rocks indicative of particular plate boundaries or tectonic settings?
What can a govt do to raise the living standard : What can a government do to raise the living standard of an economy in the long term -Encourage firms to adopt the best technology in the production process. -Adopt measures to attract foreign investments in the economy.-Increase the period of free e..

Reviews

Write a Review

Econometrics Questions & Answers

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  How do the car prices of both countries compare

A Honda Accord sells for $28,000 in the United States and for SF35,520 in Switzerland. Given an exchange rate of SF1.25 = $1, how do the car prices of both countries compare

  How much charlie will save as function of the interest rate

Charlie cares only about the amount of chocolate he eats this year (C0) and next year (C1). His preferences correspond to the utility function \(U(C_{0},C_{1})=4(\sqrt{C_{0}}+\sqrt{C_{1}})\) Suppose he earns $1,000 this year and nothing..

  Estimate simple linear regression models

Estimate simple linear regression models for both the raw data and the logs, estimating both the intercept and the slope.

  Find the marginal cost of producing iphones

Market research at Apple Corporation has shown that the demand function for its new iPhone is as follows: QA = 3 - 0.02PA + 0.0002I + 0.01PS where QA is the quantity demanded (in thousands) of iPhones, PA is the price of an iPh..

  Determine the rate of return for the thing-a-may-jig project

Fancy Gadgets, Inc. has developed a new Thing-A-May-Jig at a cost of $2,000,000. Projected profits from the sale of Thing-A-May-Jigs for the next five years are: $300,000, $400,000, $500,000, $600,000, and $250,000. At the end of the fifth year, t..

  Computing regression lines and coefficient of squares

Computing regression lines, coefficient of squares, graphing dependent and independent variables using square footage vs home sales.

  What single sum of money

What single sum of money at t=6 is equivalent to the following cash flow profile if i=10%? N cash flow 1  -400 2  100 3  100 4 100 5  0..

  Find the cost of 100 compressors of 200 h.p. rating

One hundred compressors of 200 H.P. rating are being considered for purchase by the state highway department. The consumer price index was 400 five years ago and is 520 today. The cost of 150 H.P. compressors bought five years ago is as follows

  Question about multiple regression

Assume that when using the multiple regression in the formula Y = b1X1 and b2X2 + E that X1 represents wages and X2 represents transportation expenses?

  Find numerical equation relating plan aggregate expenditure

The following set of equations describe an economy: C = 14,000 + 0.6(Y - T) - 50,000r, I p = 7,000 - 25,000r, G = 8,000, NX = 2,000, T = 8,200, Y* = 46,450 a. Find a numerical equation relating planned aggregate expenditure to output and to th..

  Analyze the optimal solution

Solve the following linear programming model graphically. In addition, write the problem in standard form and do a constraint analysis for the optimal solution. Minimize 10x + 15y Subject to 5x + 2y ? 40 x + 2y 0

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!

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