Question

2. Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm's opti- mal price, output, and the resulting profits for each of the following scenarios: Price 1104 100 90 MC = AC - Quantity 5 6 7 8 9 10 11 12 13 14 15 a. You charge the same unit price to all consumers. b. You engage in first-degree price discrimination. anagerial Economics and Business Strategy C. You engage in two-part pricing. d. You engage in block pricing.3. You are the manager of a firm that charges customers $16 per unit for the first unit purchased, and $12 per unit for each additional unit purchased in excess of one unit. The accompanying graph summarizes your relevant demand and costs. a. What is the economic term for your firm's pricing strategy? b. Determine the profits you earn from this strategy. c. How much additional profit would you earn if you were able to perfectly price discriminate? Price 19 4 18 17 16 15 MC = AC- D Quantity 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7