Homework Answers
Peak price and peak quantity both are higher than the off peak quantity and the off peak price. This is because the demand is higher in the peak period and this generates a greater marginal revenue for a given marginal cost.
True. In both the cases the entire consumer surplus is considered as a profit. The price of the block in block pricing and the admission fee charged in two part pricing is composed of this consumer surplus
When the price is 6000 dollars the quantity is 100 units. Elasticity = 1/slope*P/Q or -1/20*6000/100 = -3. None of the answer is correct
Add Answer to:
Which of the following statements is correct regarding the peak-load pricing strategy? The off-peak price and...
Which of the following statements is correct regarding the Sweezy model of oligopoly? Competitors match price...
Which of the following statements is correct regarding the Sweezy model of oligopoly? Competitors match price increases but do not match price decreases. The flatter portion of the demand curve corresponds to the quantity range where competitors match price changes. The firm faces more elastic demand when it lowers its price than when it raises its price. None of the statements listed is correct. The marginal revenue curve of the firm is horizontal. Question 22 1 pts Assume that the...
Gotham Bridge and Tunnel Authority practices peak-load pricing. During peak hours when bridges are at capacity...
Gotham Bridge and Tunnel Authority practices peak-load pricing. During peak hours when bridges are at capacity and the price elasticity of demand is −3, Gotham charges $25 per bridge crossings. During off-peak hours the price elasticity of demand is −5. How much should Gotham charge during off-peak hours to maximize profit? $18 $24 $20 $21 There is not enough information to answer this question.
A firm charges $40 per unit for the first three units of a good purchased, and...
A firm charges $40 per unit for the first three units of a good purchased, and $20 for each additional unit thereafter. The firm’s marginal cost and average total cost are both constant at $15. A consumer purchases six units. How much profit will the firm earn? Group of answer choices $70 $110 $90 $80 $50 2. Suppose there are two types of consumers for cell phones and accessories (cases, extra chargers, etc.) Consumers of type A are willing to...
Question 9 1 pts Which of the following is correct regarding penetration pricing? There is more...
Question 9 1 pts Which of the following is correct regarding penetration pricing? There is more than one answer to this question. You must mark all of the answers to receive full credit for this question. It is a strategy that is commonly found among perfectly competitive firms. It is used by firms with a long history in an industry that try to capture sales from new firms that are entering the industry. It is a strategy that is defined...
(a) Graphically illustrate and explain a firm engaging in intertemporal price discrimination. 7. (b) Graphically illustrate and explain a firm engaging in peak-load pricing. (c) A monopolist firm...
(a) Graphically illustrate and explain a firm engaging in intertemporal price discrimination. 7. (b) Graphically illustrate and explain a firm engaging in peak-load pricing. (c) A monopolist firm faces a demand with constant elasticity of -2.0. It has a constant marginal cost of $20 per unit and sets a price to maximize profit. If marginal cost increases by 25%, what would be the change in price level?
(a) Graphically illustrate and explain a firm engaging in intertemporal price discrimination. 7....
Which of the following is correct regarding penetration pricing? There is more than one answer to...
Which of the following is correct regarding penetration pricing? There is more than one answer to this question. You must mark all of the answers to receive full credit for this question. It is a temporary pricing strategy intended to quickly attract consumers to a firm. It is a strategy that is commonly found among perfectly competitive firms. It is used by firms to overcome network effects of well- established firms. It is used by firms with a long history...
Which of the following is correct regarding the limit pricing model? There is more than one...
Which of the following is correct regarding the limit pricing model? There is more than one answer to this question. You must mark all of the correct answers to receive full credit for this question. At the limit price and corresponding quantity, the residual demand is zero. The residual demand is how much is left over of the total market demand after accounting for the amount produced by the incumbent. The best that a new entrant can do when an...
With which of the following does the firm identify a key quantity by setting marginal cost...
With which of the following does the firm identify a key quantity by setting marginal cost equal to price? two-part pricing and third-degree price discrimination block pricing and commodity bundling O block pricing and two-part pricing first degree price discrimination (continuous variable case) and commodity bundling second-degree price discrimination and third-degree price discrimination Question 25 1 pts Assume the inverse demand function for a Bertrand oligopoly is P = 500 - Q/5, and that the firm's total cost function is...
Which of the following statements about the price elasticity of demand is correct?
Question 5 Which of the following statements about the price elasticity of demand is correct? The absolute value of the elasticity of demand ranges from zero to one. The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. Demand is more elastic the smaller the percentage of the consumer's budget the item takes up. Demand is more elastic in the long run than it is in the short run. Question 6 The cross-price elasticity...
Assume a first estimate their price elasticity of demand (EQxPx) to be -3.5, and their marginal...
Assume a first estimate their price elasticity of demand
(EQxPx) to be -3.5, and their marginal cost to be $15.
3. Assume a firm estimate their price elasticity of demand (EQxPx) to be -3.5, and their marginal cost to be $15. a. Using the mark-up rule, what is the optimal price for the firm to charge? 2 points b. Confirm that your answer above is correct, by computing the profit maximizing quantity and price using MR = MC if the...
Which of the following statements is correct regarding the Sweezy model of oligopoly? Competitors match price increases but do not match price decreases. The flatter portion of the demand curve corresponds to the quantity range where competitors match price changes. The firm faces more elastic demand when it lowers its price than when it raises its price. None of the statements listed is correct. The marginal revenue curve of the firm is horizontal. Question 22 1 pts Assume that the...
Question 9 1 pts Which of the following is correct regarding penetration pricing? There is more than one answer to this question. You must mark all of the answers to receive full credit for this question. It is a strategy that is commonly found among perfectly competitive firms. It is used by firms with a long history in an industry that try to capture sales from new firms that are entering the industry. It is a strategy that is defined...
(a) Graphically illustrate and explain a firm engaging in intertemporal price discrimination. 7. (b) Graphically illustrate and explain a firm engaging in peak-load pricing. (c) A monopolist firm faces a demand with constant elasticity of -2.0. It has a constant marginal cost of $20 per unit and sets a price to maximize profit. If marginal cost increases by 25%, what would be the change in price level?
(a) Graphically illustrate and explain a firm engaging in intertemporal price discrimination. 7....
Which of the following is correct regarding penetration pricing? There is more than one answer to this question. You must mark all of the answers to receive full credit for this question. It is a temporary pricing strategy intended to quickly attract consumers to a firm. It is a strategy that is commonly found among perfectly competitive firms. It is used by firms to overcome network effects of well- established firms. It is used by firms with a long history...
Which of the following is correct regarding the limit pricing model? There is more than one answer to this question. You must mark all of the correct answers to receive full credit for this question. At the limit price and corresponding quantity, the residual demand is zero. The residual demand is how much is left over of the total market demand after accounting for the amount produced by the incumbent. The best that a new entrant can do when an...
With which of the following does the firm identify a key quantity by setting marginal cost equal to price? two-part pricing and third-degree price discrimination block pricing and commodity bundling O block pricing and two-part pricing first degree price discrimination (continuous variable case) and commodity bundling second-degree price discrimination and third-degree price discrimination Question 25 1 pts Assume the inverse demand function for a Bertrand oligopoly is P = 500 - Q/5, and that the firm's total cost function is...
Assume a first estimate their price elasticity of demand
(EQxPx) to be -3.5, and their marginal cost to be $15.
3. Assume a firm estimate their price elasticity of demand (EQxPx) to be -3.5, and their marginal cost to be $15. a. Using the mark-up rule, what is the optimal price for the firm to charge? 2 points b. Confirm that your answer above is correct, by computing the profit maximizing quantity and price using MR = MC if the...
Most questions answered within 3 hours.
-
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 2 minutes ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 5 minutes ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 24 minutes ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 23 minutes ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 25 minutes ago -
what is the density ( in g/L) of hydrogen gas at 29 degrees C and a...
asked 34 minutes ago -
5-6. You are considering three investment alternatives for some
spare cash: Old Reliable Corporation stock (A1),...
asked 26 minutes ago -
Problem 16-02
Receivables Investment
Medwig Corporation has a DSO of 45 days. The company averages
$7,250...
asked 41 minutes ago -
Mr. Brown hired Lowe's Maintenance Services Limited to repair
and paint the exterior wall of his...
asked 41 minutes ago -
When might an index slow down the overall performance of the
database? Choose the best answer....
asked 46 minutes ago -
Due to a recession, expected inflation this year is only 2.25%.
However, the inflation rate in...
asked 48 minutes ago -
Write four functions: (IN PYTHON 3)
1) bound(l) - given a list of integers l, compute...
asked 50 minutes ago