O O A O E D OC Chesterfield Pharmaceuticals is a price discriminating monopolistic producer of...

 

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O O A O E D OC Chesterfield Pharmaceuticals is a price discriminating monopolistic producer of an effective arthritic drug. It can be taken by humans as well as dogs and cats. Humans that suffer from the debilitating condition are willing to pay the following prices and quantities for the miracle cure and are illustrated in Schedule (1). The Pets' owners are willing to pay the following prices and quantities shown in Schedule (2). B Schedule (1) Price Quantity $115.00 0 $100.50 1 $83.00 2 $71.00 3 $61.50 $55.00 $48.00 $42.50 $37.00 $33.00 9 $29.50 10 Assume that the marginal cost and the average total cost are always $33 for production and sale in both markets. 4 C d. e. 5 6 7 8 Schedule (2) Price $71.66 $63.00 $55.10 $48 $42.00 $37.00 $33.00 $29.66 Q= 9; P= 39 Q= 6; P= 33 Q=33; P= 33 Indeterminate Quantity 0 AWN fot 1 If Chesterfield cannot successfully prevent the product from being resold (and in other words, cannot succeed at price discrimination), AND if Chesterfield becomes a perfectly competitive producer, what will be the quantity sold and the price that prevails in the market? a. Q= 15; P= 33 b. 2 3 5 6 7 O O A O E D OC Chesterfield Pharmaceuticals is a price discriminating monopolistic producer of an effective arthritic drug. It can be taken by humans as well as dogs and cats. Humans that suffer from the debilitating condition are willing to pay the following prices and quantities for the miracle cure and are illustrated in Schedule (1). The Pets' owners are willing to pay the following prices and quantities shown in Schedule (2). B Schedule (1) Price Quantity $115.00 0 $100.50 1 $83.00 2 $71.00 3 $61.50 $55.00 $48.00 $42.50 $37.00 $33.00 9 $29.50 10 Assume that the marginal cost and the average total cost are always $33 for production and sale in both markets. 4 C d. e. 5 6 7 8 Schedule (2) Price $71.66 $63.00 $55.10 $48 $42.00 $37.00 $33.00 $29.66 Q= 9; P= 39 Q= 6; P= 33 Q=33; P= 33 Indeterminate Quantity 0 AWN fot 1 If Chesterfield cannot successfully prevent the product from being resold (and in other words, cannot succeed at price discrimination), AND if Chesterfield becomes a perfectly competitive producer, what will be the quantity sold and the price that prevails in the market? a. Q= 15; P= 33 b. 2 3 5 6 7

Answer rating: 100% (QA)

The correct option is 2 A with Q 15 P 33 In perfect competition eq... View the full answer