There are only two customers (X and Y), who demonstrate different reservation prices for three different products (A, B and C). MC for all products = 0.What is difference between profit under individual pricing and profit under pure bundling strategy? Customer X Customer Y Product A 5 7 Product B 9 5 Product C 2 8
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- Suppose Bang Bang is the only local swimming pool. She believes that there are 10 potential customers. Each of them has an identical demand function of QI = 250 – 0.02P, with QI as the unit of services of each customer. She operates with a constant variable cost of $500 per unit of service. In reality, demand from different customers may not be identical. Discuss how this might create problems to Bang Bang in conducting a two-part tariff.Suppose Bang Bang is the only local swimming pool. She believes that there are 10 potential customers. Each of them has an identical demand function of QI = 250 – 0.02P, with QI as the unit of services of each customer. She operates with a constant variable cost of $500 per unit of service. If Bang Bang can practice a two-part tariff with a membership arrangement, suggest the optimal pricing strategy. Show your calculationsA university’s students have demand for credit hours given by q = 30 – 0.04p, where p is the price per credit hour. a) If the university charges only one price for credit hours irrespective of the number of credit hours a student enrolls for, identify the price per credit hour that would maximize revenue for the university. b) If the university adopts a two-tier pricing structure, identify the structure that would maximize revenue for the university. 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.
- Q52 Plaex Building Systems Inc., a startup firm based in Hampstead, New Brunswick, is a monopolist selling nine units of its output at a price of $50. If the marginal revenue of the tenth unit is $30, then the Multiple Choice price of the tenth unit is greater than $50. price of the tenth unit is $48. price of the tenth unit is $49. firm's demand curve cannot be specified. firm's demand curve is perfectly elastic.A nightclub manager realizes that demand for drinks is more elastic among students, and is trying to determine the optimal pricing schedule. Specififically, he estimates the following average demands: • Under 25: qr= 18 − 5p • Over 25: q = 10 − 2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the nightclub $2 each. (a) If the market cannot be segmented, what is the uniform monopoly price? (b) If the nightclub can charge according to whether or not the customer is a student but is limited to linear pricing, what price (per drink) should be set for each group? (c) If the nightclub can set a separate cover charge and price per drink for each group, what two-part pricing schemes should it choose? (d) Now suppose that it is impossible to distinguish between types. If the nightclub lowered drink prices to $2 and still wanted to attract both types of consumers, what cover charge would it set? (e) Suppose that the nightclub again restricts itself…Multichoice company broadcasts to subscribers in Lusaka and Solwezi. The demand for each ofthese two groups are Qsz= 50 - (1/3) Ps and QUSK= 80 - (2/3) Pusk, where Q is in thousands ofsubscriptions per year and P is the subscription price per year. The cost of providing Q units.ofservice is given by C (Q) = 1000 + 30Q, where Q = Qsz + QusK. Assuming Multichoice is aMonopoly and can engage in third-price discrimination, then1. What is the profit-maximizing price and quantity in Solwezi Market?2. What is the profit-maximizing price and quantity in Lusaka Market?3. Suppose the Monopoly can only charge a single. What price should it charge and what isthe total quantity sold?
- Please answer fast A profit-maximizing shop in a town has a constant marginal cost of $10 and can sell to two types of customers: students and non-students. The shop faces a demand by students given by QS = 50‒P and a demand by non-students given by QN = 190‒3P. Which price would students pay under uniform pricing? Which price would students pay if the seller could successfully engage in price discrimination?Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original specifications. If Sean charges $40, he would have 10 customers, but if he lowers the price to $37, he would have 11 customers. What is the marginal revenue of the 11th customer?14-2. German brothels recently began offering a monthly subscription service for multiple purchasers. If you wished to reduce the incidence of prostitution, would you consider this pricing plan to be a desirable change?
- . Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success. b. A Monopolist producing and supplying cooking gas to Mombasa city faces the demand function. Q = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Q2. i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit. ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm. iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations.A manager of a nightclub realizes that demand for drinks is more elastic among students and is trying to determine the optimal pricing schedule. Specifically, he estimates the following average demand for his customer types: Under 25: qr=18-5p Over 25: q=10-2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the club $2 to make. If the manager cannot identify to which group his customers belong, what is the uniform monopoly price? If the manager can identify to which group his customers belong, what price will he charge each group. Assume the manager can only charge a single price to each group. If the manager can charge a separate entry fee and a price per drink for each group, what two-part price will the manager set for reach group. Now suppose that once again it is impossible to identify which group the customers belong. Suppose the manager lowers the price of drinks to equal to marginal cost and still wanted to attract both…True/False Monopoly produces a product that is unique and have no close substitute.