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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
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c. What are the firm's profits if it charges the two
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55
b. What are the profits of the firm if it charges a single
50
45
price?
40
35
30
25
MC
20
$
1225
15
10
MR
D
Suppose the monopolist able to successfully price
discriminate between two groups by charging one group
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100
Quantity
$
60 and charging $35 to the other group.
c. What are the firm's profits if it charges the two prices as
mentioned above?
1425
Incorrect
Price and Costs($)"
Transcribed Image Text:60
55
b. What are the profits of the firm if it charges a single
50
45
price?
40
35
30
25
MC
20
$
1225
15
10
MR
D
Suppose the monopolist able to successfully price
discriminate between two groups by charging one group
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100
Quantity
$
60 and charging $35 to the other group.
c. What are the firm's profits if it charges the two prices as
mentioned above?
1425
Incorrect
Price and Costs($)
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- 1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.arrow_forwardWhat is price discrimination? From the perspective of running a business, is this a good thing or bad thing for profits?arrow_forwardA) What is the profit-maximizing price? B) What is the profit-maximizing quantity? C) What is total revenue at the profit-maximizing quantity?arrow_forward
- Even before the pandemic, bicycle supply chains were strained. Why was this? Check all that apply. Falling barriers increase the bargaining power of business firms by decreasing the incomes of consumers. Many bikes are made in China, and former President Trump's high tariff rate forced manufacturers to find alternate production locations. O Making bikes is still an artisanal process, so craft bike makers could not keep up with the demand. Americans prefer to drive gas trucks rather than bike.arrow_forwardWhy won't perfectly competitve charge a price lower than the equilibrium price?arrow_forwarddont use chatgpt i will 10 upvotesarrow_forward
- Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: "Price discrimination is not possible when a good is sold in a perfectly competitive market." False, because perfectly competitive firms do not profit maximize by setting marginal revenue equal to marginal cost None of these choices True, because perfectly competitive firms have no market power False, because perfectly competitive firms have market power Which of the following kinds of price discrimination occurs when each customer in a single market is charged the maximum price he or she is willing to pay? Perfect price discrimination Third-degree price discrimination Second-degree price discrimination ○ This is not an example of price discriminationarrow_forwardI need help finding Michael Economics profit?arrow_forward
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