Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421315
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 7, Problem 1.6P
To determine
The profit of Apple.
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Students have asked these similar questions
Not use Ai and chatgpt
Questions 1-3 use the following case to determine a way to take a single product, like toilet and bundle it in such a way as to extract all of the profit at the time of the initial sale. You go to CostCo or
Walmart and you see paper towel sold in a bundle and you wonder how the retailer can make any money. You do a little research and you find that the demand for paper towels is depicted by the following
demand curve and marginal cost:
P=$2.20 (1/10)*Q
MR-$2.20 (2/10)*Q
MC 0.20
where P is the price of paper towels, MC is the marginal cost of paper towels, MR is the marginal revenue of paper towels and Q is the quantity of paper towels.
So you decide to try two different pricing strategies: 1) sell one roll at a time and 2) use multipart pricing to sell a bundle.
Given the results for the pricing strategies in problems 1 and 2, what is your pricing decision and why?
The following graph shows the daily demand curve for bippitybops in Denver.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
PRICE (Dollars per bippitybop)
240
220
200
180
160
140
120
100
80
8
60
40
20
0
mớ
H
+
0
9
18
27 36 45 54 63 72 81
QUANTITY (Bippitybops per day)
*
Demand
90
B
99
108
Total Revenue
(?)
Chapter 7 Solutions
Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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