a) If the salon charges a single price of $15, what will its total daily revenue be? Total daily revenue: S b. b) Suppose, instead, that the salon practises price discrimination and now charges $21 for haircuts to regulars but only $15 to retirees and economics instructors. What will its new total daily revenue be? New total daily revenue: $ c) What is the value of consumer surplus that the salon has captured as a result of price discriminating? Consumer surplus: S

Q: Assume that the market demand for water is P = 8 – 3Q, and marginal cost (in dollars) of supplying…

A: A monopoly is the sole producer of a good thus having maximum market power hence acts as a price…

Q: A cinema has a capacity of 250 seats. Suppose the cinema increases the price of a ticket from $20,…

A: Consumer surplus is the difference between the highest price a consumer is willing to pay and the…

Q: this firm can sell its output for $16 per unit, what does its maximized producer rplus equal? 160.…

A: The difference between the amounts a producer is willing to supply items for and the actual amount…

Q: Consider the market for avocados, which is very competitive. Suppose a new use for avocados is…

A: We must know that the total surplus is the sum of consumer surplus and producer surplus.

Q: Assume that a firm is willing to sell its product for at least 100 TL and the going price for that…

A: Given  Firm's willingness to sell =100 TL The price of product is 150 TL

Q: 11.2 Universal Widget produces high-quality widgets at its plant in Gulch, Nevada, for sale…

A: 11.2 The inverse demand functions of locations A and L are;…

Q: Consider a market with free entry and exit where all firms are identical and have the following TVC…

A: A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and…

Q: A fast-food outlet finds that the demand equation for its new side dish, "Sweetdough Tidbit," is…

A: Demand equation, p=16(q+1)2p= 16q2+1+2qpq2+p+2qp = 16pq2+2qp= 16-pp(q2+2q)= 16-pq2+2q=16-pp Add and…

Q: 2. Suppose John has the following demand for coffee per day: Cups of Marginal Coffee Value 1 $8 2 $6…

A: Answer; The maximum amount of membership should be 7 dollars

Q: Two different boutique wineries supply two towns: town A and town B. Winery 1 supplies town A and…

A: Given  The marginal cost of each winery MC=20 Initially, winery 1 supplies town A having demand…

Q: nd is able to charge each consumer that amount. n the following graph, use the black point (plus…

A: (1) A non-discriminating single price monopolist will charge a uniform price from all consumers, and…

Q: The Johnson Robot Company’s marketing managers estimate that the demand curve for the company’s…

A: For the aforementioned question, the correct alternative is c, i.e., $1,500.

Q: With an inverse demand equation P = 10 – 0.05Q and the inverse supply equation P = 1 + 0.10Q:…

A: The inverse demand function shows the inverse relationship between the price and quantity demanded.…

Q: Derive the market supply curve and the equilibrium price and quantity b) Suppose a practically…

A: Answer a)

Q: able: Demand Schedule of Gadgets Price of Gadget Quantity of Gadgets Demanded $10 0 $9 100 $8 200…

A: The profit maximizing firm produces output at the point where the marginal revenue is equal to or…

Q: Question 1 According to the theory covered in class, an optimal two-part tariff pricing scheme…

A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: Suppose that the demand for Prada scarves is given by Q = 53 - P and the supply of these scarves is…

A: Consumer surplus is the extra benefit enjoyed by the consumer in the market who pay less to the…

Q: List price of a portrait: $ 34 Number of portraits to be sold at the list price: 5 portraits…

A: Customer Reservation price Total Revenue Marginal Revenue 1 $50 $50   2 $46 $96 $42 3 $42…

Q: Lukanga Water has been providing water services in the Central Province for more than 20 years.…

A: Profit maximising level of output for a firm is at the point where marginal revenue (MR) equals…

Q: The supply curve S(x) and the demand curve D(x) for chocolates are given by: S(x) = 4r + 16 D(x) =…

A: Answer: Given, Supply curve, Sx=4x+164             for 0≤x≤8where, x is the quantity in units and S…

Q: Q1) for a-firm how does the concept of producer surplus differ from that of profit.?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In a given market three firms compete by choosing quantity simultaneously. The demand schedule is…

A: Demand function is P(Q)=300-2QCost function is C(q)=140q-100 Find: (i) The equilibrium price,…

Q: Describe each of the following terms. Q.3.1 Consumer surplus  Q.3.2 Disutility  Q.3.3 Explicit cost

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Kia Motors manufactures cars that are sold through dealers. The (daily) demand for Kia cars in a…

A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…

Q: Suppose the demand for Apples is given by QA = 240 - 8 PA and the current market price is 25.…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: please TYPE and EXPLAIN your work. Disney World’s demand curve for rides is P=24-2.4Q, MR=24-4.8Q,…

A: The demand curve shows the relationship between the quantity demanded and the price of a good. The…

Q: Superior Cable TV buys the right to provide an exclusive movie network (HBOW) in its province.…

A: Price discrimination refers to the charging of different prices for different quantities of a…

Q: When the market price is equal to the minimum value of the average variable cost curve marginal…

A: When the market price is equal to minimum value of the AVC, then at that point MC cuts AVC from…

Q: 5. There are n firms in a competitive industry. The market demand function is given by p = 10 – Q. A…

A: Market Demand function : p = 10 - Q  Where , Q = Market quantity with n firms  So , Q = nq     Cost…

Q: 21. The above figure shows the market for a particular good. If the market is controlled by a…

A: First-degree price discrimination, or perfect discrimination, is the highest level of price…

Q: In order to price discriminate, a firm must I. Have market power. II. Sell a good that cannot be…

A: The monopoly would result in the market in which it has a single seller and many buyers in the…

Q: (2) (Assume that s = 0 (there is no subsidy.) (a) Write down firm A’s profit function. (No work…

A: Introduction Here are two firms in Karhide. Firm A is foreign firm and firm B is domestic firm. For…

Q: The market for paperback detective novels is perfectly competitive. Suppose we have identical book…

A: Given: P=81-2Q Number of book readers=9 To find: Minimum Marginal Willingness to Pay when 52 books…

Q: Use the following information to answer questions 15 - 17. Assume there are two persons who choose…

A: A consumer will buy a product only if the price of the product is less than or equal to the maximum…

Q: Suppose that in a perfectly competitive market, the demand for Frisbees is given by Q-200-2P and the…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: Indicate whích of the labeled areas represent consumer surplus derived from the purchase of Sparkle…

A: the monopoly is the sole producer of a good thus having maximum market power hence will act as a…

Q: The demand function for a certain model of Blu-ray player is given by p =  600 0.5x + 2 where p is…

A: consumer-surplus(CS), according to its definition, is the difference between the consumer’s…

Q: 1.Suppose that elk hunting permits are sold in a competitive market by landowners who own property…

A: Given: P = 180 -0.5q C(q) = 0.125q2   Required: Graphs for the scenario.

Q: The market for paperback detective novels is perfectly competitive. Suppose we have identical book…

A: Given: P=123-5Q Readers in market=337 Price of a paperback novel=$23

Q: A sand and gravel company sells pea gravel. It faces two types of customers with the following…

A: Given: Type A: P=3.5-0.002Q Type B: P=3-0.001Q Marginal Cost=$0.50 per bag

Q: Please provide clear explanation of every step in solution, outline formulas used in the exercise,…

A: Profit maximizing quantity is such where marginal revenue is equal to marginal cost. So, we need to…

Q: There are two types of consumers in Melbourne: students and non-students. The student population is…

A: Given; Student population= 10 Demand of each student for printing paper; Q=1-P Aggregate demand of…

Q: Under what assumption is the equilibrium in a differentiated goods market Pareto inefficien

A: Pareto efficiency refers to the situation where if there is any change occurs, it is not possible to…

Q: The market for paperback detective novels is perfectly competitive. Suppose we have identical book…

A: The perfectly competitive market is the market where the firms sold homogenous goods to a large…

Q: 1. A firm has the possibility of charging different prices in its domestic and foreign markets. The…

A:

Q: A firm produces two goods in quantities X and.Y Its cost function is C(X,Y) = 10X + XY + 10Y and the…

A:

Q: If Facebook perfectly price discriminates, what will the consumer surplus be? QUESTION 16 If…

A: Perfect Price discrimination, is the highest level of price discrimination in which each unit of…

Q: American Girl doll has an inverse demand curve of P- 150 0.25Q, where Q measures the quantity of…

A: The firm will maximise profit at a point where marginal revenue is equal to marginal cost. Toh…