Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 1IAPA
To determine
To explain:
If it will be in the self-interest of Company M to set the price of windows at a different price for a version stripped of IE.
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Pic 1 :
You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers:
Price
Adults
Children
(Dollars)
(Tickets)
(Tickets)
10
0
0
9
100
0
8
200
0
7
300
0
6
300
0
5
300
100
4
300
200
3
300
200
2
300
200
1
300
200
0
300
200
To maximize profit, you would charge $ ?
for an adult's ticket and $ ?
for a child's ticket. Total profit in this case would be $ ?
The city council passes a law prohibiting you from charging different prices to different customers.
Now you set a price of $ ?
for all tickets, resulting in $ ?
in profit.
Pic 2 :
Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination.…
How can you defend Walmart according to its pricing actions?
Note: By defending Walmart, you are not only defending them, but you also defending the public’s free choice to spend their money at the international hyper store instead of the local businesses (international hypermarket instead of local independent stores). Prepare strong reasons for believing that they are not wrong.
Monopoly firms are a lot more profitable than perfectly competitive firms. The primary reason is that the monopoly firm charges a price that is greater than marginal cost at the profit maximizing quantity. Explain this statement with a graph. Specifically, explain how the profit maximizing quantity and price are determined.
Chapter 16 Solutions
Foundations of Economics, Student Value Edition (8th Edition)
Ch. 16 - Prob. 1SPPACh. 16 - Prob. 2SPPACh. 16 - Prob. 3SPPACh. 16 - Prob. 4SPPACh. 16 - Prob. 5SPPACh. 16 - Prob. 6SPPACh. 16 - Prob. 7SPPACh. 16 - Prob. 8SPPACh. 16 - Prob. 9SPPACh. 16 - Prob. 10SPPA
Ch. 16 - Prob. 11SPPACh. 16 - Prob. 1IAPACh. 16 - Prob. 2IAPACh. 16 - Prob. 3IAPACh. 16 - Prob. 4IAPACh. 16 - Prob. 5IAPACh. 16 - Prob. 6IAPACh. 16 - Prob. 7IAPACh. 16 - Prob. 8IAPACh. 16 - Prob. 9IAPACh. 16 - Prob. 10IAPACh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Prob. 3MCQCh. 16 - Prob. 4MCQCh. 16 - Prob. 5MCQCh. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQ
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