Sponser's Superior Stoven advertises a one-day sale on electronic stoves. The ad specifies that the discount is only available to senior citizens aged over 65. Wdoes the firm include this restriction?Spenser's Superior Stoves uses this restrictionOA to provent resale between consumers.OB. to increase market power,OC. te pracice nonlinear price discalminationOD. te practice group price discrimination.OE to practice perfect price dscrimination

Businesses use various selling strategies to maximize their profits. One such strategy used by…

Answered: Spemer's Superior Stoves advertises 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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enter roctor "se urce n When negative externalities are present in a market 3 O private costs will be greater than social costs. O social costs will be greater than private costs. O only government regulation will solve the problem. O the market will not be able to reach any equilibrium. Question 3 In a monopolistically competitive industry, firms set price O equal to marginal cost since each firm is a price taker. O below marginal cost since each firm is a price taker. O above marginal cost since each firm is a price setter. O always a fraction of marginal cost since each firm is a price setter. C $ O 4 % BABAA 5 M Oll 6 & O 7 8 O 9 2 pts ✓ 0
Assume that you are a loyal customer from Lanuit Coffee and you always buy Americano coffee from Lanuit Coffee with the price USD 10, but then you look the Toast n Bread store bundling package that consists of the various coffee brand: Happy Coffee with Toast n Bread package USD 20. Which one will you choose? Will you still buy coffee from Lanuit Coffee? And as a loyal customer, which one more elastic, Lanuit Coffee or Happy Coffee for you? If you as the management of Lanuit Coffee, what will you do to keep the loyal customer, and how about your opinion with the elasticity of demand in Lanuit Coffee products? Please explain your answer.
H2
da 6 A market is characterised by an inverse demand curve p = 8 - 2O where Q is total quantity. Two firms, A and B, are competing à la Cournot and ta non TCA(qA) = 29A and TCB(qB) = 9 %3D %3D data Total profits n (Le. the sum of profit for the two firms) are equal to: ggio max. ontrassegna O (a) N = nda O (b) = 16 O (c)N = 4 O (d) = 9
QUESTION 1 There is free entry and exit in O only perfect competition O only in monopolistic competition both perfect competition and monopolistic competition O neither perfect competition nor in monopolistic competition QUESTION 2 The equality of marginal revenue and marginal cost to reach a profit maximization level applies to O perfectly competitive markets O monopoly markets O monopolistically competitive markets all kind of markets QUESTION 3 The correct formula to calculate marginal cost is O total cost/Quantity O change in total cost/change in quantity O total cost x quantity O average total cost/quantity O O
Suppose that the quantity demanded of good X rises from 90 units to 110 units when its orice falls from $1.20 to 00 cents per unit long the are-elembory a demand/mid-point method, the own- price elasticity (absolute value only) of demand for this product is Select one a. 1 b. 4 c 0.75 Od 0.5 e2
Excrcise: PcQ)= 90-Q , mc= 30 Q: ca) Find thne opnmal Twe-block pricang quantities and prices pricing (b) Single monopliy pricing Pm 2 (C) row ca> cb) on the samc graph Calculate the CS, PS. DWL m part (a) N(b)
Which of the following describes bundling as a form of price discrimination? O a. Customers with similar demographic characteristics are grouped together. O b. Customers with similar preferences are put in groups, each with a set price. O C. Different products are sold together at a cheaper total price than if sold separately. O d. A product is sold at a lower per-unit price if several units are bought together.
b. Suppose a price-discriminating monopoly has segregated its market into two submarkets and can prevent resale between the two. Assume that its marginal cost is constant and equal to its average total cost of $8. The firm's demand schedule for the first group is given by the first two columns of the following table. Output Price MR TR AR 24 1 22 20 3 18 4 16 5 14 12 7 10 8 8
Critical Thinking Cost-plus pricing used to be the mostcommon approach to setting prices in the marketplace. Ithas the advantages of being simple and ensuring that aprofit margin is achieved on every unit sold. However, ashighlighted in the chapter, there are alternative approaches to setting prices.Do you think that cost-plus pricing is still applicablein today’s world, or are there more suitable approachesto setting prices? For what type of products or industries do you think cost-plus pricing can still be used effectively?
When price discriminating by group, firms want to charge higher prices to customers with... O less elastic demand O more elastic demand O more elastic supply O less elastic supply
Od. $20 16. C. $16 6$ 9 0 181 ATC The profit-maximizing price for Grey's electrical service, a monopolist, is

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