Assume the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their gambling monopoly. Economists refer to these expenditures as: Multiple Choice diseconomies of scale in production. perfect price discrimination. rent-seeking. socially optimal pricing.
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- What of the following statements is not true about group price discrimination? Group of answer choices it is less difficult to charge different prices to different consumers if a good is an individually provided service, such as haircuts the group of consumers with more elastic demand (as a given price) will be charged a higher price in theory the good considered must be the same, but in the real world a price discriminating monopolist may need to change the good in order to charge different prices (e.g., put it into a different container or box). Which is the best example of price discrimination? Group of answer choices Higher price for a Ford truck than for a Ford car. Different price for a car wash on Tuesday versus Wednesday Average price of a 2000 square foot home in California being higher than in South Dakota.Is it price discrimination when a professional football team charges, say, $150 per ticket for 50-yard-line tickets in the lower deck and $50 per ticket for upper-deck tickets overlooking the end zone? Why or why not?Yongling is a monopoly seller of a good in a town. She has a fixed supply of 8 units and no other costs. The market demand curve for the product is P = 20–q. What is her profit if she sells to all her clients at the same price? Group of answer choices $24 $36 $72 $48 $96
- Which of the following is an example for group price discrimination? the fact that a razor is cheap and blades are expensive local residents receiving a discount at the local golf course a BMW selling for more than a VW a hotel charging more for a room if the customers bring petsChanges in net revenue from price discrimination Consider the market for airline tickets on Flying High Airlines from Los Angeles to Chicago. The following graph shows the demand curve, marginal revenue (MR) curve, and marginal cost (MC) curve for this particular flight. In particular, the cost of adding another passenger to an otherwise empty seat is constant at $150. For simplicity, assume throughout this question that there are no supply constraints caused by seating capacity limitations. Suppose Flying High Airlines sells each seat on the plane for the same price. Place the purple point (diamond symbol) on the graph at the profit-maximizing price and quantity. Dashed drop lines will automatically extend to both axes. Then, place the grey rectangle (star symbols) to shade the area representing net operating revenue at the profit-maximizing price and quantity. Suppose now that Flying High Airlines discovers that business travelers’ demand for airline tickets is more inelastic…Sport facilities sell tickets according to a seating map. At the Roger Centre, Blue Jays fans can see their Blue Jays for as high as $126 in the VIP area and as low as $17.50 in the 500 level. Provide the economic rationale and conditions for the price strategy at these sport facilities. Evaluate critically the following statement: “Price discrimination by a monopolist can increase welfare.” Use any of the market structure models to describe the COVID-19 vaccine manufacturing industry. Make sure you justify your answers.
- Topic: Pricing with Market Power Instructions: Show complete computations and label all graphs properly/accurately. (2) Suppose Globe practices first-degree price discrimination and is faced with the following demand and marginal cost functions: Q = 6000-100P P = 65 – 0.01Q MC = 6.68 + 0.0068Q (a) Compute for Globe’s consumer surplus and producer surplus. (b) Does the social welfare improve because of Globe’s strategy of first-degree price discriminating? Explain intuitively and show graphically.Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure The burrito truck industry in the city is perfectly competitive. On any given evening, the market demand for burritos is given by Qp = 88 - P: where QD is the quantity of burritos demanded per evening, and p is the price of a burrito. Each burrito seller must pay $50 per day to rent a burrito truck. In addition, the cost of ingredients for each burrito is $3, regardless of how many burritos are sold. Given space constraints, each burrito truck is able to serve a maximum of 10 customers per evening. In a long-run equilibrium in the burrito industry, the number of sellers (burrito trucks) in the market every evening will be _____Consider a market with a monopoly firm. Sales revenue of this firm is $15,960,000 total cost is $8,680,000 and average cost is $3.10 Another firm wants to enter the market and provide the same product at a lower price. To intimidate the potential competitor, the monopoly firm intends to use predatory pricing.By how much can this firm reduce the price of its product without losses? Enter your answer in the box below and round to two decimal places if necessary.