3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p =16In Maryland, it is pyMarginal cost is 4.= 12100100(i) Find the profit-maximizing prices under third-degree price discrimination.(ii) Find the profit-maximizing uniform price.(iii) Now14 – By, where B is a positive constant. Without calculating the new profit-maximizinguniform price, explain whether it is higher or lower than in (ii).suppose that Call Your Aunt starts to sell in Virginia. The demand curve is p

A monopoly is a company's dominant position in an industry or sector to the point of excluding all…

3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p y 100 y 16 In Maryland, it is p = 12 – Marginal cost is 4. 100 (i) Find the profit-maximizing prices under third-degree price discrimination. (ii) Find the profit-maximizing uniform price. (iii) Now suppose that Call Your Aunt starts to sell in Virginia. The demand curve is p 14 – By, where B is a positive constant. Without calculating the new profit-maximizing uniform price, explain whether it is higher or lower than in (ii).

3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p y 100 y 16 In Maryland, it is p = 12 – Marginal cost is 4. 100 (i) Find the profit-maximizing prices under third-degree price discrimination. (ii) Find the profit-maximizing uniform price. (iii) Now suppose that Call Your Aunt starts to sell in Virginia. The demand curve is p 14 – By, where B is a positive constant. Without calculating the new profit-maximizing uniform price, explain whether it is higher or lower than in (ii).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer fast A profit-maximizing shop in a town has a constant marginal cost of $10 and can sell to two types of customers: students and non-students. The shop faces a demand by students given by QS = 50‒P and a demand by non-students given by QN = 190‒3P. Which price would students pay under uniform pricing? Which price would students pay if the seller could successfully engage in price discrimination?
Use the following graph of a monopoly market to answer this question: P $13 $10 150 300 Which of the following statements is an accurate interpretation of the graph? This firm engages in perfect price discrimination; 150 of its customers are willing to pay exactly $13, and 150 are willing to pay exactly $10. This firm price-discriminates by selling its product for $13 to the 150 consumers willing to pay at least $13, and selling it for $10 to the 150 consumers willing to pay between $10 and $13. This firm engages in price discrimination by negotiating on price with each of its customers. This firm price-discriminates by selling its product for $13 to the 150 consumers willing to pay at least $13, and selling it for $10 to the 300 consumers willing to pay between $10 and $13. This firm engages in perfect price discrimination; 150 of its customers are willing to pay exactly $13, and 300 are willing to pay exactly $10.
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