O Macmillan LearningSuppose that a small-town theater has six potential customers and islooking to implement price discrimination depending on whencustomers want to attend. Suppose the marginal cost of serving anadditional customer is $1.50. The data provide information about thetime of attendance and willingness to pay for a ticket.CustomerMaximum willingnessto payTime ofattendanceBrandon$2matineeTyler$30eveningAustin$15eveningAlexis$6matineeAshley$20eveningEmily$14matineeWhat should the theater charge for evening tickets?What should the theater charge for matinee tickets?$

Step 1:Step 2:Step 3:Additional comment: 1.dear remember for less price ticket high paying customers…

Answered: O Macmillan Learning Suppose that 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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Consumers are with price discrimination than with single pricing. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. always better off sometimes better off never better off neither better off nor worse off 1 Sub Unanswered 1 attempt left EN || W
The following graph shows the daily demand curve for bippitybops in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. Total Revenue 0 8 16 24 32 40 48 56 64 72 80 200 180 160 140 120 100 80 60 40 20 0 PRICE (Dollars per bippitybop) QUANTITY (Bippitybops per day) Demand A B Area: 1280 Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph. Total Revenue 0 8 16 24 32 40 48 56 64 72 80 3840 3520 3200 2880 2560 2240 1920 1600 1280 960 640 320 0 TOTAL REVENUE (Dollars) QUANTITY (Bippitybops per day) According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately . Suppose the…
hapter 3 i 13 The table below shows the weekly demand for hamburgers in a market where there are just three buyers. Price $ 6 5 4 3 Buyer 1 Qd 1 Buyer 2 Qd 2 Buyer 3 Qd 3 7 4 6 9 7 8 10 12 15 16 15 21 Multiple Choice If the price of hamburger falls from $5 to $3, then the weekly market quantity demanded will increase from 24 to 52. decrease from 52 to 24. increase from 120 to 156. increase from 29 to 55. 11,044 AUG 28 Saved ... .
Refer to the graph shown. Demand is unit elastic when revenue is: Revenue in thousands of dollars 99876SMO 10 A B 246 Multiple Choice $8,000 $10,000. D E 10 8 Quantity F G 12 14 16 Refer to the graph shown. Demand is unit elastic when revenue is: Revenue in 2 4 6 Multiple Choice $8,000 $10,000 D 8 10 Quantity G S 12 14 16 Ć
Snooki, a new marketing intern, was a little scatterbrained during the first meeting with her manager, when she made four statements about pricing. Which one of her four statements about pricing was correct? a. A product with an elastic demand is likely to face little competition. b. An EDLP retailer offers many price promotions. c. A product with an elasticity of demand of -0.7 will enjoy increases in revenue when prices are cut. d. Cost-plus pricing is not the perfect pricing strategy because the pricing method ignores customers’ willingness to pay and competitors’ pricing strategy.
A price-discriminating company can attract more customers by _ price, as long as reducing; the price is above marginal benefit and below marginal cost raising; the price is above marginal benefit and below marginal cost O reducing; the price is above its marginal cost raising; new customers are convinced to pay the price
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)
Thinking at the Margin 0 1 2 3 4 5 Hours of advertising 300 350 380 400 410 415 Total number of customers If a firm finds that advertising increases the total number of customers, for how many hours should it advertise? Assume that each extra customer spends an average of $10 at the store, and an extra hour of advertising costs the firm $200.
Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by The graph below depicts the monthly demand facing the only Internet service provider (ISP) that serves customers in a small town. Currently, the ISP charges a price of $110 per month and serves 8 thousand customers. Type here to search O Part 2 Price 100 150 140 130 120 100 10 Internet Service Number of Customers in 1,000 4 Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by $ thousand. Suppose the ISP is considering decreasing the price it charges by $20. Because of the output effect, total revenue will rise by S thousand.
Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: "Price discrimination is not possible when a good is sold in a perfectly competitive market." False, because perfectly competitive firms do not profit maximize by setting marginal revenue equal to marginal cost None of these choices True, because perfectly competitive firms have no market power False, because perfectly competitive firms have market power Which of the following kinds of price discrimination occurs when each customer in a single market is charged the maximum price he or she is willing to pay? Perfect price discrimination Third-degree price discrimination Second-degree price discrimination ○ This is not an example of price discrimination
ЕОC 16.04 Which of the below is NOT an example of price discrimination? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Airlines charge a lower price for round trips than one-way trips. a b Many Universities provide financial aid to needy students. Shops provide discount coupons to the public. Gas prices are different throughout the city.

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