if all consumers had identical demand curves,could producer price discriminate?
if all consumers had identical demand curves,could producer price discriminate?
Homework Answers
NO
There must be a different price elasticity of demand for each group of consumers for price discrimination to work. The firm is then able to charge a higher price to the group with a more price inelastic demand and a lower price to the group with a more elastic demand.
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if all consumers had identical demand curves,could
producer price discriminate?
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
Suppose that a price-searcher firm had consumers who were all identical to each other. The individual...
Suppose that a price-searcher firm had consumers who were all identical to each other. The individual consumer's demand function is given by: p= 20 -5P. The firm decides to try a second-degree price discrimination scheme. The first 9 units will have a price of $2.20. After that, any units a consumer purchases will be only $1.40. The firm has a constant marginal cost of $0.20 per unit. Calculate the consumer surplus. (Do not include a "S" sign in your response....
Question 11 Suppose that a price-searcher firm had consumers who were all identical to each other....
Question 11 Suppose that a price-searcher firm had consumers who were all identical to each other. The individual consumer's demand function is given by: qp- 40 -3P. The firm decides to try a second-degree price discrimination scheme. The first 18 units will have a price of $7.33. After that, any units a consumer purchases will be only $2.33. The firm has a constant marginal cost of $1.33 per unit. Calculate the consumer surplus. Tries remaining:2 Points out of 8.33 Flag...
What are the welfare of using coupons to price discriminate? (Consumer, producer, social) What can the...
What are the welfare of using coupons to price discriminate? (Consumer, producer, social) What can the government do to regulate the use of coupons?
1. A market has supply and demand curves that follow the following set of equations: Supply...
1. A market has supply and demand curves that follow the following set of equations: Supply P = 30s + 6 Demand P = -20p + 146. For both of these problems pictures are not required but the problems may be much easier if you draw some. a) Find the equilibrium price and quantity in this market and the consumer and producer surplus from the equilibrium price and quantity. (1 point) b) If there is a ceiling price in this...
If a firm could perfectly price discriminate A. There would be no marginal revenue function B....
If a firm could perfectly price discriminate A. There would be no marginal revenue function B. The marginal revenue curve would lie below the demand curve C. The marginal revenue curve would lie above the demand curve D. The marginal revenue curve would be the same as the demand curve
The demand and supply curves for a product are given in terms of price, p, by...
The demand and supply curves for a product are given in terms of price, p, by q = 2600 - 20p and q = 10p - 400 A. Find the equilibrium price and quantity. B. A specific tax of $12 per unit is imposed on suppliers. Find the new equilibrium price and quantity. The new equilibrium price (including tax) is $______ and the new equilibrium quantity is ______ units. C. How much of the $12 tax is paid by consumers...
Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market demand curve:...
Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market demand curve: P = 120 − Q. The monopolist has constant marginal cost of $20 and zero fixed cost. (a) Determine the monopolist’s profit maximizing quantity, denoted QM, and profit maximizing price, denoted PM. (b) Determine the quantity and price that would result in the market if this instead were a competitive market, denoted QC and PC, respectively. (c) Draw a picture of the market demand...
Sketch possible supply and demand curves where the consumer surplus at the equilibrium price is (a)...
Sketch possible supply and demand curves where the consumer surplus at the equilibrium price is (a) Greater than the producer surplus (b) Less than the producer surplus
Help Which one of the following is not a non-price determinant of demand? Select one: a. The number of consumers b. Producer expectations of future prices c. Tastes and preferences d. Prices of r...
Help Which one of the following is not a non-price determinant of demand? Select one: a. The number of consumers b. Producer expectations of future prices c. Tastes and preferences d. Prices of related goods and services e. Available assets
Help Which one of the following is not a non-price determinant of demand? Select one: a. The number of consumers b. Producer expectations of future prices c. Tastes and preferences d. Prices of related goods and services e. Available assets
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
Suppose that a price-searcher firm had consumers who were all identical to each other. The individual consumer's demand function is given by: p= 20 -5P. The firm decides to try a second-degree price discrimination scheme. The first 9 units will have a price of $2.20. After that, any units a consumer purchases will be only $1.40. The firm has a constant marginal cost of $0.20 per unit. Calculate the consumer surplus. (Do not include a "S" sign in your response....
Question 11 Suppose that a price-searcher firm had consumers who were all identical to each other. The individual consumer's demand function is given by: qp- 40 -3P. The firm decides to try a second-degree price discrimination scheme. The first 18 units will have a price of $7.33. After that, any units a consumer purchases will be only $2.33. The firm has a constant marginal cost of $1.33 per unit. Calculate the consumer surplus. Tries remaining:2 Points out of 8.33 Flag...
1. A market has supply and demand curves that follow the following set of equations: Supply P = 30s + 6 Demand P = -20p + 146. For both of these problems pictures are not required but the problems may be much easier if you draw some. a) Find the equilibrium price and quantity in this market and the consumer and producer surplus from the equilibrium price and quantity. (1 point) b) If there is a ceiling price in this...
Help Which one of the following is not a non-price determinant of demand? Select one: a. The number of consumers b. Producer expectations of future prices c. Tastes and preferences d. Prices of related goods and services e. Available assets
Help Which one of the following is not a non-price determinant of demand? Select one: a. The number of consumers b. Producer expectations of future prices c. Tastes and preferences d. Prices of related goods and services e. Available assets
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