True or False. Two part tariffs always involve setting the price per unit above marginal cost.
True or False. Two part tariffs always involve setting the price per unit above marginal cost.
Homework Answers
Explanation:-TPT or two part tariff is a system of price descrimination ,here the price of the product or services is composed of two part. That is lumps-sum fees and per unit charge .The two part tariff system arises fully or partially in monopolistic market.In the two part system firms must set the entrance fee and the price per unit of the product that maximizes its profit.For maximize the amount of product purchased by the consumer the firm must set a price that is equal to the marginal cost.
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True or False. Two part tariffs always involve setting the price
per unit above marginal cost.
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E...
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E Quantity (per period) The figure above shows a market failure. Based on the figure, what is true if production is at level G? Price is equal to marginal cost and greater than marginal benefit. Marginal benefit is equal to marginal cost. Marginal benefit is less than marginal cost. Marginal benefit is greater than marginal cost. QUESTION 62 с Price per unit $25 and marginal...
two price-taking firms compete by setting quantities of output, then Select one: O a marginal revenue...
two price-taking firms compete by setting quantities of output, then Select one: O a marginal revenue is the same as the market price. b. social surplus will be maximized. O c. the market price will be climater than marginal cost. Od they will produce the same amount of output as in perfect competition. If a firm sells its output on a market that is characterized by many sellers and buyers, a differentiated product, and unlimited long run resource mobility, then...
Classify each of the statements as true or false True False Answer Bank Marginal utility is...
Classify each of the statements as true or false True False Answer Bank Marginal utility is always positive. Numerical utility values are relatively easy to calculate. Diminishing marginal utility means that consumption of an additional unit decreases utility. Marginal utility is the extra satisfaction experienced by one additional unit of consumption Marginal utility is always negative. Utility is a measure of the satisfaction people receive from their choices If you eat a slice of pizza that gives you food poisoning....
Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no...
Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms' products as perfect substitutes. The market demand is Q = 90 - p. In Bertrand equilibrium, firm 1's price is $_and firm 2's price is $ . (Enter numeric responses using integers.)
The variable cost per unit depends on how many units are produced. True or False True...
The variable cost per unit depends on how many units are produced. True or False True True False False
Marginal cost 14 Price = Marginal revenue Price or Cost(dollars per bushel) Quantity (bushels of fish...
Marginal cost 14 Price = Marginal revenue Price or Cost(dollars per bushel) Quantity (bushels of fish per day) Number of Bushels per Day Price Total Revenue Total Cost Total Profit Marginal Marginal Revenue Cost $13 $10 $-10 15 $13 31 44 61 If the price of catfish changed from $13 to $14 per bushel, determine the Instructions: in parts a and c, enter your responses as a whole number. In part b.round your response to two decimal places. If you...
True or false 7. The marginal rate of substitution is always the same constant number when...
True or false 7. The marginal rate of substitution is always the same constant number when the goods are imperfect substitutes and no matter how many of each good is being consumed.
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
True or False 1. For a fatigue failure, a part always fails above the ultimate strength...
True or False 1. For a fatigue failure, a part always fails above the ultimate strength of the material. 2. For a ductile material, the tensile yield strength and the compressive yield strength are not equal 3. Mode I of crack propagation occurs due to compressive stress 4. Distortion energy theory is used to predict failure for brittle materials 5. Temperature does not affect the endurance limit of a material 6. For a fatigue failure, a part always fails above...
True/False Questions 14. If both generate the same tax revenue, a unit tax induces greater quantity...
True/False Questions 14. If both generate the same tax revenue, a unit tax induces greater quantity distortion than an ad valorem tax 15. Market power always reduces overall welfare. 16. Mark up is the amount charged above marginal cost. 17. When a firm uses quantity discrimination (block pricing), it is the high quantity purchasers who pay a higher price per unit. 18. A Nash Equilibrium occurs when players do not have reason to deviate given the action of their opponent....
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E Quantity (per period) The figure above shows a market failure. Based on the figure, what is true if production is at level G? Price is equal to marginal cost and greater than marginal benefit. Marginal benefit is equal to marginal cost. Marginal benefit is less than marginal cost. Marginal benefit is greater than marginal cost. QUESTION 62 с Price per unit $25 and marginal...
two price-taking firms compete by setting quantities of output, then Select one: O a marginal revenue is the same as the market price. b. social surplus will be maximized. O c. the market price will be climater than marginal cost. Od they will produce the same amount of output as in perfect competition. If a firm sells its output on a market that is characterized by many sellers and buyers, a differentiated product, and unlimited long run resource mobility, then...
Classify each of the statements as true or false True False Answer Bank Marginal utility is always positive. Numerical utility values are relatively easy to calculate. Diminishing marginal utility means that consumption of an additional unit decreases utility. Marginal utility is the extra satisfaction experienced by one additional unit of consumption Marginal utility is always negative. Utility is a measure of the satisfaction people receive from their choices If you eat a slice of pizza that gives you food poisoning....
Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms' products as perfect substitutes. The market demand is Q = 90 - p. In Bertrand equilibrium, firm 1's price is $_and firm 2's price is $ . (Enter numeric responses using integers.)
The variable cost per unit depends on how many units are produced. True or False True True False False
Marginal cost 14 Price = Marginal revenue Price or Cost(dollars per bushel) Quantity (bushels of fish per day) Number of Bushels per Day Price Total Revenue Total Cost Total Profit Marginal Marginal Revenue Cost $13 $10 $-10 15 $13 31 44 61 If the price of catfish changed from $13 to $14 per bushel, determine the Instructions: in parts a and c, enter your responses as a whole number. In part b.round your response to two decimal places. If you...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
True/False Questions 14. If both generate the same tax revenue, a unit tax induces greater quantity distortion than an ad valorem tax 15. Market power always reduces overall welfare. 16. Mark up is the amount charged above marginal cost. 17. When a firm uses quantity discrimination (block pricing), it is the high quantity purchasers who pay a higher price per unit. 18. A Nash Equilibrium occurs when players do not have reason to deviate given the action of their opponent....
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