MANAGERIAL ECONOMICS
5th Edition
ISBN: 9781337106658
Author: FROEB
Publisher: CENGAGE L
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Question
Chapter 23, Problem 2MC
To determine
Diversification.
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Is “product crimpling” a horizontal or a vertical product differentiation? Why?
Select the correct one :
Do both state and federal law protect aganist trademark dilution?
A) Only some states have trademark dilution laws, but there is no federal law.
B) There is a federal law, but no state law.
C) Both federal law and some states have trademark dilution laws.
D) Every state has a law against trademark dilution, but there is no federal law.
E) Every state has a law against trademark dilution and there is a federal law .
Refer to the figure below. The price-discriminating firm earns a higher profit by
S/Q1
MR
D₁-AR₁
MR₁
D₂-AR
AC-MC
Quantity
Select one:
a. charging a lower price as time goes by.
b. charging a lower price to the consumers who acquire the good first.
c. charging a higher price as time goes by.
d. charging an average of a high price and a low price over time.
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Similar questions
- Exercise 3.5. Pablo, Dirk and Franz run the only bar in town. Pablo wants to sell as many drinks as possible without losing money. Dirk wants the bar to bring in as much revenue as possible. Franz wants to make the largest possible profits. Using a single diagram of the bar's demand curve and its cost curves, show the price and quantity combinations favoured by each of the three partners. Explain.arrow_forwardQ) Perfect price discrimination transfers the gains from trade from ________ to ________. Option. a. producers; consumers b. society; consumers c. society; producers d. producers; society e. consumers; producers Correctly explain with detail analysisarrow_forwardWhich of the following is necessary for a firm to practice price discrimination? Group of answer choices a. The firm is a member of a cartel. b. The demand curve for the product is perfectly inelastic. c. The firm can prevent resale of its goods. d. The government strictly enforces antitrust laws. e. The demand curve for the product is perfectly elastic.arrow_forward
- XYZ company uses a technology for producing its good. This enables the firm to meet the entire market demand at a lower price than its two competitors. What factor makes XYZ company a monopolist? a. increasing average total costs. b. a legal barrier to entry. c. Knowledge of exclusive production techniques d. All of thesearrow_forwardwhat is the following pricing strategy or price discrimination approach? the olympic commission offers different soccer ticket prices depending on seat location within the stadium (closer or further away from the pitch, behind the goalkeeper, halfway line, etc). B.Peak Load Pricing A.Bundling C.Indirect Segmentation Price Discrimination D.Complete Price Discrimination E.Direct Segmentation Price Discriminationarrow_forwardWhy might a service business be more selective than a goods-producingbusiness regarding the customers it pursues or accepts?arrow_forward
- As an entrepreneur, which graph illustrates the ideal brand loyalty you would like to see for your product, that is, the demand curve you would like to achieve as closely as possible? Product A Product B Price Demand Graph A Graph B Graph C Graph D Quantity Price Demand Quantity Price Product C Demand Quantity Price Product D Demand Quantityarrow_forward(a) U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending on elasticity of demand and government-imposed price ceilings. Is this acceptable? (b) Do you agree that price discrimination is legal?arrow_forwardQuestion 6 of 18 BlueSky Airlines would like to price discriminate between their vacation and business travelers. Move the points on the rectangle to the area representing the maximized profits BlueSky earns from vacation travelers. Vacation travelers 600 550 Profits 500 450 400 350 300 250 200 150 Marginal cost = average cost 100 50 Vacation traveler demand MR 100 200 300 400 500 600 700 800 900 1,000 Quantity of trips Vacation traveler price per trip ($)arrow_forward
- Write notes on Penetrating pricing.arrow_forwardIf the on-campus demand for soda is as follows: Price (per can) Quantity demanded (per day) 1.50 b. A monopolized market? tA $3.00 $2.75 $2.50 $2.25 30 40 50 60 and the marginal cost of supplying a soda is $2.00, what price will students end up paying in Instructions: Round your responses to two decimal places. a. A perfectly competitive market? $ 2.50 $2.00 $1.75 $1.50 $1.25 80 100 70 90arrow_forwardA fish farmer in central Malaysia is looking at marketing channels for his fishes. There are three general marketing channels available to the fish farmer: Sell to wholesaler a) b) c) Sell to retailer Sell directly to consumers i. Discuss the advantages and disadvantages of each marketing channel for the fish farmer. ii. State and justify which marketing channel would be most profitable for the fish farmer.arrow_forward
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