If a demand curve goes through the point P = $6 and Qd = 400, then $6 is the highest price consumers will pay for 400 units. consumers will buy more than 400 if price is $6. 400 units are the most consumers will buy if price is $6. $6 is the lowest price consumers can be charged to induce them to buy 400 units. both a and c

If a demand curve goes through the point P = $6 and Qd = 400, then $6 is the highest price consumers will pay for 400 units. consumers will buy more than 400 if price is $6. 400 units are the most consumers will buy if price is $6. $6 is the lowest price consumers can be charged to induce them to buy 400 units. both a and c

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

Chapter18: Auctions

Section: Chapter Questions

Problem 18.2IP

See similar textbooks

Similar questions

Refer to Exhibit 4-3. If P1 is a price ceiling, the maximum (per-unit) amount buyers are willing to pay to purchase Q1 units is Group of answer choices P1. P2. P3. P1 + P2. P3 - P1.
What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? Group of answer choices It may sell the remaining cars at huge discounts to hit the quota. It creates an incentive to sell cars from different manufacturers. It would ruin the relationship between dealer and manufacturer. It will be tougher to bargain for potential buyers. buying power at the dealer. None of the above will occur.
Any consumer trying to decide whether to buy a given good or service will base the decision on his or her reservation price and the existing market price.When making this decision, the buyer's reservation price measures the marginal cost: the cost of production. marginal benefit: the value of the resources used in production. marginal benefit: the highest price that a buyer is willing to pay for a product. marginal cost: the lowest amount the buyer is willing to pay for a product. The market price measures the marginal cost: the amount that buyer will actually have to pay. marginal benefit: the value of the resources used in production. marginal cost: the cost of production. marginal cost: what the buyer is willing to pay. The consumer will purchase the good or service only if the buyer's reservation price is equal to or higher than the market price. lower than the market price. higher than the market price. equal to the market…
Estimate the equlibrium price and quantity of the market whose demand and supply functions are pd =−(q + 4)2 + 100 and ps = (q + 2)2 respectively.
An increase in price, all else held constant, would cause a change from Multiple Choice point 3 to point 4. point 4 to point 5. point 5 to point 1. point 1 to point 3.
Price matching is a strategic move that A- seeks to make cheating unprofitable. B- must generally be announced publicly in order to have the desired effect. C- has no usefulness to managers if a simultaneous pricing decision is going to be made only one time. D- both a and b E- all of the above
The term "BOGO" ("Buy One Get One", also referred to as "Buy One Get One Free") has entered the urban dictionary, and is a sales tactic whereby sellers offer buyers a second unit of the item free if they pay full price for the first unit. A variation of BOGO occurs when stores offer a "Buy One Get One Half Off" sales promotion. Why do you think consumers respond to the "Buy One Get One Half Off" sales promotion and what principle of economics does this behavior reflect?
A group of retailers will buy 88 televisions from a wholesaler if the price is $300 and 128 if the price is $250. The wholesaler is willing to supply 72 if the price is $225 and 152 if the price is $315. Assuming the resulting supply and demand functions are linear, find the supply equation, the demand equation, and the equilibrium point for the market.
A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an autodefrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with autodefrost at $150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women comprise the bulk of microwave shoppers?
A toy company is trying to determine the optimal price for their weekly supply to meet the demand for a toy they are about to release. They estimate that the supply function follows p= 0.006q^2 + 0.14q+ 8.62 and the demand function follows p= -1.25q+ 65 , where p is the price of the toy (in dollars) and q is the weekly quantity of the toy (in hundreds). If the company tries to sell the toy for $24, will there be a shortage or surplus of toys each week?
Network externalities are present when the usefulness of a product A. increases with the number of consumers who use it. B. increases because there is no market failure. C. decreases because it is consumed publicly. D. increases with the endowment effect. E. increases because there are no switching costs. Click to select your answer and then click Check Answer.
A seller sells a good of quality q at a price t. The cost of producing at quality level q is given by q2/2. There is a buyer who receives a utility of Xq − t by consuming the unit of quality q at price t. If he decides not to buy, he gets a utility of zero. X can take two values X1 = 1 and X2 = 4. (a) Suppose the seller can observe X. Derive the profit maximizing price-quality pairs offered when the type is X1 = 1 and when the type is X2 = 4. (b) Show that the full information price-quality pairs are not incentive compatible if the seller cannot observe X.