Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is p= 120 - 2q, where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $20, which is the marginal cost his round imposes on the club. What membership fee would maximize profit for the club? The manager could have charged Joe a single price per round. How much extra profit does the club earn by using two-part pricing?
Q: In order to make a survey of the buying habits, two markets A and B are chosen at two different part...
A:
Q: Pca)=90-Q, mC = 30 Q: ca) Find the opmmal TWo-block pricing quantities and prices (6 Smyle manoply p...
A: A single-price monopoly is a firm that must sell each unit of its output for the same price to all i...
Q: in five years, there were 30 employees, 18 being union members, all still making $20,000 per annum, ...
A:
Q: Britney is a baseball fan and attends several games per season. Her expenses per season are listed i...
A: Given: Baseball tickets: year 1=$500 year 2=$560
Q: 3. Consider an economy that only produces mittens. In Year 1, 400 and the price is $5 per pair. In t...
A: Hi! Thank you for the question, as per the honour code, we are allowed to answer three sub-parts at ...
Q: f q = 4 lnL and the good is sold for $10 then if the wage rate is $5 the number of units of labor us...
A:
Q: Output (units) (units) (units) (units) |(dollars) (dollars) (dollars) 1 $500 $0 1 1 10 (A). $500 $20...
A: We know , TC = TFC + TVC TC = 500+ 600 TC = $1100
Q: Suppose the isoquant represents the production of 120 pencils. What will happen to the isocost and i...
A: A. If labour become more costly than the isocost line will pivot towards left from horizontal axis a...
Q: Required Information A government-funded wind-based electric power generation company in the souther...
A: Given: Interest rate=10% Life=25 years
Q: I deposit £250 in a high-earbing account paying 9% compound interest and leave it for three years. W...
A:
Q: Han Qing-Jao is exporting from Taiwan to the United States for the first time and she is concerned a...
A: In international trade, there exists the currency risk. It refers to the change in the exchange rate...
Q: TFC TVC 25 25 25 12 2.
A: The Profit maximizing level of output for the firm is at point where MR>=MC.
Q: In a certain factory there are two independent processes manufacturing the same item. The average we...
A:
Q: Suppose you invested $1000 annualy over a 15 year period. If money earns an annual rate of 1% compo...
A: Invested amount per year = $1000 Time period for investment = 15 Interest rate = 1%
Q: 1 Planner’s Discounting Suppose that the planner discounts the utility of future generations at the ...
A: Rate of discounting utility = σ So the total utility level given infinite time horizon = U + Uσ + Uσ...
Q: Suppose in a perfectly competitive market with demand and supply as follows: 100 D(q) = %3D S(q) = J...
A:
Q: 4. Computing and interpreting average tax rates In a hypothetical economy, Clancy earns $11,000, Eil...
A: When all taxable sources of income are combined together and divided by the amount of taxes payable,...
Q: Globalization and The Asia Pacific and South Asia Question: What caused the Asian financial crisis...
A: The Asian Financial Crisis in the mid-1980s and mid-1990s, as well as the collapse in land and energ...
Q: construct two graphs lined up one on top of the other. The upper graph should reflect a total cost c...
A: Total cost is the sum of fixed cost and variable cost.
Q: There is a rise of global value chains in agriculture; This would lead to increases in income for th...
A: Producers and consumers all around the world are linked through global value chains. Agriculture and...
Q: Exhibit 21-3 Marginal Physical Product of Total Total Variable Fixed Variable Input Fixed Variable M...
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses ...
Q: of workers to two decimal places e.g. 1.00 million and percentages to one decimal place e.g. 1.0%. 2...
A: All A,B & C answers given below,
Q: The costs of tickets and transportation to and from the game, as well as the amount of time the fan ...
A: Here, some information about the game and its related events are given, such as ticket costs, transp...
Q: How does protectionism affect world trade?
A: Protectionism:- The term protectionism can be used to explained governmental measures to limit forei...
Q: Situation 21-1 Diane's Donuts will begin selling donuts next week. Diane figures that the average va...
A: Given: Average variable cost=$0.30 Amount paid for machinery=$20000
Q: In sample 400 parts manufactured by a factory, the number of defective parts was found to be 30. The...
A: Introduction Total manufactured part = 400 Total defective part = 30 Now company claim that there a...
Q: Exhibit 21-3 Marginal Physical Total Total Product of Variable Marginal Variable Fixed Input Input V...
A: The markets are the place where the buyers, and the sellers of the goods, and services tend to inter...
Q: Does the shape of production possibilities curve matter and why societies cannot make a choice above...
A: All economies of the world are endowed with limited amount of natural resources but the wants of con...
Q: A company produces a certain commodity. The labor and material cost for each item produced is P65. O...
A: Let the number of units be x Therefore, Total labor and material cost = P65 * n Other variable cost...
Q: 2. Consider the following information of a hypothetical firm: Q = 100K0.6 L0.8; w = 1; r = 3 A. Solv...
A:
Q: Use the cost table below to find the following marginal costs. Output quantity Total variable cost...
A: Marginal cost is the additional cost incurred from producing an additional unit of output.
Q: 1. The following table shows three age-groups of boys and girls, (a) the number of children affected...
A:
Q: Should regulators give independent directors in family firms more power?
A: Regulators should give independent directors in family firms a relevant powers and make the person i...
Q: The long-run is a period of time long enough so that all inputs, including facility and equipment, a...
A: PLEASE FIND THE ANSWER BELOW.
Q: What is the role of strategic management changing in the context of current economic processes and t...
A: There is a significant role of strategic management in an economy. Several local governments and com...
Q: In a life-cycle model, a worker with constant household productivity will react to an expec wages by...
A: Labour supply curve shows a positive relationship between wage rate and number of hours labors are w...
Q: A new boiler was installed by a textile plant at a cost of P 3M and projected to havea useful life o...
A: Given: Cost=3M Useful Life=15 years Salvage Value=P 100,000 Interest rate=12%
Q: overnments attempt to stimulate economies by offering firms temporary investment tax credits. Explai...
A: Tax credits are the subsidy in taxes provided by the government.
Q: Recognize the objectives a firm has in setting prices and the constraints that restrict the range of...
A: The goals that assist your organisation in determining the cost of a product or service to existing ...
Q: accounts. How much will Mr. Jones have in his savings account in thirteen years if $50,000 is put in...
A:
Q: Why do you think calls for protectionism are greater during sharp economic contractions than during ...
A: Concepts:Protectionism Protectionism refers to the trade protection in which a nation reduces its im...
Q: Explain government crowding out and how it occurs. How do government surpluses affect real interest ...
A: The answer and explanation for both these questions is as follows:-
Q: phone-making company operates a plant in City A where labor is more expensive as compared to capital...
A: A. Isocost line represent the input required to produce same level of output. Here the isocost line ...
Q: 2. Consider an economy that is characterised by the following set of equations: C = co+c¡Yp Yp = Y -...
A: PLEASE FIND THE ANSWER BELOW.
Q: Consider the scenario in the table below for two economies, Economy D and Economy E. Note that the t...
A: Solow growth model depicts that the country converges to equilibrium after a certain point in time. ...
Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table b...
A: Both questions are different and according to bartleby guidelines we are required to answer only the...
Q: 6. Countries have different regulations on what may or may not be imported and which tariff applies ...
A: 6. Countries have different regulations on what may or may not be imported and which tariff applies ...
Q: A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book...
A: Book value refers to the asset value as per the balance sheet account balance. It is the actual valu...
Q: Eva and Ethan love attending sports events, especially when they go together. However, Eva prefers w...
A: Payoff matrix: The term Payoff matrix refers to the visual representation of the possible outcomes o...
Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be fix...
A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales...
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- A golf cub’s owner has commissioned a market study that estimates the average customer’s monthly demand curve for playing 18-hole golf game to be Q=50 – 0.5P, where Q stands for the number of 18-hole golf game, and P is the green fee. The marginal cost is given by MC=20. (1) Under two-part pricing strategy, what is the optimal amount of green fee to charge for one round of 18-hole golf game? (2) Under two-part pricing strategy, what is the optimal amount of membership due? (3) Under two-part pricing strategy, what is the size of the profit obtained from the average customer?b) The manager could have charged Joe a single price per round. How much extra profit does theclub earn by using two-part pricing?c) Joe marries Susan, who is also an enthusiastic golfer. Susan wants to join the Northlands Club.The manager believes that Susan’s inverse demand function is ? = 100 − 2?. The manager has apolicy of offering each member of a married couple the same two-part prices, so he offers themboth a new deal. What two-part pricing deal maximizes the club’s profit?d) Will this new pricing have a higher or lower access fee and per-unit fee than in Joe’s originaldeal? How much more would the club make if it charged Susan and Joe separate prices?Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million A. Using the midpoint method, calculate the price elasticities of demand for group A and group B. B. Explain how the discount will affect total revenue from each group.C. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?
- Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million A. Using the midpoint method, calculate the price elasticities of demand for group A and group B. B. Explain how the discount will affect total revenue from each group. C. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?Explain the type of pricing strategy that you as the manager of a company would implementfor Good X and Good Y with the following price elasticity of demand co efficients. Usediagrams to motivate your answer.a). Good X: 2.3 b). Good Y: 0.6GameZone, a video games store, is considering the best way to price two new games – a first-person shooter (FPS) and a racing game. There are four types of consumers that might buy the games with roughly equal numbers of each type, and their willingness to pay (WTP) for each game is detailed in the table below (assume that the willingness-to-pay for a second game of the same type is zero). How should Gamezone price the two games separately to maximise revenue? How should Gamezone price a bundle of both games to maximise revenue? Is there an alternative (involving bundling) that generates more revenue than either single prices or a bundle alone? Under what condition/s is bundling likely to increase profits for a firm? Consumer Type WTP for FPS game WTP for racing game A $120 $70 B $70 $120 C $160 $10 D $10 $160
- Suppose a perfectly competitive market for hotdog stands in New York City becomes monopolistically competitive when gourmet, discount, andethnic hot-dog retailers show up, making eachcart slightly different. If hot dogs from differentstands are now imperfect substitutes and there arenumerous carts in the city, compare the producerand consumer surplus and total social welfarebefore and after the changeThere are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student’s demand of printing paper is Q=1−?, for ?<1.The non-student population is 40, and each non-student’sdemand of printing paper is Q=3−?, for ?<3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full price, p. What are the profit maximizing price and discount d?1 Assume there are two firms in a Hoteling Linear city. One firm is located at zero and the other at one. Assume the following utility equations: U0=v−p−tx+μ, U1=v−pn−t(1−x). Where U0 is utility from buying the good from the firm located at zero, p is the price for the firm at point zero, t is the travel cost and μ is bonus utility because the firm at point zero makes people a little bit happier. U1 is utility from buying the good from the firm at point one and pn is the price. Part a) Find the indifferent consumer
- Suppose that each person's demand for a project can be expressed as P = 100 - 20Q. Suppose that the firm wants to use two-part pricing. If the firm charges a price of $40 per unit, what is the maximum that the firm can charge in the fixed fee F?Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B (sales per week) (sales per week) Volume of sales before the 10% discount 1.55 million 1.50 million Volume of sales after the 10% discount 1.65 million 1.70 million Using the midpoint method, calculate the price elasticities of demand for group A and group B. Explain how the discount will affect total revenue from each group. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to…Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B (sales per week) (sales per week) Volume of sales before the 10% discount 1.55 million 1.50 million Volume of sales after the 10% discount 1.65 million 1.70 million Using the midpoint method, calculate the price elasticities of demand for group A and group B. Explain how the discount will affect total revenue from each group.