Assume that a local train station has a monopolyover train rides. The firm has estimated that itsmarket demand curve can be drawn from thefollowing equation P = 60 - (1/2) Q. Let MCAC = 15. The firm has determined that youngerconsumers (under 50) are willing to pay up to $30per ticket for a train ride and that older consumers(50 or older) are willing to pay up to $50 per ticketfor a train ride. If the firm price discriminates what istheir profit?

To determine the firm's profit when it price discriminates, we need to consider the given…

Answered: Assume that a local train station has a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Solve all this question......you will not solve all questions then I will give you down?? upvote.
100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 $40 $20 $100 0 $60 2 4 MR Suppose that Vanessa who owns a Zumba fitness center in rural Indiana can identify her customers' demand. How much would she charge in order to achieve 1st degree (=perfect) price discrimination? MC ATC D 6 8 10 Quantity (clients per day)
A firm is a natural monopoly. Its marginal cost curve is flat, and its average cost curve is downward sloping (because it has a fixed cost). The firm can perfectly price discriminate. Use a graph to show how much the monopoly produces, Q*. Show graphically and mathematically that a monopoly might shut down if it can only set a single price but operate if it can perfectly price discriminate.
Each consumer has the following demand for annual visits to Planet Fitness: Q = 200 - P (or P = 200 - Q), where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer? Annual fee = $18,050; P = $0 for each visit. Annual fee = $20,000; P = $0 for each visit. Annual fee = $18,050; P = $10 for each visit. Annual fee = $20,000; P = $10 for each visit.
• Consider demand p (Q) = 180 - 20, constant MC = 60. Draw the graph of monopoly two-block pricing and solve the optimal prices and quantities (p1, 21) and (p2, 22).
Please answer fast please arjent
Explain why when a firm has a monopoly in two goods and only sells the goods bundled, consumers must have different relative values for each of the two goods for bundling to be an example of price discrimination.
Please solve the last two parts which is D and E, the first three sub parts has already been solved
The three graphs below illustrate the market for electricity. The distribution of electricity is a natural monopoly; therefore, to take advantage of lower production costs, it is efficient to have only one firm in the market. Unfortunately, if a monopoly were allowed to provide electricity, it would charge a higher price and provide a smaller amount of electricity than would be desirable. In other words, the unregulated monopoly would charge the monopoly's profit-maximizing price. To avoid this, the government will allow a single firm to provide electricity, but the government will regulate the price. Let’s compare possible regulatory solutions.
Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or bundling. Resale Price Maintenance Predatory Pricing Scenario Citron is a firm that manufactures electric scooters. Suppose Citron sells its electric scooters to online retailers for $830 each and requires those online retailers to charge at least $840 to shoppers for each electric scooter. Hynes sells a wide variety of condiments to retail grocery stores. Hynes recently developed two new condiments: a popular barbacuffalo and a much less popular green ketchup. Hynes requires grocery stores to order 10 bottles of the green ketchup for every 100 bottles of the barbacuffalo bought. Warm Winds is the only firm producing air fryers. It costs $430 to produce one air fryer, and Warm Winds sells each air fryer for $850. After Sirocco, a new firm with the same costs as Warm Winds, enters the market for air fryers, Warm Winds starts selling its air fryers for a price…
Now pretend Mincer’s has a monopoly on UConn shirts. Draw a graph where Mincer’s is originally making 0 economic profits (D=ATC at profit-maximizing quantity), and then this shift in tastes occurs. Draw the box that represents the new profits/losses in this market, or explain why they will still make 0 profit.
For each example, select the type of price discrimination that is being used. A firm charges each consumer their reservation price: A tennis pro charges $15/hour for lessons for children and $30/hour for lessons for adults: Amazon Prime charges $12.99/month plus the price of all goods purchased. A firm charges only $0.25 more for a large soda than a small soda. A firm charges more for electricity used during the day than at night.

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