A computer hardware firm sells both laptop computers and printers. Through the magic oft focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices areas illustrated in the figure below.LaptopPrinterBundleCustomer ACustomer BCustomer C$750$1,000$100$150$850$1,150$650Se00S50Assume for simplicity the marginal cost of production for laptops and printers is zero.in total?If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profil? Assuming for simplicity that the firm has only one customers of each type, how much does it earmTo maximize profit using individual prices, the firm should charge a price for laptops ofp=0and a price for printers of(Enter your responses as whole numbers.)In tum, profit isx=$. (Enter your response as a whole number.)After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and priters together as a bundle instead of separately. Is the consultant right? Assume again that thefirm has one customer of each type and that marginal cost is zero. How much does the firm ean in total from pure bundling?The profit-maximizing pure bundle price is S. (Enter your response as a whole number.)In tum, profit is x = $. (Enter your response as a whole number.)Why does bundling pay or not pay?V hecause customer reservation values for lantons and orinters in this example arevl correlated.Bundlina

the marginal cost of production for laplops and printers is zero. arge only individual prices (not use the bundie price), what prices should it set for its laptops and printors to maximize profit? Assuming for simplicily that the firm as only one custormer ảng individual prices, the firm should charge a price for laptops of sof s as whole numbers.) (Enter your response as a whole number.) stly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together as a bundle instead of separately. Is the oc er of each type and that marginal cost is zero. How much does the firm eam in total from pure bundling? pure bundle price is S]. (Enter your response as a whole number.)

the marginal cost of production for laplops and printers is zero. arge only individual prices (not use the bundie price), what prices should it set for its laptops and printors to maximize profit? Assuming for simplicily that the firm as only one custormer ảng individual prices, the firm should charge a price for laptops of sof s as whole numbers.) (Enter your response as a whole number.) stly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together as a bundle instead of separately. Is the oc er of each type and that marginal cost is zero. How much does the firm eam in total from pure bundling? pure bundle price is S]. (Enter your response as a whole number.)

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

for a firm with price in excess of average total cost, the presence of ecomonics profits implies that the firm should increase output in the short runeven if the price is below marginal cost . true or false explain
3 The figure below shows the cost curves for a profit-maxmizing firm in a periecny competitive narket. If the market price is $30 and if the firm is producing outpul. the amount of its total variable cost? Price TVC and cost TO ATCHO MC ATC AVC PAL $40.50 36.00 30.00 MR 22.00 7LEE 20.00 130 180 240 Quantity O S7,200 b. $6,480 C. $5,400 d. $3,960
MC we e-MR-D 01214 6 telof wh Piease refer to the above graph of a perfectly competitive firm's cost and revenue curves the price of thin product is $7, what is the proft maximizing level of output? unts the price of this product is $7, what is the frm's total revenue when it maximires proft? S It the price of this product is $7, what is the fiem's total cost when it maximizes profir?S It the price of this product is $7, what is the fims total variable cost when it maximizes proft?S What is the fiem's tatal fed oost? the price of this product is $7, what is the fm's proft or loss when t maximizes pro? of loss, write answer as a regative number wth minius sgn)5
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…
Suppoe at the curent level of production a frmts marginal revenue equalo $1,000, their average total costs curently equal $1,200, and their marginal cost equals S00, Tis firm OA should expand output because their evenue will increase by $1.000, OB. should not expand output because their profit will decrease by $200. OC should expand output because their profit will increase by $100 OD. There is not information given to determine whether this firm should expand output or not
QUESTION 2 When the article said that Bird was making 19% gross margin profit, this is O A. Accounting profit O B. Economic Profit O C. Neither accounting nor economic profit. D. Cannot tell from the article what kind of profit с
When large retailers like Costco offer products at a discounted price because they are able to negotiate cheaper rates with their suppliers compared to smaller competitors, they benefit from O Availability of compliments. O Learning-curve effects. O Experience-curve effects. Economies of scale.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
8. Consider a firm's short run and long run average costs depicted below: 300 270 240 210 180+ Wunt 150 120+ 90 60 30 ---- W X AC LRAC 200 400 600 800 1000 1200 1400 1600 1800 2000 # of units Suppose this firm has been producing 400 units per month for a long time. If it decides to increase its output to 800 units per month, then its average cost will O A. fall from $300/unit to $150/unit initially, then rise to $240/unit eventually. O B. fall from $300/unit to $60/unit initially, then rise to $240/unit eventually. O C. fall from $300/unit to $60/unit and remain there. O D. fall from $300/unit to $240/unit and remain there. O E. rise from $150/unit to $240/unit initially, then fall to $60/unit eventually. OF. rise from $150/unit to $300/unit initially, then fall to $60/unit eventually. O G. fall from $150/unit to $60/unit and remain there. OH. rise from $150/unit to $240/unit and remain there.
Give typing answer with explanation and conclusion
9
$30 M ATO 20 AVC 15 75 80 100 Output 1-At which point the firm gets abnormal profit? 2- based on your answer in question one, what is the amount of total revenue? 3- based on your answer in question one, what is the amount of abonormal profit? 4-Find the value of Average Fixed cost at Q= 100 5- Determine the shutdown point? For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac).