Question: 1 You start a business after inventing and patenting a design for a cleaning robot. Given your patent and the unique nature of the product, your business faces no competitors. The robots are very thorough and can clean both inside and outside your house (they can mow the lawn, clean your yacht you are going to buy, etc.) but take a considerable amount of time to do this so many families may find it advantageous to buy several. The marginal cost of production is $100 and assume there are no fixed costs. You are able to separate your customers into two groups: teen and adult. The demand curve for a teen is Q^T=1,000-5P and the demand curve for an adult is Q^A=3,500-10P. All customers have to pick up their product at the store. This allows you to identify which group is which and charge them the correct price. You are pleased with the profit you would make from this venture but believe you can do better by creating club membership. People who wish to purchase a robot must first join the Skynet membership club, where individuals will pay a membership fee but be able to purchase robots at a lower price. What price should you set for teens? Please Show your Work. a. 125 b. 150 c. 100 d. 50
Economics: Industrial Economics
Question: 1
You start a business after inventing and patenting a design for a cleaning robot. Given your patent and the unique nature of the product, your business faces no competitors. The robots are very thorough and can clean both inside and outside your house (they can mow the lawn, clean your yacht you are going to buy, etc.) but take a considerable amount of time to do this so many families may find it advantageous to buy several. The marginal cost of production is $100 and assume there are no fixed costs. You are able to separate your customers into two groups: teen and adult. The
All customers have to pick up their product at the store. This allows you to identify which group is which and charge them the correct price. You are pleased with the profit you would make from this venture but believe you can do better by creating club membership. People who wish to purchase a robot must first join the Skynet membership club, where individuals will pay a membership fee but be able to purchase robots at a lower price.
What price should you set for teens? Please Show your Work.
a. 125
b. 150
c. 100
d. 50
Question: 2
Please refer to the above Question.
All customers have to pick up their product at the store. This allows you to identify which group is which and charge them the correct price. You are pleased with the profit you would make from this venture but believe you can do better by creating club membership. People who wish to purchase a robot must first join the Skynet membership club, where individuals will pay a membership fee but be able to purchase robots at a lower price.
How many robots will each adult buy? Please Show your Work.
a. 3000
b. 2500
c. 1500
d. 2000
Question: 3
Please refer to the above Question.
All customers have to pick up their product at the store. This allows you to identify which group is which and charge them the correct price. You are pleased with the profit you would make from this venture but believe you can do better by creating club membership. People who wish to purchase a robot must first join the Skynet membership club, where individuals will pay a membership fee but be able to purchase robots at a lower price.
How many robots will each teen buy? Please Show your Work.
a. 250
b. 750
c. 375
d. 500
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