As a manager of a chaln of movle theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P= 25 - 0.0010, on weekdays, It is P= 16 - 0.002Q You acquire legal rights from movie producers to show their films at a cost of $30,000 per movie, plus a $3.50 "royalty" for each moviegoer entering your theaters (the average moviegoer in your market watches a movie only once). What type of pricing strategy should you consider in this case? O First degree price discrimination O Block pricing • Third degree price discrimination O Second degree price discrimination What price should you charge on weekends?
Q: The people who live on Shangri-La Island consume only rice and fish. Last year, which was the…
A: Here, it is given that the people of Shangri-La consumes only rice and fish, but there is a change…
Q: A natural monopolist has the total cost function C(q) = 900 + 25q, where q is its output. The…
A: Given; Total cost function; C(q)=900+25qDemand function; p=90-p According to government regulation,…
Q: What is the difference betw een the Keynesian model and the classical model when it comes to…
A: The Classical Model suggests that the economy is always at the full employment level of output,…
Q: true or false: 21) The indivisible reserve of savings and credit cooperatives is NOT covered by…
A: Insurance is a policy wherein the protected party embraces to pay the safety net provider a set…
Q: Monopolies -- Questions 10-15 refer to Figure 5-1 below, Figure 6-1: The diagram below depicts the…
A: Monopoly is the form of market where only single seller sale the products . And production decision…
Q: Discuss the reasons for 2008 Global Mortgage Crisis. Please limit your report to no more than 300…
A: Financial deregulation was the root cause of the financial crisis. This allowed banks to trade hedge…
Q: The town council of Frostbite, Ontario, is trying to decide whether to build an outdoor skating rink…
A: Profits are maximised when marginal revenue equals marginal cost or when the difference between…
Q: What are the implications of intercultural communication to Technological Globalization?
A:
Q: A present amount of 5300 is invested into an account, which can be withdrawn after the end of 12.8…
A: The equivalent uniform annuity would be equivalent to growing annuity when both present value are…
Q: Which of the following statements is true? a. In a finitely repeated prisoner’s dilemma, players…
A: Nash Equilibrium: A Nash equilibrium refers to one in which no one can get better without making…
Q: Question 14 Becky is a corporate account manager at a company that sells athletic equipment to other…
A: Given information: Becky receives a monthly salary of $2000 plus commission on any new sales. Last…
Q: explain why the lower marginal cost firm can never produce the same as the high marginal cost firm
A: marginal cost is the cost of producing additional unit of product . and it helps to the firm to…
Q: In perfect competition, the product of a single firm Select one: a. has many perfect complements…
A: "In perfect competition market structure there are many buyers and sellers in the market and…
Q: rate A) the banks charge individual investors for Fed funds. B) the banks charge each…
A: *Answer:
Q: The government is considering passing a regulation that will prohibit the use of a certain chemical…
A: Given, P1 = $5 Q1 = 6 million units P2 = $6 Q2 = 4 million units slope of demand curve, m=change in…
Q: Economics 2. give two curvilinear equations of three sector economy: IS, where Y = 2000 – 5000r ISz…
A: Answer is given below
Q: The fixed cost element for the firm is a. $11,250 b. $10,250 c. $12.250
A: Mixed costs have a nature of fixed costs as well as variable costs. They have a certain fixed…
Q: Trueeee Or falseee True or false? Basic economic concepts can be used to understand the…
A: The basic concepts of economics are very important to understand because it helps an individual or…
Q: Refer to the above table. Between years 1 and 2, real GDP grew by __________ percent in Alta:…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 1-Which of the following is an example of frictional unemployment? A mother who has gone back to…
A: Let's first learn about frictional unemployment. It is a type of Economy which can even take place…
Q: An award is being established, and itwill pay $11.200 every three years, with the fist installment…
A: C = 11,200 r = 3%
Q: 1. Given the following information: U= (1/3)X^Y*; Px = 6; Py= 6; I = 2,430, a. calculate the effect…
A: Disclaimer: The exponential power of Y in the utility function is not clear. I am assuming it is 4,…
Q: Which of the following components is not included in the M2 definition of money? A)…
A: The most used money aggregates M1, M2, M3 and M4 and they are segregated based on the the liquidity…
Q: As firms leave a monopolistically competitive industry that is sustaining economic losses: choose…
A: Brand differentiation and monopolistic competition are inextricably linked. A monopolistic…
Q: 3. Consider the following table that presents the labour requirements for production in the East and…
A: Since you have asked for multiple subparts, we would be answering the first 3 for you. To get the…
Q: PROBLEM-4: $200 million will be paid initially for a highway leased for 40 years. The highway will…
A: Given information Initial investment=$200 M Service cost=$2.5 M excluding year of maintenance and…
Q: Pa P. ATC P MC Demand Quantity MR Figure 15-15 shows the cost and demand curves for the Erickson F…
A: In monopoly, eqm Q(quantity) is found by the intersection of MC(marginal cost) and MR(marginal…
Q: Consider a market given by the following supply and demand equations MC=4+3Q WTP=99-5Q If the…
A: Price ceiling is the maximum legal price at which a good can be sold. When price ceiling is imposed,…
Q: Question 8 Which of the following statements about oligopolies is NOT correct? Group of answer…
A: An oligopoly refers to a market arrangement in which two or more companies control the market.They…
Q: Sukject Econometric Discuss how dum vasiable com be used to test (a) intescept ce2 changes and slope…
A: The link between two or more variables is investigated using regression analysis. The regression…
Q: . The price-supply and price-demand equations of a certain product are given by p = S(x) = 15 + 0.1x…
A: Given Demand equation: p=D(x)=M-Nx ..... (1) Supply equation:p=S(x)=15+0.1x+0.003x2…
Q: Selling Price Workers Total Wage Rate Per Day Output $75 $20 1. 16 $75 $20 28 $75 $20 37 $75 $20 4…
A: The measure that depicts an extra amount of output that is being produced from utilizing one…
Q: 3. A linking machine is purchased for #20,000. It is estimated to have a useful life of 10 years…
A: Sum-of-the- years-digit Method (SYD). This technique takes the asset's expected life and adds…
Q: Government gains revenue through (Click to select) vand expends money through [Click to select)…
A: The government's main source of earning money is tax collection. Other sources of earning money are…
Q: Explain how a price ceiling leads to excess demand or market shortage. Use a diagram to motivate…
A: Price ceiling The maximum legal pricing for a service or product is known as a price ceiling. A…
Q: ARE RAPID ECONOMIC GROWTH AS MEASURED BY GNI OR PER CAPITA INCOME CONFLICTS WITH A MORE EQUAL…
A: Economies undergo economic growth can be calculated Using two methods. Either it can be done using…
Q: Task 3. Solve for the money multiplier and money supply. Task 4. Solve for the impact on money…
A:
Q: the Lewis model, = 25 - 2L nere W = urban wage rate, L labor hired in the urban %3D anufacturing…
A: The Lewis model envisages that surplus labour can be transferred from the rural area to urban areas.…
Q: Explanation it correctly and in detail. Q)As long as there is free entry into a market:- A.…
A: If there is free entry and exit in the market, such markets generally have high competition due to…
Q: The Travel Industry Council of Hong Kong (TIC) was established in 1978 to protect the interests of…
A: The Travel Industry Council of Hong Kong known as (TIC) was established in 1978 to safeguard the…
Q: Question four A firm's production technology 40 = 10K0310.7 and capital costs K3 per week while…
A: "The cost minimizing input combinations of capital K and labor L occurs at a point where the ratio…
Q: Suppose the current level of output is. Y = $1,850. Are firms in this economy experiencing an…
A: The expenditure function also called the aggregate demand function, shows expenditure to be the sum…
Q: A competitive firm has a single factory with the cost function C(q) = 5q² + 79 and produces 32 units…
A: Answer is given below
Q: )Consider the market for loanable funds. If economic conditions are expected to become better, then…
A: In economics, the loanable funds tell the theory of the market interest rate. According to this…
Q: [Extended dynamic analysis] The market for wheat is affected by the recent unrest in Ukraine…
A: Market refers to the place where the buyers and sellers buy and sell goods and services in the…
Q: "Tiffany" is a retailer monopolist who makes a unique product called the "diamond ring" that…
A: Monopolistic Market Monopolistic is a form of market where there is a large number of buyers and…
Q: An award is being established, and t wil pay $11,200 every three years, with the fst instalment…
A: C = 11,200 r = 3%
Q: Demand is said to be elastic when the: select correct and explain A) percentage change in…
A: Demand is that quantity of commodity which a consumer is willing and able to buy at each possible…
Q: 5. The price of trade Suppose that France and Denmark both produce oil and stained glass. France's…
A: A country has a comparative advantage in production of a good when it is able to produce the good at…
Q: The people who live on Shangri-La Island consume only rice and fish. Last year, which was the…
A: Consumer price index(CPI): - it is a measure of change in the price level, it measures the change in…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- мсо 20 A profit-maximising firm produces homogenous (identical) units of output at a constant marginal cost and the units can be sold in two distinct market segments, which are segments A and B. On the assumption that the absolute value of the price elasticity of demand is lower in market segment A than it is in market segment B, if the firm decides to exercise price discrimination, we would expect to observe: A Ido not want to answer this question. В a higher price in market segment A to reflect the lower price elasticity the same price in both market segments since the marginal cost of production is the same for both markets and profits are maximised at MR = MC in both C markets D a higher price in market segment B to reflect the higher price elasticity E MR MC in market segment B because the higher elasticity allows a mark up of marginal revenue over marginal costb) The manager could have charged Joe a single price per round. How much extra profit does theclub earn by using two-part pricing?c) Joe marries Susan, who is also an enthusiastic golfer. Susan wants to join the Northlands Club.The manager believes that Susan’s inverse demand function is ? = 100 − 2?. The manager has apolicy of offering each member of a married couple the same two-part prices, so he offers themboth a new deal. What two-part pricing deal maximizes the club’s profit?d) Will this new pricing have a higher or lower access fee and per-unit fee than in Joe’s originaldeal? How much more would the club make if it charged Susan and Joe separate prices?As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that revealed two different demand curves at your movie theaters. On weekends the inverse demand function is PWeekend 15-0.001 QWeekend _ and on weekdays the inverse demand function is PWeekday 10 0.001 * QWeekday where Q is the number of movie goers and P is the price of a movie. You acquire legal rights from movie producers to show their films for $20,000 per movie, plus a $2 "royalty" for each movie-goer entering your theaters (the average moviegoer in your market watches a movie only once). MRWeekend 15 -0.002 QWeekend MRWeekday 10-0.002"QWeekday 1. What are the profit maximizing prices and quantities for Weekend and Weekday markets? 2. Draw the graphs of both the Weekend and Weekday markets and determine the optimum prices and quantities 3. What are the elasticities of demand for the Weekend…
- Consider any market that has a demand curve given by: Qd = 240 - 2P. Where Qd is the total quantity demanded in the market, given in millions of units and P is the market price, calculated in monetary units. Imagine that there are 2 Cournot oligopolists operating in this market with Cmg = CVme = 15 and fixed monthly costs equal to 1,400. About this market, ask yourself: a) What is the profit of each of the oligopolists? b) Imagine that one of the companies managed to implement a process innovation capable of halving its Cmg and CVme, so that they would go from 15 to 7.5. This investment implies an additional monthly expense of $1,800. Discuss the statement: "If this situation occurs, the innovative company will not implement variable cost reduction, as the quantity supplied in the market will increase very little; prices will remain very close to what they are today and its profits will not increase"Aidan and Celina are the only sellers of jack russell terrier (JRT) inAntigua. Celina chooses her profit maximizing number of JRTs to sell, q1, basedon the number of JRTs that she expects Aidan to sell. Aidan knows how Celinawill react and chooses the number of JRTs that she herself will sell, q2, aftertaking this information into account. The inverse demand function for JRTs isP(q1 + q2) = 2, 000 − 2(q1 + q2). It costs $400 to raise a JRT to sell.(a) Explain in detail what type of competitors are Aidan and Celina.(b) If Celina expects Aidan to sell q2 JRTs, what will her ownmarginal revenue be if she herself sells q1 JRTs?(c) What is Celina’s reaction function, R(q2)?(d) Now if Aidan sells q2 JRTs, what is the total number of JRTsthat will be sold?(e) What will be the market price as a function of q2 only?(f) What is Aidan’s marginal revenue as a function of q2 only?(g) How many JRTs will Aidan sell?(h) How many JRTs will Celina sell?(i) What will be the industry price?Aidan and Celina are the only sellers of jack russell terrier (JRT) inAntigua. Celina chooses her profit maximizing number of JRTs to sell, q1, basedon the number of JRTs that she expects Aidan to sell. Aidan knows how Celinawill react and chooses the number of JRTs that she herself will sell, q2, aftertaking this information into account. The inverse demand function for JRTs isP(q1 + q2) = 2, 000 − 2(q1 + q2). It costs $400 to raise a JRT to sell.(a) Explain in detail what type of competitors are Aidan and Celina.(b) If Celina expects Aidan to sell q2 JRTs, what will her ownmarginal revenue be if she herself sells q1 JRTs?(c) What is Celina’s reaction function, R(q2)?(d) Now if Aidan sells q2 JRTs, what is the total number of JRTsthat will be sold?(e) What will be the market price as a function of q2 only?(f) What is Aidan’s marginal revenue as a function of q2 only?(g) How many JRTs will Aidan sell?(h) How many JRTs will Celina sell?(i) What will be the industry price? ANSWER…
- Suppose the typical LA Rams fan has the following demand curve for Bills football games: P = 200 – 5G where G is the number of games the fans attend. Suppose the Bills have the chance to offer a various multi-game season ticket packages and tickets to individual games. If the Rams want to sell a particular fan single tickets to all eight home games, what price must they charge? $___ What should be the total price for a LA Rams 8-game season ticket package? $___ What should be the average ticket price for an LA Rams 4-game season ticket package? $___ Suppose the Rams have the opportunity to sell tickets to individual games. What price should they charge? $___10. The platypus is a shy and secretive animal that does not breed well in captivity. But two breeders, Sydney and Adelaide, have discovered the secret to platypus fer- tility and have effectively cornered the market. Zoos across the globe come to them to purchase their output; the world inverse demand for baby platypuses is given avby P=1,000-20, where Q is the combined output of blu Sydney (qs) and Adelaide (qA). vide a. Sydney wishes to produce the profit-maximizing quantity of baby platypus. Given Adelaide's choice of output, 9A, write an equation for the residual demand faced by Sydney. 19125 non c. ab. Derive Sydney's residual marginal revenue curve. Assume that the marginal and average total cost of raising a baby platypus to an age at which it can be sold is $200. Derive Sydney's reaction function. d. Repeat steps (a), (b), and (c) to find Adelaide's reac- tion function to Sydney's output choice. 18 e. Substitute Sydney's reaction function into Adelaide's to solve for…As a manager of a music venue (assume a monopoly market), you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your theater. On weekends, the inverse demand function is P = 24 − 0.0005Q; on weekdays, it is P = 20 − 0.0025Q. Each night you hire an act to play costs about $75,000 for the band, and about $5.00 per person (staff, food, drinks). Devise a pricing strategy to maximize your firm's profits.
- DaisyCo is an amusement park company using geographical segment pricing to increase profits. It charges different prices for its park entrance tickets in different countries. Marginal costs are identical in the two countries. After investigating the demand in country A and in country B, DaisyCo decided to charge a higher price in country B. which of the following statements is consistent with this decision? O Consumers in country A have a more elastic demand for amusement parks than consumers in country B O None of the other answers O Daisyco has lower fixed costs in country B as compared to country A O There are many similar amusement parks in country B, whereas there is only little competition in country A O Consultants concluded that the demand for amusement parks is more elastic in country B than in country AAidan and Celina are the only sellers of jack russell terrier (JRT) inAntigua. Celina chooses her profit maximizing number of JRTs to sell, q1, based on the number of JRT's that she expects Aidan to sell. Aidan knows how Celina will react and chooses the number of JRTs that she herself will sell, q2, aftertaking this information into account. The inverse demand function for JRTs isP(q1+ q2) = 2,000 - 2(q1 + q2). It costs $400 to raise a JRT to sell. (a)Explain in detail what type of competitors are Aidan and Celina. (b) If Celina expects Aidan to sell q2 JRTs, what will her own marginal revenue be if she herself sells q1 JRTs? (c) What is Celina's reaction function, R(q2)?(d) Now if Aidan sells q2 JRTs, what is the total number of JRT's that will be sold. (e) What will be the market price as a function of q2 only? (f) What is Aidan's marginal revenue as a function of q2 only? (g) How many JRTs will Aidan sell? (h) How many JRTs will Celina sell? (i)You are the Managing Director of Ghana Clins Ltd., a firm that supplies tissue paper for cars. Suppose your marketing department has compiled the following data on the price and quantity of tissue paper sold last month at 10 outlets in the Central Region of Ghana: Observation Quantity Price 1 180 475 2 590 400 3 430 450 4 250 550 5 275 575 6 720 375 7 660 375 8 490 450 9 700 400 10 210 500 Estimate the demand function for your firm. Interpret your answer by commenting on the marginal effect of a change in the product’s price How many units of your product will be demanded if the price is GHC 350.00? Given that your consultants have estimated the supply function to be: What will be the equilibrium price and quantity of your product? Estimate the elasticity of demand for your product at the equilibrium price and quantity. Interpret your answer. Based on the price elasticity of demand,…