A firm charges different prices to two groups. Would the firm ever operate where it was suffering a loss from its sales to the low-price group? Explain.
Answer to relevant QuestionsDoes a monopoly’s ability to price discriminate between two groups of consumers depend on its marginal cost curve? Why or why not? In Q&A 10.2, calculate the firm’s profit with and without a ban against shipments between the two countries.Using math, show why, under two-part pricing, customers who purchase fewer units pay more on average per unit than do customers who buy more units.The inverse demand curve facing a resort hotel is p = 300 – Q during the high season and p = 100 – Q during the low season. The resort’s marginal cost is $ 50 per night in cleaning costs for the room and general ...What is the homogeneous- good duopoly’s Nash- Cournot equilibrium if the market demand function is Q = 1,000 – 1,000p and each firm’s marginal cost is $ 0.28 per unit?
Post your question