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- 5. CostCo is a retail outlet that requires members to pay an annual fee to access its stores. However, once this fee has been paid, customers can buy any number of goods at a relatively lower price per unit. This is an example of... (a) Perfect price discrimination (b) Segmentation (c) Bundling (d) Two-part pricing (e) Quantity discounts (f) Versioning Answer: 5d. 6.11Elasticity and Revenue ($) Price 9 87854 6 GRAPH P₁ 3 2 1 0 10 20 30 40 50 60 70 80 90 Quantity (per week) SETTINGS Demand More Inelastic Reset More Elastic ($) Expenditure 100 1 90 80 70 60 50 40 30 20 10 P₁ TR 0 10 20 30 40 50 60 70 80 90 DATA Quantity (per week) Demand: P = $6.00 - 0.100(Qd) RetuFor the demand equation, express the total revenue R as a function of the price p per item. q=-5p+1000 R(p) = Sketch the graph of the resulting function. O No Solution Help 20 90000 80000 70000 60000 50000 40000 30000 20006 10000 20 40 60 50 100 120 140 160 180 200 220 240 260 280 -1/000+4 51 WebAssign. Graphing Tool Determine the price p (in dollars) that maximizes total revenue. p = $ Graph Layers After you add an object to the graph you can use Graph Layers to view and edit its properties.
- 14-2 German Brothels German brothels recently began offering a monthly subscription service for multiple purchasers. If you wished to reduce the incidence of prostitution, would you consider this pricing plan to be a desirable change?The demand function for SkanDisc 2GB thumb drives is given by p- 4(x + 3) e"/a where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Compute the price, p, when x 6. Do not round your answer. Price, p- 36e dollars Use implicit differentiation to compute the rate of change of demand with respect to price, p, when x- 6. Do not round your answer. Rate of change of demand, x' x thousands of units per dollar Compute the elasticity of demand when x - 6. Do not round your answer. Elasticity of Demand-Research has found that used-car salesmen often offer women buyers a higher price than male buyers. This is most likely because: (a) the second-hand car market allows first-degree price discrimination. (b) the second-hand car market allows second-degree price discrimination. (c) the second-hand car market allows third-degree price discrimination. (d) used-car salesmen usually find it easier to determine the reservation prices of male buyers than of women buyers.
- (1) what is an example of price discrimination that you have experienced ? is this price diesccrimination beneficial to consumers ? why yes or why no?2. Acme Pharmaceutical Company discovers a vaccine that prevents the common cold and has a patent that grants it a monopoly on this drug. Acme has plants in both the North America and Europe and can manufacture the drug on either continent at a marginal cost of $10. Assume there are no fixed costs. In Europe, the demand for the drug is QE = 70 - PE, where QE is the quantity demanded when the price in Europe is PE. In North America the demand for the drug is QN = 110 - PN, where QN is the quantity demanded when the price in North America is PN (a) Determine the aggregate demand function for the combined mar- ket. Determine the inverse demand function for the combined market and the inverse demand functions for each of the two mar- kets separately. (b) To begin, assume that it is illegal for the firm to price discriminate, so that it can charge only a single price P on both continents. What price will it charge, and what profits will it earn?Suppose you own a tax preparation services company, with fixed costs of $3,000/month and marginal costs of $25/appt.If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760appointments would be sold. a.)Use these figures to calculate the price elasticity of demand for your services. b.)Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt. c.)Given these calculations, what price should you charge for your services, $50/apptor $60/appt? Explain
- An analyst for FoodMax estimates that the demand for its "Brand X" potato chips is given by: Inoxd = 12.45 - 3.3 In Px+ 3.9Py+ 1.5 In Ax where Qx and Px are the respective quantity and price of a four-ounce bag of Brand X potato chips, Pyis the price of a six-ounce bag sold by its only competitor, and Axis FoodMax's level of advertising on brand X potato chips. Last year, FoodMax sold 5 million bags of Brand X chips and spent $0.35 million on advertising. Its plant lease is $2.5 million (this annual contract includes utilities) and its depreciation charge for capital equipment was $2.9 million; payments to employees (all of whom earn annual salaries) were $0.9 million. The only other costs associated with manufacturing and distributing Brand X chips are the costs of raw potatoes, peanut oll, and bags; last year FoodMax spent $2.6 million on these items, which were purchased in competitive input markets. Based on this information, what is the profit-maximizing price for a bag of Brand X…Problem 07-03 (algo) Suppose the own price elasticity of market demand for retail gasoline is -0.6, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,800,000 annually. What is the price elasticity of demand for a representative gasoline retailer's product? Instruction: Enter your response rounded to two decimal places. If entering a negative number, be sure to use the negative (-) sign.ments/497668 ignments > 25. Elasticity of Demand sticity of Demand Interpret elasticity of demand Question Suppose that the price p of a product and its demand x are related through the price-demand equation x+ 400p = 8,000. We're interested to find all the values of p such that the demand is inelastic. Which of the following gives the correct region? Select the correct answer below: O {plp 10} Previous 43% 2P PrtSc Insert Delete F6 F7 F8 F9 F10 F11 F12 F3 F4 F5 23 ) Backspac 3 4. 8 9- { + II И %24