Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 13.5, Problem 4RQ
To determine
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Imagine you are the owner of the Omaha
Surfboard Company. You have a branch in
Omaha and in Long Beach CA. After some
market research you find the following
surfboard demand for each market, Omaha
Demand: Qo = 1000 – 10P Long Beach
Demand: QL = 1000 – 5P Combined/Total
Demand: Q = 2000 – 15P Your marginal cost
is constant at $40.
a. Find your price and quantity if you treated
the market as a single entity with a single
price. What is your profit? (Hint: find Marginal
Revenue and set equal to MC)
b. If you treat each market separately, what is
P and Quantity in each market, and final
profit?
Define price discrimination. Give two examples of price discrimination. How does perfect price discrimination affect consumer surplus, producer surplus and total surplus?
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.
Quantity
Price
Total Revenue
(Gallons)
(Dollars per gallon)
(Dollars)
8
50
7
350
100
600
150
750
200
4
800
250
3
750
If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes would be most profitable for the sellers?
Each seller will sell 30 gallons and charge a price of $5.
Each seller will sell 50 gallons and charge a price of $3.
Each seller will sell 30 gallons and charge a price of $4.
Each seller will sell 40 gallons and charge a price of $4.
O O
Chapter 13 Solutions
Microeconomics (13th Edition)
Ch. 13.1 - Prob. 1RQCh. 13.1 - Prob. 2RQCh. 13.1 - Prob. 3RQCh. 13.2 - Prob. 1RQCh. 13.2 - Prob. 2RQCh. 13.2 - Prob. 3RQCh. 13.2 - Prob. 4RQCh. 13.3 - Prob. 1RQCh. 13.3 - Prob. 2RQCh. 13.3 - Prob. 3RQ
Ch. 13.3 - Prob. 4RQCh. 13.4 - Prob. 1RQCh. 13.4 - Prob. 2RQCh. 13.4 - Prob. 3RQCh. 13.4 - Prob. 4RQCh. 13.5 - Prob. 1RQCh. 13.5 - Prob. 2RQCh. 13.5 - Prob. 3RQCh. 13.5 - Prob. 4RQCh. 13 - Prob. 1SPACh. 13 - Prob. 2SPACh. 13 - Prob. 3SPACh. 13 - Prob. 4SPACh. 13 - Prob. 5SPACh. 13 - Prob. 6SPACh. 13 - Prob. 7SPACh. 13 - Prob. 8SPACh. 13 - Prob. 9SPACh. 13 - Prob. 10APACh. 13 - Prob. 11APACh. 13 - Prob. 12APACh. 13 - Prob. 13APACh. 13 - Prob. 14APACh. 13 - Prob. 15APACh. 13 - Prob. 16APACh. 13 - Prob. 17APACh. 13 - Prob. 18APACh. 13 - Prob. 19APACh. 13 - Prob. 20APACh. 13 - Prob. 21APACh. 13 - Prob. 22APACh. 13 - Prob. 23APACh. 13 - Prob. 24APACh. 13 - Prob. 25APA
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