A computer maker found out, through market research, that the quantity demanded Ps among students for...

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A computer maker found out, through market research, that the quantity demanded Ps among students for its new model of notebook computer this month is Qs = 6- and 100 the quantity demanded among professionals for its new model of notebook computer this month is Qp = 14 - where prices are unit prices measured in dollars and the quantity Pp 100' is measured in millions. Assume there are only these two types of buyers. The marginal cost of the computer is constant at $300 per computer. The seller wants to maximize the profit this month by charging a unit price for the notebook computer. Task 1: If the seller can offer students a student discount, then what is the best price for the computer and how big should the student discount be? Task 2: If the seller is banned from offering discounts to students by some authority and are not allowed to charge different prices to students and professionals, what is the 3 best uniform price for the computer per unit? Task 3: Which way of pricing gives the seller a higher profit? Which way of pricing gives students a higher consumer surplus and which way of pricing gives professionals a higher consumer surplus? Why? Task 4: Is the society better off when different prices are banned? Calculate the total surplus change. A computer maker found out, through market research, that the quantity demanded Ps among students for its new model of notebook computer this month is Qs = 6- and 100 the quantity demanded among professionals for its new model of notebook computer this month is Qp = 14 - where prices are unit prices measured in dollars and the quantity Pp 100' is measured in millions. Assume there are only these two types of buyers. The marginal cost of the computer is constant at $300 per computer. The seller wants to maximize the profit this month by charging a unit price for the notebook computer. Task 1: If the seller can offer students a student discount, then what is the best price for the computer and how big should the student discount be? Task 2: If the seller is banned from offering discounts to students by some authority and are not allowed to charge different prices to students and professionals, what is the 3 best uniform price for the computer per unit? Task 3: Which way of pricing gives the seller a higher profit? Which way of pricing gives students a higher consumer surplus and which way of pricing gives professionals a higher consumer surplus? Why? Task 4: Is the society better off when different prices are banned? Calculate the total surplus change.

Answer rating: 100% (QA)

Task 1 To maximize profit we need to find the price that maximizes the revenue Revenue is calculated ... View the full answer