-club sells videocassette in two separable markets .the marginal cost of each cassette is $2. For the first market, demand is giv n by Q1=20-2.5p1 The demand equation for the second market is Q2=20-5p2 a)If the firm used third-degree price discrimination.what will be the profit maximizing price and?quantity in each market?how much economic profit maximizing will the firm earn? State different conditions required for price discrimination to occur effectively

Q: Use the information in the graph to the right to find the values for the following at an output…

A: The marginal cost refers to the change in total cost of production that comes from producing an…

Q: 4. A ski resort faces daily demand given by p = a - Q, where a varies from day to day. Over a three-…

A: Dynamic pricing refers to a pricing strategy in which the price of a product or service is adjusted…

Q: Both types of insurance customers receive the same insurance policy. Choice 1 of 2:True Choice 2 of…

A: In a symmetric information equilibrium, both types of insurance customers do not receive the same…

Q: A monopolist can produce at constant average and marginal costs of AC =  MC = 5. The firm faces a…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: What is protection and free trade

A: Protection and free trade are two contrasting strategies to international change and financial…

Q: Solve with complete solution and draw the cash flow diagram A project your firm is considering for…

A: Note: “Since you have posted a question with multiple sub-parts, we will provide the solution only…

Q: "Italy includes cocaine, prostitution and black market alcohol in GDP figures" (The Independent,…

A: A crucial economic parameter known as the gross domestic product determines the total value of all…

Q: A firm faces a production function given by q = √kl where q is the output, k is the firm’s amount of…

A: The total cost of production is the simple aggregate of the fixed cost and variable costs, in the…

Q: Sylvia, a writer for a newspaper, interviewed top managers at 50 large corporations. All of the…

A: Monetary policy- a policy by the central bank. It aims at managing the interest rate and money…

Q: 5. Problems and Applications Q5 Edison owns a water pump. Because pumping large amounts of water is…

A: Using the given information’s, we can construct the table for supply schedule as follows.

Q: Consider the given simple economy. Sheepnip Co. makes sheep feed. Better-bald Inc. purchases sheep…

A: GDP stands for Gross Domestic Product. It is a measure used to quantify the economic activity and…

Q: (d) Suppose I estimate the following model: In Y 100 12.45 ln X Then according to my model: If X…

A: Y and X are inversely related as coefficient of X is negative. Y is a dependent variable and X is an…

Q: Assume that England and Spain can switch between producing cheese and producing bread at a constant…

A: A country or a person has a comparative advantage in the good which it produces at a lower…

Q: 3. A monopolist can produce at constant average and marginal costs of AC = MC = 5. The firm faces a…

A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…

Q: 10. Which of the following countries is not part of the North American Free Trade Agreement (NAFTA)?…

A: NAFTA(The North American Free Trade Agreement) was a trade agreement signed by Canada, Mexico, and…

Q: c) Suppose the inverse demand curve in a market is D(p) =a-bp, where D(p) is the quantity demanded…

A: In this case, leader and follower firms are discussed and Stackelberg model is discussed here.…

Q: Fiat currencies only have value based upon exchange, whereas commodity money also has value. A.…

A: Money refers to a medium of exchange that is widely accepted in transactions for goods, services,…

Q: You deposit $1,000 in a bank account that pays a fixed interest rate of 5% per year and it compounds…

A: Given Present value P=$1000 Rate of interest =5% per year compounded annually We need to find the…

Q: A sustainable organization is an efficient organization. This means that workflows are automated…

A: Efficiency: The ability to achieve maximum productivity with minimum wasted effort or resources.…

Q: Consider a small open economy with no perfect capital mobility whose Central Bank is explicitly…

A: Governments have to strike an equilibrium between opposing economic goals. For instance, fostering…

Q: Suppose that the exchange rate ($/Euro) is 1.10 on July 1st. Now suppose that the Federal Reserve…

A: With increase in money supply leads to decrease the interest rates as price of bonds increase. The…

Q: As the value of its currency approached point B, the central bank of Jablor most likely intervened…

A: Currency depreciation signifies a reduction in the worth of a currency relative to others, resulting…

Q: If the exchange rate between the United States dollar and the Indian rupee changes from $1=60 rupees…

A: Exchange rate is the price of one country’s currency in terms of other country’s currency.

Q: Provide a graphical analysis of the effect of a temporary but persistent increase in total factor…

A: The Real Business Cycle (RBC) model is a macroeconomic framework that analyzes the fluctuations in…

Q: You deposit $3,000 in a bank at an annual interest rate of 7%. What will your bank balance be in 27…

A: Formula for future value is given as:  F = P(1+R)t F : future value P : Present value R : per annum…

Q: The Fearless Champions Outdoor Company is a catalogue sales operation that specializes in outdoor…

A: The least square method involves minimising the sum of the squares of the offsets (residual…

Q: Your friend Ginny really struggles with understanding graphs. She shows you the following…

A: Demand curve shows different levels of quantity demanded at different price levels.

Q: Using the midpoint method, the price elasticity of demand for cashews between the price levels of…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: When was the Solow growth model developed and what was significant about that period? What did it…

A: In the below steps, we will be explaining the solow growth model and endogenous growth model. The…

Q: This table provides some information about hourly output and revenue for a firm in a competitive…

A: Marginal revenue measures the change in total revenue due to a change in quantity. Formula: MR =…

Q: QUESTION 5 Assume Country A is planning to build a virtual public library that will give all its…

A: *Hi there , as per our guidelines we can only solve 1 question at a time . So we are solving…

Q: Provide a graphical analysis of the effect of a temporary but persistent increase in total factor…

A: Since there are more than three subparts and we are not allowed to solve more than 3, so the…

Q: 4. The government decides to pursue a policy of keeping the amount of tax revenue it collects to be…

A: Tax revenue alludes to the aggregate sum of money gathered by a government through taxation. It…

Q: Which of the following is not a reason for the downward slope of the aggregate demand curve? O a.…

A: An Aggregate demand curve represents the total amount of goods that are demanded in an economy at…

Q: Assuming that consumers are identical, use an appropriate diagram to show how a monopoly that knows…

A: Monopoly market structure refers to the presence of a single seller in the market with a good that…

Q: Hobby hunter Jack decides what to do the next weekend. He can either stay at home and watch movies…

A: A representation of a game that captures the sequential nature of a game and includes all possible…

Q: Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly…

A: Disclaimer: Since it is a multipart question, I am providing you with the answer to the first three…

Q: Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and…

A: Production capacity: 1800 loaves  Wage rate: $8 Per employee working capacity: 160

Q: Show illustration and explain the special cases of production functions "Inputs to…

A: In economics, the production function refers to the physical output of a production process to…

Q: Robert Fogel is an economic historian best known for work suggesting that a significant factor in…

A: The growth of economy in long run refers to a sustained and continuous increase in an economy's…

Q: Show illustration and explain the special cases of production functions "Inputs to production that…

A: In economics, the production function relates physical output of a production process to physical…

Q: The government. can provide investors with the necessary information to assess the capacity of a…

A: Government financial statement includes information on government revenue, expenses, assets,…

Q: What argument, based on macroeconomic theory, might a government use to justify shutting down a…

A: Government policies allude to the deliberate activities, decisions, and regulations carried out by a…

Q: Assume that the economy is currently in short run equilibrium but experiencing an inflationary gap.…

A: An inflationary gap refers to a situation in an economy where aggregate demand exceeds the economy's…

Q: Only typed answer and please don't use chatgpt  Suppose the tax multiplier in an economy is -3. How…

A: The rate at which a change in taxes will effect the total spending (the GDP) is known as tax…

Q: Lump sum taxes it to model theoretically but foalet a b. have a small excess burden c. have no…

A: A lump sum tax is the fixed tax amount imposed on the consumer. It is not related to the quantity of…

Q: When banks hold excess reserves: a) the reserve ratio should be lowered. b) the money multiplier…

A: Excess reserves are the cash reserves that a bank holds well beyond the required essentials set by a…

Q: What methodology do the authors use and why? Are there any implications of the finding for policy…

A: In the given experiment, the bidding behavior of two groups is under study. There are two groups…

Q: When countries place tariffs on imports O a. the importing country gains because they get the goods…

A: A tariff is a tax or duty imposed by a government on imported or exported goods. It is a form of…

Q: Which area(s) represent(s) CONSUMER SURPLUS at both P1 (associated with S1) and P2" (associated with…

A: The disparity between what consumers are willing to pay (WTP) for a good or service and what they…

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.