Delores and Xavier, who manage a confection booth at a horse show, determine that to raise their profits, they should engage in price discrimination. Delores' idea is to charge a low children's price for cotton candy: Xavier's idea is to charge a low children's price for small statuettes of horses. Which scheme would be less susceptible to the problem of resale? O a. They're equally susceptible. Ob. It's impossible to tell, given the information provided. OC. Delores O d. Xavier's

Delores and Xavier, who manage a confection booth at a horse show, determine that to raise their profits, they should engage in price discrimination. Delores' idea is to charge a low children's price for cotton candy: Xavier's idea is to charge a low children's price for small statuettes of horses. Which scheme would be less susceptible to the problem of resale? O a. They're equally susceptible. Ob. It's impossible to tell, given the information provided. OC. Delores O d. Xavier's

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mario's Pizza is the only pizza place in Sorrento City. The graph shows the market demand curve for pizza in Sorrento City. Mario's Pizza is a perfect price discriminator. What is the marginal revenue from the 20th pizza sold in an hour? The marginal revenue from the 20th pizza sold in an hour is O A. $300 O B. - $4 O C. $16 O D. $15 40- 35- 30- 25- 20- 15- 10- 5- 0+ -0 Price (dollars per pizza) -10 5 10 15 20 25 30 Quantity (pizzas per hour) D 35 40 -S
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Assume that you are a loyal customer from Lanuit Coffee and you always buy Americano coffee from Lanuit Coffee with the price USD 10, but then you look the Toast n Bread store bundling package that consists of the various coffee brand: Happy Coffee with Toast n Bread package USD 20. Which one will you choose? Will you still buy coffee from Lanuit Coffee? And as a loyal customer, which one more elastic, Lanuit Coffee or Happy Coffee for you? If you as the management of Lanuit Coffee, what will you do to keep the loyal customer, and how about your opinion with the elasticity of demand in Lanuit Coffee products? Please explain your answer.
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Why won't perfectly competitve charge a price lower than the equilibrium price?
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