Who benefits from bobbie''s price discrimination

Assignment Help Econometrics

Reference no: EM131297916

Bobbie's Hair Care is a natural monopoly. Table 1 shows the demand schedule (the first two columns) and Bobbie's marginal cost schedule (the middle and third columns). Bobbie has done a survey and discovered that she has four types of customers each hour: one woman who is willing to pay $18, one senior who is willing to pay $16, one student who is willing to pay $14, and one boy who is willing to pay $12. Suppose that Bobbie's fixed costs are $20 an hour and Bobbie's price discriminates.

Who benefits from Bobbie's price discrimination? Is the quantity of haircuts efficient?

Reference no: EM131297916

Questions Cloud

What are some of the major challenges facing the eu : Although European Union is the most advanced form of regional integration, it is currently facing a challenging time. What are some of the major challenges facing the EU?

Is this a good or a bad thing : Defend this view: literary and religious texts provide us with important insights into the human experience.Defend this claim: though they are often forced into the background, the strength of female characters in religious/literary texts is easily ..

Explain some common methods richard is planning : Identify and explain some common methods Richard is planning to use to differentiate his sweaters from other competing products.

What arguments do you see used by opponents of gov : What arguments do you see used by advocates and opponents of Gov. Bevin's plan, and how do they reflect Morone's "Puritan" and "Social Gospel" characterizations of morality politics (this week's required reading)?

Who benefits from bobbie''s price discrimination : Who benefits from Bobbie's price discrimination? Is the quantity of haircuts efficient?

What are company capital structure weights on book value : Book Value versus Market Value; Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. What are the company’s capital structure weights on a book value basis? What a..

Understand associate and leadership involvement : Students learn to understand associate and leadership involvement in creating metrics that fit the organization's culture and strategy.They will also be able to successfully track progress to goals.

Calculate the irr and the npv for each project : Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. Calculate the IRR and the NPV for each project and indicate the correct accept/reject decision for each

Who is burton snowboards target market : Who is Burton Snowboards' target market? How do you think Burton identified its target market?- How does globalization affect Burton's target market and marketing strategy?

User Account

All Pages