Intel offers baseline processors as well as higher end versions of the exact sameprocessors. The higher end versions are priced considerably higher and haveadditional features that the baseline versions do not have, but the marginal cost ofproducing both processors is virtually identical. This situation is an example of whatkind of price discrimination?A) Second DegreeB) Third DegreeC) First DegreeD) Two-Part Tariff

Price discrimination refers a situation where a consumer is charged different prices for the same…

Answered: Intel offers baseline processors as…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.0. The marginal cost of producing the product is constant at $75, while average total cost at current production levels is $140. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ b. you compete against one other firm in a Cournot oligopoly. $ 139 * c. you compete against 19 other firms in a Cournot oligopoly. S 130
In this solution (see image attached), how did they get "0.5*(5 - P)*(10 - 2P)"?
A monopoly A) cannot price discriminate because such a pricing strategy is illegal in the United States. B) faces extensive competition from firms making close substitutes. C) must determine the price it will charge.
A firm charges different prices, P1 and P2, for its domestic and industrial customers. The corresponding demand functions are P1 = 125 - 2Q1; and P2 = 310 - 3Q2. The total cost function is TC = 2000 + 30Q. Determine the value of Q, sum of Q1 and Q2, that maximizes profit with price discrimination. Note: Round to 1 decimal place (type the value with no additional text or explanation).
Would producer surplus with second-degree price discrimination not below a single price.
Q. STIHL, Inc., manufactures gasoline-powered chain saws for professional, commercial, farm, and consumer markets. To “better serve” their customers, STIHL offers its chain saws in four different quality lines and associated price ranges: occasional use, midrange, professional, and arborist. Under what circumstances could offering multiple qualities of a product be price discrimination? What form of price discrimination might this represent—first-, second-, or third-degree price discrimination? Explain why this practice could increase profit at STIHL.
The second-order condition for a monopoly maximizing its profit is:
2. Acme Pharmaceutical Company discovers a vaccine that prevents the common cold and has a patent that grants it a monopoly on this drug. Acme has plants in both the North America and Europe and can manufacture the drug on either continent at a marginal cost of $10. Assume there are no fixed costs. In Europe, the demand for the drug is QE = 70 - PE, where QE is the quantity demanded when the price in Europe is PE. In North America the demand for the drug is QN 110 PN, where QN is the quantity demanded when the price in North America is PN =
A business that price-discriminates will generally charge some customers more than marginal cost, and it will generally charge other customers less than marginal cost. True or False
Seafood Salt Company wishes to third degree price discriminate between retail grocers (group A) and commercial users such as bakeries (Group B). The firm’s total cost schedule is TC = $5*QA + $20*QB. Demands for retail grocers and commercial users are, respectively, QA = 4,000*PA-3.0and QB = 100,000*PB-2. The profit-maximizing prices to charge Groups A and B are
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. The demand elasticity of a widget at the monopoly price and quantity is: Multiple Choice -1.5. -2.5. 2
QUESTION 2 Uber provides point to point car transport services in Brisbane. The typical Uber service is called UberX. Uber also offers a service called UberSelect, a premium service that uses expense, newer cars. UberSelect costs approximately 40% more for customers than UberX. Which of the following statements are true: UberSelect is an example of third degree price discrimination. UberSelect is an example of using peak load pricing. Charging the same price for UberX and UberSelect would give Uber greater profits. The decision to charge customers more for UberSelect is a result of their demand being more elastic than UberX customers.

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