Calculation of total revenue, marginal revenue and profit.

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Answer 1

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Subpart (b):

To determine

Price discrimination.

Subpart (c):

To determine

Calculation of profit.

Subpart (d):

To determine

Consumer surplus and producer surplus.

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List and explain the three kinds of pricing methods. Give an advantage and a disadvantage for each method.

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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

Answer 2

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Subpart (b):

To determine

Price discrimination.

Subpart (c):

To determine

Calculation of profit.

Subpart (d):

To determine

Consumer surplus and producer surplus.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Subpart (b):

To determine

Price discrimination.

Subpart (c):

To determine

Calculation of profit.

Subpart (d):

To determine

Consumer surplus and producer surplus.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Subpart (b):

To determine

Price discrimination.

Subpart (c):

To determine

Calculation of profit.

Subpart (d):

To determine

Consumer surplus and producer surplus.

Expert Solution & Answer

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Answer 5

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Subpart (b):

To determine

Price discrimination.

Subpart (c):

To determine

Calculation of profit.

Subpart (d):

To determine

Consumer surplus and producer surplus.

Answer 6

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Answer 7

Chapter 16, Problem 16.2.18PA

Subpart (a):

To determine

Calculation of total revenue, marginal revenue and profit.

Answer 8

Subpart (b):

To determine

Price discrimination.

Answer 9

Subpart (b):

To determine

Price discrimination.

Answer 10

Subpart (c):

To determine

Calculation of profit.

Answer 11

Subpart (c):

To determine

Calculation of profit.

Answer 12

Subpart (d):

To determine

Consumer surplus and producer surplus.

Answer 13

Subpart (d):

To determine

Consumer surplus and producer surplus.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 16 - What is the law of one price? What is arbitrage?Ch. 16 - Prob. 16.1.2RQ Ch. 16 - Prob. 16.1.3PA Ch. 16 - Prob. 16.1.4PA Ch. 16 - Prob. 16.1.5PA Ch. 16 - Prob. 16.1.6PA Ch. 16 - Prob. 16.2.1RQ Ch. 16 - Prob. 16.2.2RQ Ch. 16 - Prob. 16.2.3RQ Ch. 16 - Prob. 16.2.4RQ

Calculation of total revenue, marginal revenue and profit.

Solution Summary: The author explains the calculation of total revenue, marginal revenue and profit for a monopolist firm.

Calculation of total revenue, marginal revenue and profit.

Price discrimination.

Calculation of profit.

Consumer surplus and producer surplus.

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Chapter 16 Solutions