help A price discriminating firm is currently selling its product to two groups of consumers, A and B.[13]The price elasticity on the part of consumer group A equals -3, while the price elasticity on the part ofconsumer group B equals -2. Accordingly, in order to increase profit, this firm should:increase sales to group A and decrease sales to group B.decrease sales to group A and increase sales to group B.А.В.C.maintain sales at current levels.D.all of the above are possible, as not enough information is provided to determine the optimalallocation of sales across the two groups.[14]Blockaded entry occurs when the incumbent does not have to sacrifice any profit to deter entry.A.TrueВ.False[15]Which of the following are strategic entry deterrents?А.В.engaging in price arbitragesetting long retaliatory lagsdifferentiating your productС.D.All of the aboveIn the case of dynamic limit pricing, an incumbent gradually raises price over time in an effort to[16]reduce the rate of entry.A.TrueВ.False[17]sells each batch at a unique price.Second degree price discrimination occurs when a firm divides its output into successive batches andA.TrueВ.False[18]The Sylos Postulate assumes the market price will remain the same whether or not entry occurs inthe market.А.TrueВ.False

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[13] A price discriminating firm is currently selling its product to two groups of consumers, A and B. The price elasticity on the part of consumer group A equals -3, while the price elasticity on the part of consumer group B equals -2. Accordingly, in order to increase profit, this firm should: А. increase sales to group A and decrease sales to group B. decrease sales to group A and increase sales to group B. maintain sales at current levels. В. С. all of the above are possible, as not enough information is provided to determine the optimal allocation of sales across the two groups. D.

[13] A price discriminating firm is currently selling its product to two groups of consumers, A and B. The price elasticity on the part of consumer group A equals -3, while the price elasticity on the part of consumer group B equals -2. Accordingly, in order to increase profit, this firm should: А. increase sales to group A and decrease sales to group B. decrease sales to group A and increase sales to group B. maintain sales at current levels. В. С. all of the above are possible, as not enough information is provided to determine the optimal allocation of sales across the two groups. D.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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