Referring to the data below,choose all the statements that are correct. Profit Compared With Price Pre-tax Profit Indirect Price Discrimination Monthly 2$ Weekday Weekend Dollar Percent 54 49 3,815,269 54 54 2$ 3,717,738 2$ (97,531) -2.56% 2$ 2$ (76,985) 3,738,284 $ 53 53 -2.02% 52 52 3,736,196 2$ (79,073) -2.07% 51 51 $ 3,711,474 $ (103,795) -2.72% 50 50 3,664,119 2$ (151,150) -3.96% 49 49 24 3,575,671 $ (239,598) -6.28% If it cannot use indirect price discrimination, the table shows that Universal's profits will be 6.28% lower. The data are not suitable to make statements about indirect price discrimination and profits The prices $54 (weekday) and $49 (weekend) represent indirect price discrimination. There is no indirect price discrimination in rows 2-7 of the table. Without data and analysis outside of the data in this table, one cannot prove that $54 and $49 are the optimal indirect price discrimination prices. According to the table, if it is not allowed to use indirect price discrimination, Universal's maximum profits are achieved when it charges a price of $53.

Referring to the data below,choose all the statements that are correct. Profit Compared With Price Pre-tax Profit Indirect Price Discrimination Monthly 2$ Weekday Weekend Dollar Percent 54 49 3,815,269 54 54 2$ 3,717,738 2$ (97,531) -2.56% 2$ 2$ (76,985) 3,738,284 $ 53 53 -2.02% 52 52 3,736,196 2$ (79,073) -2.07% 51 51 $ 3,711,474 $ (103,795) -2.72% 50 50 3,664,119 2$ (151,150) -3.96% 49 49 24 3,575,671 $ (239,598) -6.28% If it cannot use indirect price discrimination, the table shows that Universal's profits will be 6.28% lower. The data are not suitable to make statements about indirect price discrimination and profits The prices $54 (weekday) and $49 (weekend) represent indirect price discrimination. There is no indirect price discrimination in rows 2-7 of the table. Without data and analysis outside of the data in this table, one cannot prove that $54 and $49 are the optimal indirect price discrimination prices. According to the table, if it is not allowed to use indirect price discrimination, Universal's maximum profits are achieved when it charges a price of $53.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.10P

See similar textbooks

Similar questions

The following table shows the before-tax and after-tax Gini coefficients for Mexico and Canada. Mexico Canada Before tax 0.473 0.427 After tax 0.458 0.303 Discuss the figures in the table in terms of income distribution and compare the taxation policies in the two countries.
Given the following information, Qd=240-5p and Qs=P. a.What is sellers reservation price? b.Buyers reservation price? c.Consumer surplus before tax. Producer surplus before tax. Determine buyers price after tax of $12 per unit on sellers in the market. Determine seller's price after tax. Determine quantity after tax of $12. Consumer surplus after tax. Producer surplus after tax. Tax revenue Deadweight loss of the tax Total surplus after tax
When an excise tax is levied on sellers and they are responsible for paying the tax to the government, this will have no effect on buyers since they don’t have to directly pay the tax. Select one: True False
s manager in the company, Delia receives the following benefits: Company anniversary gift P10,000 Rice subsidy 35,000 Laundry allowance 6,000 Uniform allowance 8,000 Christmas gift 5,000 13th month pay 100,000 CBA incentive 10,000 Monetized unused vacation leave (5 days x P4,500) 22,500 How much should be subject to the fringe benefits tax?
Question. Theoretically and graphically explain the incidence of ad-valorem tax on the equilibrium price and quantity.
(13) A monopolist is a price- Select one: a. taker. b. maker. c. blocker. (14) A trademark is an example of a legal monopoly. It means ________. Select one: a. protection for the life of the author plus 70 years b. an identifying symbol or name c. an exclusive legal right to make, use, or sell the invention for a limited time
501(c)3 public charities benefit from the charitable deduction law, meaning they can accept donations and issue donors a tax receipt so that the donor can deduct the contribution on federal income tax returns. A. True B. False
Marginal tax rate in KS for single filter is T(I)= 3.1% $0 ≤ I ≤ 15,000 5.25% $15,000 ≤ I ≤ 30,000 5.7% I > 30,000 The standard deduction is $3,000 How much would someone who earns $13,000 a owe in state taxes?
d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being a realistic represenation of its market: d = 800 - 10p; where p must be between $20 and $70. How many units can the firm sell at the $20 per unit price? And $70 per unit price? By how many units does a $1 increase decrease the demand?
Estate duty is a direct tax True/False
Q-3: A monopolist sells in 2 markets and produces in 1 factory. Although the monopolist can charge difference prices in the two markets, it must sell all units within a market at the same price.a) Suppose this monopolist does not have a marginal cost (M C = 0). If demand in market 1 is X1(p1) = a1 −b1p1 and demand in market 2 is X2(p2) = a2 −b2p2, set up the monopolist’s profit maximization problems and solve for the market prices that result in each market.b) Under what conditions on a1, b1, a2, b2 from above will the monopolist not price discriminate?c) If demand in market i, where i = 1 , 2, is instead Xi(pi) = aipi−bi and the monopolist has some constant marginal cost of c, where c > 0, set up the monopolist’s profit maximization problem and solve for the market prices.d) Under what conditions on a1, b1, a2, b2 from above will the monopolist not price discriminate?
A more precise description of the demand conditions show that it also depends on a number of other factors, including the CO2 quota price, the interest rate and the price of electricity in the Nordic wholesale market, Nordpool. An overall demand function can thus be described as: Q = 33.33 - 0.000004167 * P + 0.04167 * PCO2 - 0.4167 * r - 0.00833 * Pel, where Q is the quantity sold, P is the price, PCO2 is the price of the EU's CO2 quotas, measured in euros per tonnes, cf. Chart 1, r is the banks' average lending rate measured in per cent. pa., and Pel is the Nordpool wholesale price of electricity excl. network and system tariffs as well as charges, measured as Danish kroner per MWh (mega-watt-time). P can here be set to DKK 4,000,000, PCO2 can be set to 62, r to 2.37 and Pel can be set to 250. Define the concept of price elasticity more generally and calculate the price elasticity as well as the cross-price elasticities with regard to the CO2 price, the interest rate…