MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Question
Chapter 11, Problem 2CACQ
(A)
To determine
The firm's optimal price , output and profits when the same unit price is charged to all customers is to be calculated.
(B)
To determine
The firm's optimal price, quantity and profit under first degree
(C)
To determine
Optimal price , output and profit in case of two part pricing is to be ascertained.
(D)
To determine
Firm's optimal price, output and profit in case of block pricing is to be calculated.
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Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm’s optimal price, output, and the resulting profits for each of the following scenarios: a. You charge the same unit price to all consumers. b. You engage in first-degree price discrimination. c. You engage in two-part pricing. d. You engage in block pricing.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 − 4P and C(Q) = 4 + 4Q + Q2a. Find the inverse demand function for your firm’s product. b. Determine the profit-maximizing price and level of production. c. Calculate your firm’s maximum profits. d. What long-run adjustments should you expect? Explain
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q) = 4 + 4Q + Q2.
a. Find the inverse demand function for your firm’s product.
b. Determine the profit-maximizing price and level of production.
c. Calculate your firm’s maximum profits.
d. What long-term adjustments should you expect? Explain.
Chapter 11 Solutions
MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
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