Pearson eText Economics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879459
Author: Michael Parkin
Publisher: PEARSON+
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Question
Chapter 10, Problem 11APA
(a)
To determine
Goal of the company.
(b)
To determine
The impact if company’s focus is more on pricing and production decision in line with customers rather than profit maximization.
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Students have asked these similar questions
6.
Al's Appliancemart has market power in selling refrigerators. He just got in a
shipment of undamaged refrigerators. Al has determined that there are two
different types of buyers. One group are high demanders who have a more
inelastic demand but tend to be picky about how nice their appliances look (they
won't buy a dented one). Other buyers, low demanders, have a relatively more
elastic demand, but also don't mind having a refrigerator with some dents.
He pays $600 for each refrigerator from his supplier.
3/3
He has calculated that the high and low demander demand functions
follows:
Low: P = 1,000-0.5QL
(QL = 2,000 - 2P)
High: P = 1,600 - QH
(QH = 1,600 – P)
How much profit could Al earn if he sells them as is?
How many should he add dents to (with a hammer) in order to maximize profit?
What price would he then put on the non-dented and the dented refrigerators
and how many would he sell of each? What would his profit then be?
The following graph shows the daily demand curve for bippitybops in Detroit.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
PRICE (Dollars per bippitybop)
OTAL REVENUE (Dollars)
2400
1600
100
90
1200
80
1000
70
800
60
50
40
30
20
2200 +
10
2000 +
1800 +
0
1400 +
Calculate the daily total revenue when the market price is $90, $80, $70, $60, $50, $40, $30, and $20 per bippitybop. Then, use the green point
(triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
(?)
0
**
B
Demand
80
10 20 30 40 50 60 70
QUANTITY (Bippitybops per day)
90 100
Total Revenue
A
?
Total Revenue
2. There are probably 20 or more brands of laundry detergent in the grocery store where your family shops, Make a list of different ways in which producers try to differentiate one detergent brand from Why can some brands have prices that are much higher than the price of others and still sell well?
Chapter 10 Solutions
Pearson eText Economics -- Instant Access (Pearson+)
Ch. 10.1 - Prob. 1RQCh. 10.1 - Prob. 2RQCh. 10.1 - Prob. 3RQCh. 10.1 - Prob. 4RQCh. 10.1 - Prob. 5RQCh. 10.2 - Prob. 1RQCh. 10.2 - Prob. 2RQCh. 10.2 - Prob. 3RQCh. 10.2 - Prob. 4RQCh. 10.3 - Prob. 1RQ
Ch. 10.3 - Prob. 2RQCh. 10.3 - Prob. 3RQCh. 10.4 - Prob. 1RQCh. 10.4 - Prob. 2RQCh. 10.4 - Prob. 3RQCh. 10.4 - Prob. 4RQCh. 10.5 - Prob. 1RQCh. 10.5 - Prob. 2RQCh. 10.5 - Prob. 3RQCh. 10 - Prob. 1SPACh. 10 - Prob. 2SPACh. 10 - Prob. 3SPACh. 10 - Prob. 4SPACh. 10 - Prob. 5SPACh. 10 - Prob. 6SPACh. 10 - Prob. 7SPACh. 10 - Prob. 8APACh. 10 - Prob. 9APACh. 10 - Prob. 10APACh. 10 - Prob. 11APACh. 10 - Prob. 12APACh. 10 - Prob. 13APACh. 10 - Technological and Economic Efficiency Use the...Ch. 10 - Prob. 15APACh. 10 - Prob. 16APACh. 10 - Prob. 17APACh. 10 - Prob. 18APACh. 10 - Prob. 19APACh. 10 - Prob. 20APACh. 10 - Prob. 21APACh. 10 - Prob. 22APACh. 10 - Prob. 23APA
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