In the following table, complete the third column by determining the quantity sold in each country at a price of $20 per toy train. Next, complete thefourth column by calculating the total profit and the profit from each country under a single price.CountryFranceRussiaTotalPrice(Dollars per toytrain)2020N/ASingle PriceQuantity Sold(Millions of toytrains)N/ATrueProfit(Millions ofdollars)O FalsePrice(Dollars per toytrain)Le Jouet charges a higher price in the market with a relatively elastic demand curve.N/ASuppose that as a profit-maximizing firm, Le Jouet decides to price discriminate by charging a different price in each market, while its marginal cost ofproduction remains $12 per toy.True or False: Under price discrimination, Le Jouet is dumping toy trains into the Russian market.Price DiscriminationQuantity Sold(Millions of toytrains)Complete the last three columns in the previous table by determining the profit-maximizing price, the quantity sold at that price, the profit in eachcountry, and total profit if Le Jouet price discriminates.N/AProfit(Millions ofdollars) 8. International price discriminationLe Jouet is a French firm, and it is the only seller of toy trains in France and Russia. Suppose that when the price of toy trains increases, Russianchildren more readily replace them with toy airplanes than French children. Thus, the demand for toy trains in Russia is more elastic than in France.The following graphs show the demand curves for toy trains in France (DF) and Russia (DR) and marginal revenue curves in France (MRF) and Russia(MRR). Le Jouet's marginal cost of production (MC), depicted as the grey horizontal line in both graphs, is $12, and the resale of toy trains fromRussia to France is prohibited. Assume there are no fixed costs in production, so marginal cost equals average total cost (ATC).PRICE (Dollars per toy train)40363228242016840FranceMC-ATCDFMR₂TE02 4 6 8 10 12 14 16 18 20QUANTITY (Millions of toy trains)?PRICE (Dollars per toy train)4036322824201684002RussiaMR.DR4 6 8 10 12 14 16 18 20QUANTITY (Millions of toy trains)MC-ATCTRSuppose that as a nondiscriminating seller, Le Jouet charges the same price of $20 per toy train in each of the two markets.?

Price discrimination is the practice of charging different prices for the same good or service for…

In the following table, complete the third column by determining the quantity sold in each country at a price of $20 per toy train. Next, complete the fourth column by calculating the total profit and the profit from each country under a single price. Country France Russia Total Price (Dollars per toy train) 20 20 N/A Single Price Quantity Sold (Millions of toy trains) N/A O True Le Jouet charges a higher price in the market with a relatively O False Profit (Millions of dollars) Price (Dollars per toy train) N/A Suppose that as a profit-maximizing firm, Le Jouet decides to price discriminate by charging a different price in each market, while its marginal cost of production remains $12 per toy. Complete the last three columns in the ious table by determining the profit-maximizing price, the antity sold at that price, the profit in each country, and total profit if Le Jouet price discriminates. elastic demand curve. True or False: Under price discrimination, Le Jouet is dumping toy trains into the Russian market. Price Discrimination Quantity Sold (Millions of toy trains) N/A Profit (Millions of dollars)

In the following table, complete the third column by determining the quantity sold in each country at a price of $20 per toy train. Next, complete the fourth column by calculating the total profit and the profit from each country under a single price. Country France Russia Total Price (Dollars per toy train) 20 20 N/A Single Price Quantity Sold (Millions of toy trains) N/A O True Le Jouet charges a higher price in the market with a relatively O False Profit (Millions of dollars) Price (Dollars per toy train) N/A Suppose that as a profit-maximizing firm, Le Jouet decides to price discriminate by charging a different price in each market, while its marginal cost of production remains $12 per toy. Complete the last three columns in the ious table by determining the profit-maximizing price, the antity sold at that price, the profit in each country, and total profit if Le Jouet price discriminates. elastic demand curve. True or False: Under price discrimination, Le Jouet is dumping toy trains into the Russian market. Price Discrimination Quantity Sold (Millions of toy trains) N/A Profit (Millions of dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the following demand information: Quantity Price 40 7 34 10 What is the price given the revenue maximising quantity? a. $34.25 O b. $18.53 O c. $13.50 d. $27.50
1. Calculate the profit-maximizing quantity and price for the non-student market. (attached Figure A: Non-Students) 2. Calculate the profit-maximizing quantity and price for the student market. (attached Figure B: Students) 3. Calculate the profit if the firm charges both the non-students and students the same price of $20. (attached Figure A: Non-Students and Figure B: Students) 4. Calculate the profit if the monopoly firm perfectly price discriminates. (attached Figure A: Non-Students and Figure B: Students)
3. Using the cost curves for the monopolist (right), answer the questions 3a - 3d below: a. Indicate where the monopolist maximizes profits, output is equal to b. The monopoly price that maximizes profits is c. What is the maximum profit the firm can earn from its product? d. When the monopolist is maximizing total profit, the average total cost of producing that output level is? Price (dollars) 10 6 4 0 MR 6 Quantity T 11 ||| 8 9 10 MC ATC D
Only typed answer
Please help answer the following questions
4. What will be the problem created in the following market if the price is $11.00? How will it be corrected? $12.00 11.00 10 00 Price 9.00 8.00 200 400 600 800 1000 1200 Quantity
4. Firm A and firm B must decide whether to sell product X at a sales or a regular price. If both firms sell the product at a sales price, both firms earn a profit of 5. If both firms sell the product at the regular price, each firm earns a profit of 20. If firm B charges the regular price while firm A charges the sales price, firm A earns a profit of 60 while firm B has a loss of 15. If firm A charges the regular price while firm B charges a sales price, firm B earns a profit of 60 while firm A has a loss of 15. (a) Use the information to construct a payoff matrix for firms A and B. (b) Does firm A have a dominant strategy? (c) Does firm B have a dominant strategy? (d) What is the Nash Equilibrium for this game? Explain your answers.
What is the "generic competition paradox"? Select one: O a. When the patent has expired and pricing is free, prescription tends to move towards innovative drugs with a patent. O b. It is a price discrimination mechanism observed in the United States when the patent has expired and pricing is free. O c. It is a price discrimination mechanism observed mainly in Europe when the patent has expired and pricing is free. O d. When the patent has expired and pricing is free, the price of generics falls to the marginal cost, so the revenues of the innovative firms are not sufficient to cover R&D costs of the drug whose patent has expired.
9
1. There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 - 2p Qy = 60 - 0.5p Assume that the marginal cost of producing cigarette X is $10, the marginal cost of producing cigarette Y is $8, and that the market for both cigarettes is perfectly competitive. Assume that each pack of cigarette X smoked does $5 worth of health damage to the smoker, and a total of $4 worth of health damage to the smoker’s neighbors via second-hand smoke. Each pack of cigarette Y smoked does $6 worth of health damage to the smoker, and $5 health damage to the smoker’s neighbors. (a) Explain why the public supply curves differ from the private supply curves, and how this represents the externality from second-hand smoke. Highlight the area(s) of your diagram that represents a social loss. (b) Calculate the social loss for both. (c) Suppose the government decides to pursue a Pigouvian solution to eliminate social loss. What's amount of tax or subsidy would the government…
The following graph shows the daily market for extra-large cardboard boxes in New York City. Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day. Quantity (Boxes) Price (Dollars per box) Total Revenue (Dollars) Marginal Revenue (Dollars) Average Revenue (Dollars per Box) 0 0 1 2 3
1. Rank the following in ascending order of Home welfare and justify your answers. If two items are equivalent, indicate this accordingly. a. Tariff t in a small country with perfect competition b. Tariff t in a small country with a Home monopoly c. Quota with the same imports M in a small country, with a Home monopoly d. Tariff t in a country facing a Foreign monopoly