[10] Suppose a retail seller of jeans currently has 40 customers. The retailer offers the following quantity discount to these 40 customers. Buy the 1* pair of jeans at a price of $100, buy a 2d pair of jeans at a price of $80, buy a 3d pair of jeans at a price of $60, and buy a 4t pair of jeans at a price of $40. Suppose the cost to the retailer for each pair of jeans is $40. Suppose of these 40 customers, all buy the 1ª pair of jeans, 30 of these 40 buy a 2nd pair of jeans, 20 of these 30 (i.e., those who bought a 2nd pair) buy a 3d pair, and 10 of the 20 (i.e., those who bought a 3ªd pair) buy a 4“ pair. The profit to the retailer from selling jeans to these 40 customers in this way equals: А. $4000 В. $4600 С. $6200 D. None of the above [11] In the case of first degree price discrimination, each consumer is charged his/her reservation price. А. True В. False

[10] Suppose a retail seller of jeans currently has 40 customers. The retailer offers the following quantity discount to these 40 customers. Buy the 1* pair of jeans at a price of $100, buy a 2d pair of jeans at a price of $80, buy a 3d pair of jeans at a price of $60, and buy a 4t pair of jeans at a price of $40. Suppose the cost to the retailer for each pair of jeans is $40. Suppose of these 40 customers, all buy the 1ª pair of jeans, 30 of these 40 buy a 2nd pair of jeans, 20 of these 30 (i.e., those who bought a 2nd pair) buy a 3d pair, and 10 of the 20 (i.e., those who bought a 3ªd pair) buy a 4“ pair. The profit to the retailer from selling jeans to these 40 customers in this way equals: А. $4000 В. $4600 С. $6200 D. None of the above [11] In the case of first degree price discrimination, each consumer is charged his/her reservation price. А. True В. False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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