2. Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm's optimal price, output, and the re- sulting profits for each of the following scenarios: (LO2) a. You charge the same unit price to all consumers. b. You engage in first-degree price discrimination. c. You engage in two-part pricing. d. You engage in block pricing. Price 110 100 90 80 70 60 50 40 30 20 10 0- MR MC-AC -D 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity
2. Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm's optimal price, output, and the re- sulting profits for each of the following scenarios: (LO2) a. You charge the same unit price to all consumers. b. You engage in first-degree price discrimination. c. You engage in two-part pricing. d. You engage in block pricing. Price 110 100 90 80 70 60 50 40 30 20 10 0- MR MC-AC -D 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter23: Managing Vertical Relationships
Section: Chapter Questions
Problem 10MC
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