Answer the following questions based on the information given below. C(Q) = 125 + 4Q^2 Determine the profit-maximizing output and price, and discuss its implications, if 1. You are a price taker and other firms charge $40 per unit; 2. You are a monopolist and the inverse demand for your product is P = 100 - Q
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Answer the following questions based on the information given below.
C(Q) = 125 + 4Q^2
Determine the profit-maximizing output and price, and discuss its implications, if
1. You are a price taker and other firms charge $40 per unit;
2. You are a monopolist and the inverse demand for your product is P = 100 - Q
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