PANEL A PANEL B $3.00 $1.50 1.00 LRAC, MC 1.00 LRAC, MC D' MR MR 400 Quantity per period 500 Quantity per period Refer to Exhibit 9.14, which shows the activity of a price-discriminating monopolist that divides its customers into two segments based on price elasticity of demand. Disregarding the actual price shown, which panel is likely to represent business travel? O a. both Panel A and Panel B b. neither Panel A nor Panel B O c. Panel B O d. Monopolists are not concerned with elasticity. O e. Panel A Dollars per unit Dollars per unit

PANEL A PANEL B $3.00 $1.50 1.00 LRAC, MC 1.00 LRAC, MC D' MR MR 400 Quantity per period 500 Quantity per period Refer to Exhibit 9.14, which shows the activity of a price-discriminating monopolist that divides its customers into two segments based on price elasticity of demand. Disregarding the actual price shown, which panel is likely to represent business travel? O a. both Panel A and Panel B b. neither Panel A nor Panel B O c. Panel B O d. Monopolists are not concerned with elasticity. O e. Panel A Dollars per unit Dollars per unit

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

If the monopolist shown in the following figure could practice first-degree price discrimination, the consumer surplus would be: Price (dollars) 50 40 30 20 10 0 O $450.00 $900.00 $0.00 $225.00 O $1,200.00 30 50 60 MR 100 MC Quantity
A single-price monopolist is currently producing at an output level where marginal revenue is $14, marginal cost is $16, AVC=$13, and ATC= $15. It is assumed that the monopolist, as usual, chooses its price on the demand curve. To maximize profit or minimize losses in the short run, this monopolist should O A. decrease the price and increase the level of output. O B. increase the price and the level of output. O C. leave the market. O D. decrease the price and the level of output. O E. increase the price and decrease the level of output.
Quantity Demanded Price $8 $7 6. $6 7 $5 8 $4 $3 10 $2 11 TABLE 10- 1 Refer to Table 10 - 1. For a single – price monopolist, the marginal revenue associated with increasing sales from 6 to 7 units is A. -4. В. 4. С. 2. D. - 2. O E. 0.
A monopolist faces the following demand curve: Price $10 $9 $8 $7 $6 $5 $4 $3 Quantity 5 Select one: O a. 31 units O b. 7 units O c. 16 units O d. 23 units 10 16 23 31 45 52 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. What is the profit-maximizing level of output?
V7 Describe what price discrimination means, and discuss 1st, 2nd,and 3rddegree price discrimination. In your discussion, include under what conditions firms are able to discriminate prices for each type of price discrimination and what may hinder these practices. Also mention which degree is “best” for the firms and how they affect consumers. Also mention one example for each type of price discrimination
6.
3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p = 16 In Maryland, it is p y Marginal cost is 4. = 12 100 100 (i) Find the profit-maximizing prices under third-degree price discrimination. (ii) Find the profit-maximizing uniform price. (iii) Now 14 – By, where B is a positive constant. Without calculating the new profit-maximizing uniform price, explain whether it is higher or lower than in (ii). suppose that Call Your Aunt starts to sell in Virginia. The demand curve is p
Question 30 Demand: P=120-Q Marginal Revenue: MR=120-2Q Total Cost: TC=Q² Marginal Cost: MC=2Q For this monopolist, the profit-maximizing price is and the profit-maximizing quantity is 90, 30 30, 90 40, 80 None of these answers O O O
Q80 If a single-price monopolist sets price where the price elasticity of demand equals one, its... a. Total revenue is falling. b. Total revenue is rising, although marginal revenue is falling. c. Marginal revenue is always positive. d. Total profits are at a maximum. e. Total revenue is at its maximum. Clear my choice
Which of the following statements is not correct? Select one: A single price monopolist is more efficient than perfectly competitive market because it makes a larger profit. a. O b. A single price monopolist produces less than the competitive market. O c. A single price monopolist charges more than the competitive market. d. A single price monopolist faces a downward sloping demand curve. A single price monopolist increases produces surplus at the expense of e. consumer surplus.
Charging a price to different groups depending on their different demand elasticities is described as ... Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C Write your response here... d e Question 9 1st Deg Price Discrimination 2nd Deg Price Discrimination 3rd Deg Price Discrimination 2-part pricing Bundling
In a market where a monopolist can charge different prices to different groups, which of the following groups will likely be charged the lowest price?O a. the group for which the good is a necessityO b. the group for which the good makes up a large portion of income (big-ticket item)O c. the group for which the good has no good substitutesO d. the group for which the good makes up a small portion of income (small-ticket item)O e. The groups described in (a), (c), and (d) will all get charged a lower price than the group described in (b).