Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 12, Problem 9P
(a)
To determine
The price charged and the profit earned by a monopolist by not engaging in
(b)
To determine
The price charged and the profit earned by the monopolist by engaging in price discrimination.
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Each consumer has the following demand for annual visits to Planet Fitness: Q = 200 - P (or P = 200 - Q), where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer?
Annual fee = $18,050; P = $0 for each visit.
Annual fee = $20,000; P = $0 for each visit.
Annual fee = $18,050; P = $10 for each visit.
Annual fee = $20,000; P = $10 for each visit.
what are pricing tactics and examples? What are some forms of price discriminations?
List two things that first-order price discrimination and two-part tariff have in common.
Chapter 12 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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