The answer should not be image uploaded please Charlie has invented an ice cream that never melts. Asit is the first of its kind and currently hard to replicate,Charlie operates as a profit maximising monopolist. Hismarginal cost of production for each tub of ice-creamis $18 per tub. Below is a table of potential prices hecould charge for each tub of ice cream and thecorresponding quantities. Price ($/tub) Quantity (tubs) 30 10 28 20 26 30 24 40 22 50 20 60 What isCharlie's profit maximising quantity? Answer to thenearest whole number of tubs (with no decimal places)

Ans. ) Given the question, that Charlie has invented an ice-cream that never melts. As it is hard to…

Answered: Charlie has invented an ice cream that…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 13P

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itle A reliable 15-year-old babysitter can be a price maker within her own neighborhood. Suppose that th Description A reliable 15-year-old babysitter can be a price maker within her own neighborhood. Suppose that this babysitter wishes to implement a Multipart Pricing Plan. Customers who use her services less than L hours per month will pay a high price of PH dollars per hour. Customers who use her services more than L hours per month will still pay PH dollars for the first L hours, but for any additional hours they can then pay the lower price PL dollars per hour which she will generously set equal to her marginal cost. Assume that market demand is QD = 60 – 10P and her total costs are C = 3Q; so PL = $3 per hour. If she set her high price at $4 per hour, would her customers accept a limit of L = 24 hours per month in order to use the remainder of her services at a price of $3 an hour? Provide a labelled diagram and briefly explain. Suppose that this talented babysitter was…
Explain the methods used toallocate the integratedmarketing communications(IMC) budget.
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uestlon 4 Of 16 A monopolistic competitor wishing to maximize profit will select a quantity where marginal cost equals demand. marginal cost equals average cost. marginal revenue equals average cost. O marginal revenue equals marginal cost. If a firm is producing a quantity where marginal revenue exceeds marginal costs, the firm should existing levels of production in order to expand ; decrease total costs O expand ; increase profitability decrease ; increase total revenue decrease ; increase profitability If a firm is producing a quantity where marginal cost exceeds marginal revenue, the firm should existing levels of production in order to decrease ; increase profitability expand ; decrease total costs O expand ; increase profitability decrease ; increase total revenue
(c) A discriminating monopolist is faced with the following price elasticities: e1-0.75 and What pricing policy should the monopolist adopt in the two markets? In which market will it be profitable for the monopolist to operate? Assume now that er ez 0.50, will it be advisable for the monopolist to discriminate or operate a single market? run. Briefly explain why the monopolist has no unique supply curve in the short Unlike the competitive firm, the monopoly firm can make supernormal profit in the long run. Explain why. e-1.50 i. ii. iii. iv. V.
Study Tools ins ess Tips ss Tips PRICE (Dellars per engine) 288 RSS #RR 100 50 30 20 10 MO 0 0 10 ATC MR Demand 20 30 40 50 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unt Cost Decause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrum by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimum
Give at least 5 point in difference and correct ans Distinguish between marginal pricing and cost-plus pricing.
Please solve Fast i give 2 like The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.5 for tickets at Movies Plus and adults have an own price elasticity of 1.2. If the managers have correctly determined the third-degree profit-maximizing price for adults is $15, what is the third-degree profit-maximizing price to charge students? Group of answer choices (1)$13.50 (2)$10.00 (3)$7.50 (4)$8.50
Why are generic pharmaceuticals significantly cheaper than name brand ones?
Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to atlend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the Lime of attendance and willingness to pay for a ticket. Maximum willingness Time of Customer to pay attendance Brandon $4 matinee Tyler $35 evening Austin S10 evening Alexis $7 matinee Ashley $12 evening Emily $12 matinee What should the theater charge for evening lickets? 20 Incorrect What should the theater charge for matinee tickets? 24
Review Question 12-01 O A monopolistically competitive firm gets a massive amount of free advertising when a government agency gives it an award and millions of people mention the award to each other on social media. Which of the following is most likely to happen? Mc Graw Multiple Choice O Demand becomes more elastic and pricing power increases. Demand becomes less elastic and pricing power decreases. Demand becomes less elastic and pricing power increases. Demand becomes more elastic and pricing power decreases. < Prev 10 of 10 MacRook Di Next
Exercise A.3 Compare the competitive equilibrium with that of the first-degree price discriminating monopolist. Indicate the similarities and differences that exist in prices, quantities produced, consumer surplus and loss of efficiency between both situations. Represent graphically assuming that the marginal cost is constant

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