d) What is the consumer and producer surplus in part (c). Give me the letters of the shape of the surpluses. e) What is the profit maximizing quantity if SoftMicro can perfectly price discriminate? f) What is thee consumer and producer surplus in part (e). Give me the letters of the shape of the surpluses.

d) What is the consumer and producer surplus in part (c). Give me the letters of the shape of the surpluses. e) What is the profit maximizing quantity if SoftMicro can perfectly price discriminate? f) What is thee consumer and producer surplus in part (e). Give me the letters of the shape of the surpluses.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 12.6IP

See similar textbooks

Similar questions

I stumble on questions like this... Suppose a firm is charging $8 for the first six-pack of cola and $4 for the second six-pack of cola. This firm is using Multiple Choice third-degree price discrimination. first-degree price discrimination. second-degree price discrimination. first-, second- and third-degree price discrimination.
please TYPE and EXPLAIN your work. Disney World’s demand curve for rides is P=24-2.4Q, MR=24-4.8Q, and MC=0 where P is the price of a ride and Q is the number of rides. a. Find Disney’s profit maximizing P and Q. b. Disney charges an entry fee $120 but prices each ride at $0. Carefully explain in quantitative terms why this is a superior approach (Hint: Find consumer surplus in part a and part b).
Shell has over 13,000 gas stations in the United States. In addition to gasoline, the gas stations also sell convenience items, such as snacks, non-alcoholic beverages, wine, beer, and hot food. Suppose you work for a gas station and your boss asks you to develop a pricing strategy for bottled local wine. The demand function is ? = 100 – 4?, where ? is the monthly quantity demanded of the bottled wine and ? is the price of the bottled wine. The marginal cost per bottle of wine is $5. Complete the following tasks: 1) (Calculating) In the worksheet “Q2 Calculations” of the provided Excel file, enter formulas in columns B-D to calculate Q (quantity demanded), MC (marginal cost), and MR (marginal revenue). Please round your results to one decimal place. Note that the inverse demand function is ? = 25 − 0.25? and that the MR function can be derived from the inverse demand function using the formula introduced in Module 5. You may find it helpful to review the Excel file for Chapter 11.
Draw pictures to describe how consumer surplus is changed by sucessful third-degree price discrimination. Please provide with explanation
The practice of posting a discrete schedule of declining prices for different ranges of quantities. Select one: a. First-degree price discrimination b. Fourth degree price discrimination c. Third-degree price discrimination d. Fifth degree price discrimination e. Second-degree price discrimination.
Q) Perfect price discrimination transfers the gains from trade from ________ to ________. Option. a. producers; consumers b. society; consumers c. society; producers d. producers; society e. consumers; producers Correctly explain with detail analysis
Q32 Let's assume we are referring to the Canadian market for Random Access Memory (RAM) storage. If the price of RAM increases: Multiple Choice total revenue for RAM producers will decrease if demand for RAM is price inelastic. the consumer surplus for Canadian consumer will decrease. consumers will buy more because RAM is an inferior good. the consumer surplus of Canadian will increase. total revenue for RAM producers will increase if demand for RAM is price elastic.
So, why do firms practice third-degree price discrimination? a) firms get pressure to offer lower prices to some consumer types- like children or senior citizens. b) Firms can earn greater profits practicing third-degree price discrimination compared to charging a single price per ticket. I need help figuring out if the answer is a or b.
Airlines charge a lower price to people who buy their tickets two weeks in advance than they do to people who buy their tickets two days in advance. Explain why. On the other hand, Broadway theaters charge a lower price to people who buy a ticket just before the show begins that to people who buy their tickets weeks in advance. Explain the difference.
Define price discrimination. Give two examples of price discrimination. How does perfect price discrimination affect consumer surplus, producer surplus and total surplus?
Please in a simple explanation, describe and or explain elasticity, consumer surplus and producer surplus.
With its new global mobile phone service, Ultra Mobile offers the following price schedule: Your first 10 minutes each day cost 25 cents per minute. All minutes after that are just 10 cents per minute. There are no additional charges, and no contract to sign or fixed monthly fees.If Peter's demand for global phone minutes is P = 20 − 4Q, where P is in cents per minute and Q is in minutes per day, what is Peter’s daily consumer surplus? 0 2.5 12.5 25 50