You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P= 450 -40Q, and your cost function is C(Q) = 290Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ 8 ☑ 320 b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? 450 $

You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P= 450 -40Q, and your cost function is C(Q) = 290Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ 8 ☑ 320 b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? 450 $

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

9 QUESTION 10 PRODUCT Product X Product Y Product Z YEAR 2000 2001 2002 2003 2004 price: $2.00 $3.00 $4.00 $5.00 $6.00 quantity: 1,000 1,000 1,000 1,000 1,000 price: $1.00 $1.00 $1.00 $1.00 $1.00 quantity: 1,000 1,250 1,500 1,750 2,000 price: $4.50 $4.75 $5.00 $5.50 $6.00 quantity: 1,000 1,000 1,000 1,000 1,000 10. The 2000 market basked would cost $ in 2003?
(a) Diagrammatically show and explain how oil prices dropped as concerns over fuel demand in the near term in COVID-19 pandemic hit Europe and the United States. Diagrammatically show and explain what happened to the oil market if the price remained unchanged despite the concerns over the fuel demand. (b) (c) You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods.
D9)
Couldn't do this, please provide concise workout and correct solution. Greatly Appreciated!
If total revenue is $550 and price per unit is $55 What is the value of output sold?
PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Lakes's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from DSM to ACY (Dollars per roundtrip) Room Rate at Mountaineer (Dollars per night) 350 150 50 100 200 ? For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Lakes is charging $350 per room per night. If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Lakes rooms per night to rooms per night. Therefore, the income elasticity of demand is from , meaning that hotel rooms at the Lakes are If the price of an airline ticket from DSM to ACY were to increase by 50%, from $100 to $150 roundtrip, while all other demand factors remain at their initial values,…
2. The relationship between price and demand per month for a consumer product is p = 3500 -1.1D5 where p is the price per unit in dollars and D is the demand in units. The fixed cost is $300 per month and the variable cost is $4.00 per unit. What is the optimal number of units that should be produced and sold per month? a. b. What is the maximum profit per month?
Need urgently
1. (a) A company expects fixed cost of $55,000. Margin is to be 46 percent of the retail. Variable cost in addition to costs of goods is estimated at $0.06 per dollars of sale. Find the profit function using s for sales volume. (b) Square Hospital Limited charges every COVID patient a fixed amount for using their ICU facilities. What would be the graphical nature of the demand function of ICU in this case ? (c) Write down the general form of the Augmented matrix of a system of Linear Equation which consists of 5 equations and 4 unknowns. (0.5 0.5 (d) Calculate the steady state vector for the given transition matrix: (e) Assuming the nonnegativity constraints for each variables, calculate the total number of corner points for the following system of inequalities: 2x + 5y + 4z 2 29 3r + 2y + z 2 23 10r + 8y +5z > 62
PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 0 Demand + 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Oceans's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from DSM to ACY (Dollars per roundtrip) Room Rate at Meadows (Dollars per night) 300 200 40 200 rooms per night to ,hotel rooms at the Oceans and hotel rooms at the Meadows are 200 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Oceans is charging $300 per room per night. If average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the Oceans rooms per night to rooms per night. Therefore, the income elasticity of demand is Oceans are ? from meaning that hotel rooms at the If the price of a room at the Meadows were to decrease by 20%, from $200 to $160,…
Consider the following data on a firm: Number of Units Sold Total Revenue (£'s) 10 20 30 40 50 60 70 100 180 240 280 300 300 280 Fixed Costs are £100, Variable costs are constant at £3 per (i) Write a table showing the price and quantity sold. (ii) Calculate the profit maximising output of the firm (iii) What are the profits at the profit maximising output? (v) unit produced. (iv) What is the average variable cost at the profit maximising output? What is the arc price elasticity of demand between 40 and 50 units?
Graph Input Tool (? S+ Tax Market for Jeans 100 90 I Quantity (Pairs of jeans) 10 Supply 80 Demand Price (Dollars per pair) Supply Price (Dollars per pair) 66.00 0.00 70 60 50 Supply Shifter 40 Demand Tax on Sellers (Dollars per pair) 20.30 30 20 10 + ㅜ 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of jeans) PRICE (Dollars per pair)