What is a two-part tariff? Why do firms sometimes use them? What is an example of a firm that uses a two-part tariff as part of its pricing strategy?
Q: 3. Table: Hypothetical U.S. National Income and Product Accounts Data Category Consumption (personal…
A: The final worth of all the products and services generated in an economy during a specific time…
Q: DI=Y OUTPUT/INCOME CONSUMPTION(C) SAVINGS (S) MPC MPS APC…
A: We use the following formulas to solve the above questions: 1) Income = Consumption + Savings So,…
Q: Suppose that on the island, the currency is shell beads. The going price for coconuts is 1 bead and…
A: The set of goods or services that maximize utility is determined by comparing the marginal utility…
Q: What will happen to the equilibrium price and quantity of oranges? Both equilibrium price and…
A: Favorable news can influence demand of a product. If there is news that oranges are more beneficial…
Q: What is the concept of an ecological dish and give an example
A: Ecology is the study of the relationships between living organisms, including humans, and their…
Q: the nominal rate on a $1,000 investment is 12.75 percent. the expected rate of inflation is 2.25…
A: Nominal interest rate refers to the rate of interest which is not adjusted for inflation. Inflation…
Q: The budget set, or budget constraint, in the graph shows the possible combinations of brownies and…
A:
Q: Fill in the space (d) in the table below associated with the firm William Perry, Inc., that delivers…
A:
Q: Ginny currently earns a (a. nominal; b. real) wage of $12.00 per hour; in other words, the…
A: Wages are the rewards given to a person for successfully completing a task. Real wage and nominal…
Q: 1. Suppose Acme Clothing is operating with 20 units of capital and producing 9 units of output at an…
A:
Q: 5. Table: Hypothetical Canadian National Income and Product Accounts Data Category Consumption…
A: GNI is the sum of Consumption ,Investment , Government consumption , net export , Foreign income…
Q: A lent Php 5207 to B for 2 years and Php 5721 to C for 4 years on simple interest at the same rate…
A: Given A lent PHP 5207 to person B for 2 years and PHP 5721 to person C for 4 years. Total interest…
Q: исх, у з= мох = моде MRS (ay) – ди ду - - а иг laxt 1 axty a ax+y) до дже I axty ха Muse MUY a ax+y…
A: Marginal utility is the utility derived from consuming additional unit. Marginal rate of…
Q: Susan and Jane are believed to have the same money income, have the same tastes, and face the same…
A: Consumer surplus is the difference between the maximum willingness to pay and actual payment. Given…
Q: Find the amount at the end of two years and seven months if Php 1,000 is invested at 8% cq using…
A: Simple interest is a quick and simple way to calculate loan interest. The daily interest rate…
Q: 11. Assuming that all transactions are recorded, if the United States has an overall deficit (–) in…
A: The balance of payment is a record of transaction between the domestic country and the rest of the…
Q: 3. An income tax. Suppose the U.S. Congress decides to levy an income tax on both wage income and…
A: Comprehending the Solow Model depends on understanding the steady-state. Investment and depreciation…
Q: Explain how providing education to all children in grades K-12 provides external benefits to…
A: K-12, a term utilized in education and educational technology in the US, Canada, and potentially…
Q: Which of the following would cause the supply of bread to become more elastic? The ability to easily…
A: The elasticity of supply tells us the responsiveness of quantity supplied with respect to the price…
Q: The demand curve and supply curve for one‐year discount bonds with a face value of $1,050 are…
A: Demand for the bonds : P = −0.8 * Q + 1160 or Q = 1450 - 1.25P Supply for bonds : P = Q + 720 or Q =…
Q: 1.4. Suppose there are ʼn firms in the Cournot oligopoly model. Let q; denote the quantity produced…
A: Introduction Cournot has given a model of oligopoly. An oligopoly is a market where there are few…
Q: A good economic theory …
A: An economic theory is a collection of ideas and principles that explains how different economies…
Q: O Adverse selection
A: In the marketing signal the sellers and consumer convey the information about products. By providing…
Q: An Increase in market price will lead to Multiple Choice a decrease in demand. an increase in…
A: The term "demand curve" describes a curve that displays different quantities of an item being wanted…
Q: р P4 P3- P₂+ PI + - - MR QI [[[[२८]] Q3 The monopolistically competitive firm in the figure above MC…
A: When many companies offer competing products or services that are similar but not perfect…
Q: ason, a high-school student, mows lawns for families in his neighborhood. The going rate is $12 for…
A: A perfectly competitive market is one where there are many buyers and sellers and each of them has…
Q: You have a big exam tomorrow. You were planning to study tonight, but your friend has tickets to a…
A: Given that the person would be willing to accept a B on the exam in order to go to the concert.…
Q: 1) Complete the table. Price 18 17 16 15 14 13 12 Quantity Total Marginal Fixed Demanded Revenue…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Question 2 Your marginal benefit from eating candy bars is shown in the table below: Marginal…
A: The difference between the overall benefit obtained and the quantity used is used to determine the…
Q: 8. Suppose a firm has following total cost function: TC=900+4Q+Q². Find the fixed cost (FC), total…
A: The total cost involve in the process of production is the sum of the total fixed cost and total…
Q: Explain how competitive advantage play a role as one of the globalization driver ?
A: In recent decades, the primary idea of globalization has taken centre stage in economic life. Almost…
Q: In the market for widgets: there are 20 people willing to sell at £5 or more, 20 people willing to…
A: Introduction Quantity supplied is when the amount of a product is available to provide at different…
Q: nformation: a) Explain what the time series is likely to look like (i.e., cyclical, seasonal, with a…
A:
Q: (A) Suppose an individual who derives utility u(x, y) from consuming a units of the good X and y…
A:
Q: 7. The unemployment rate at the time was 10%, and a confederation of large businesses campaigned for…
A: Unemployment rate = 10% Minimum wage decreases from 50 francs to 30 francs
Q: Which of the following would properly be classified as an unfavorable supply shock? a)The interest…
A: A supply shock is an unexpected event that changes the supply of a product or commodity, resulting…
Q: The wildlife department has been feeding a special food to rainbow trout fingerlings in a pond.…
A: Sample size, n = 42Mean of population, μ = 402.7The standard deviation of the population, s = 12.8…
Q: What are the advantages and disadvantages of special interest groups within the democratic system of…
A: The various measures taken by the government to control and regulate the private sector in order to…
Q: A monopoly is considering selling several units of a homogeneous product as a single package. A…
A: In economics, the marginal cost is the change in total production cost that comes from making or…
Q: 1. You borrowed $10,000 from a bank at an interest rate of 9%, compounded monthly. This loan will be…
A: Given that, Amount = $10,000 Interest Rate = 9% = 0.09/12 = 0.0075 Compounded Monthly Will be repaid…
Q: A shift in the demand curve for bonds occurs when the quantity demanded changes at each given…
A: The term "demand curve" describes a curve that depicts the various quantities of an item that are…
Q: A O The total surplus (sum of producer and consumer surplus) would increase
A:
Q: - 1.6. Consider the Cournot duopoly model where inverse demand is P(Q) = a − Q but firms have…
A: An industrial structure where businesses compete on the volume of output they will generate, which…
Q: Bob is considering whether to purchase a warranty to provide insurance on his new computer. There is…
A: The expected utility tells us what will that person's average utility when he can lose and when he…
Q: 7. Assume a normally shaped demand curve. The government wishes to help people onto the housing…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: Which of the following explains why the supply curve is upward sloping? At a lower price, consumers…
A: A supply curve determines the relationship between the price of a good and its quantity supplied.…
Q: Livestock and poultry farming are some of the largest contributors of ammonia emissions. Ammonia has…
A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…
Q: A financial institution (loan shark ) is willing to lend you $400. You pay $450 after one week. a)…
A: The effective interest rate will be including the compounding period into consideration while…
Q: The equilibrium price is $ and the equilibrium quantity is The buyer's reservation price is $ and…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Suppose that at present total currency in the Philippine economy is presently PHP5.5 trillion, total…
A: Given The currency in circulation in the Philippine economy (C) is Php 5.5 trillion. The total…
What is a two-part tariff? Why do firms sometimes use them? What is an example of a firm that uses a two-part tariff as part of its pricing strategy?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In one paragraph, explain the pricing factor of competitor pricing. Why does what the competitors charge affect pricing? Consider that some companies charge more or less as the competition for the same product.Briefly explain each of the following types of pricing strategy, and give an example of a good or service that is sold using that pricing strategy. Block pricing. Two-part pricing. Multi-period pricing. Loss leading.Caroline and Frances are debating the pricing strategy of several airlines. Caroline argues, “When airlines restrict discounted tickets to people who book well in advance and stay over on a Saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay.” However, Frances says, “The airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts.” Economists generally agree with who?
- What is the difference between bundle pricing and random pricing?Could companies implementing two pricing strategies at the same time? For instance, cost based pricing and competition based pricingWhat’s the total profit in the market when the firm price discriminates between the two groups? How does this compare to when they just charge one price?
- What is predatory pricing?UCOM is able to purchase an exclusive right to sell a soccer channel (SC) in its market area. Let's assume that UCOM pays $150,000 a year for the exclusive marketing rights to SC. Since UCOM has already installed cable to all of the homes in its market area, the marginal cost of delivering Soccer Channel to subscribers is zero. The manager of UCOM needs to know what price to charge for the Soccer Channel service to maximize her profit. Before setting price, she hires an economist to estimate demand for the Soccer channel service. The economist discovers that there are two types of subscribers who value soccer. First are the 4,000 die-hard soccer fans who will pay as much as $150 a year for the new soccer channel. Second, the soccer channel will appeal to about 20,000 occasional TV viewers who will pay as much as $20 a year for a subscription to soccer channel. What is the deadweight loss associated with the non-discriminating pricing policy compared to the price discriminating…List and explain the three kinds of pricing methods. Give an advantage and a disadvantage for each method.
- In 1896, Colgate dental cream was introduced in tubes similar to those we use now. Today, the Colgate-Palmolive Company’s brand of toothpaste is the best-selling toothpaste in the world (ahead of the Crest brand marketed by Procter & Gamble, which was introduced in 1955). While Colgate and Crest enjoy the lion’s share of the toothpaste market, if you view the oral care shelf at your local drugstore or supermarket, you will find over a hundred different varieties of toothpaste. Colgate alone sells over 40 different varieties that are marketed under names ranging from Shrek Bubble Fruit to Colgate Total Advanced Whitening. The high level of product differentiation in the toothpaste market stems from firms introducing new varieties in an attempt to boost their economic profits. In environments where makers of other brands (such as Crest) can easily enter profitable segments of the market, a profitable strategy is to attempt to quickly cover that segment (introducing Shrek Bubble Fruit…In 1896, Colgate dental cream was introduced in tubes similar to those we use now. Today, the Colgate-Palmolive Company’s brand of toothpaste is the best-selling toothpaste in the world (ahead of the Crest brand marketed by Procter & Gamble, which was introduced in 1955). While Colgate and Crest enjoy the lion’s share of the toothpaste market, if you view the oral care shelf at your local drugstore or supermarket, you will find over a hundred different varieties of toothpaste. Colgate alone sells over 40 different varieties that are marketed under names ranging from Shrek Bubble Fruit to Colgate Total Advanced Whitening. The high level of product differentiation in the toothpaste market stems from firms introducing new varieties in an attempt to boost their economic profits. In environments where makers of other brands (such as Crest) can easily enter profitable segments of the market, a profitable strategy is to attempt to quickly cover that segment (introducing Shrek Bubble…Which of the following is shared by both monopolistically competitive markets and prefectly competitive markets?