Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: "Price discrimination is not possible when a good is sold in a perfectly competitive market." False, because perfectly competitive firms do not profit maximize by setting marginal revenue equal to marginal cost None of these choices True, because perfectly competitive firms have no market power False, because perfectly competitive firms have market power Which of the following kinds of price discrimination occurs when each customer in a single market is charged the maximum price he or she is willing to pay? Perfect price discrimination Third-degree price discrimination Second-degree price discrimination This is not an example of price discrimination
Q: Suppose that your demand schedule for pizza is as follows: Price (Dollars) Quantity of Pizzas…
A: Price elasticity of demand refers to a measure to explain the responsiveness of the quantity…
Q: Parking rates at public carpark spaces have increased substantially in the metropolitan area. Using…
A: Demand in the market represents the consumer's willingness to pay for a particular good and service…
Q: Supply in a Competitive Market - End of Chapter Problem Consider the accompanying cost curves for…
A: A competitive market is one where there are a large number of firms or producers for a certain good.…
Q: An ag firm is looking to produce 30 units of output. If the firm were to operate at the least-cost…
A: Detailed explanation:1. Cost Minimization in ProductionIn this situation, a company's objective is…
Q: Shifts of Labor Supplv and y. (B) Pick the panel that would best model the following scenario:…
A: The objective of the question is to identify the correct panel that models the scenario where…
Q: The Figure below shows the outlays and revenues for the government of Pianoland. Outleys, Revenues…
A: A country's goods and services produced within its territory are referred to as gross domestic…
Q: Read the following situation and then answer the questions. You live on the world's most isolated…
A: The barter system is a method of trading where goods and services are traded directly. The is no…
Q: 1 At the new long-run equilibrium, A. real GDP and the unemployment rate will remain the same, but…
A: Long-run equilibrium occurs when prices have fully adjusted to the production costs, the economy…
Q: 4. Small Open Economy and trade deficit Suppose that Ecuador is a small open economy running a trade…
A: The blue horizontal line represents the world interest rate (r*), which is fixed for a small open…
Q: If the hourly wage for workers is $60 and the firm's price per product is $12, how many workers will…
A: This issue is about finding out what the best number of workers a company will require in order to…
Q: What will the new price equal? 300 400 600 800
A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…
Q: Questions 5 - 9: Mary owns a cookie shop. One day, she decides to have a day and gives away 12…
A: A demand schedule is a tabular representation of the inverse relationship between price and quantity…
Q: Question: Imagine a small town where all residents buy their groceries from two stores: GreenGrocer…
A: The issue introduced in the situation includes a serious evaluating methodology between two…
Q: INFLATION RATE (Percent) 1 2 5. Expectations and the Phillips curve The following graph shows an…
A: Certainly! We're looking at the Phillips Curve, which illustrates the short-run tradeoff between…
Q: What happens in the market for beach towels,now that the season is over? Graph and explain
A: Demand refers to the quantity of a good or service that consumers are willing and able to purchase…
Q: In the graph, the demand for hot dog buns has shifted to the left because the price of hot dogs has…
A: The given data are-With this increase in the price(P) of hot dogs, the demand(D) curve of hot dog…
Q: The following table provides some information on government spending (G) and tax revenues (T) at…
A: Real GDP measures the level of production of goods and services after adjusting for inflation in an…
Q: provide detailed and straightforward solution with steps, show proper calculations please.
A: In a scenario where a firm is employing equal numbers of labor and capital inputs, and paying $10…
Q: Which statement best explains the relationship among price levels, nominal and real exchange rates,…
A: Money supply(MS) refers to the total money amount within an economy. It influences interest rates,…
Q: Question-2 (Cost Minimization) A firm uses labor and machines to produce output according to the…
A: For the given output level of the firm and per unit cost of various inputs like capital (K) and…
Q: What is deregulation? Who benefitted most from deregulation of the financial services industry?
A: The deregulation of the financial services industry, particularly prominent in the latter half of…
Q: COSTS AND REVENUE (Dollars per shirt) TOTAL COST AND REVENUE (Dollars) uppose Nick runs a small…
A: A competitive market maximizes profit when its . The firm produces goods till its . It will stop…
Q: 7. Lump-Sum Tax The city government is considering two tax proposals: A lump-sum tax of $300 on each…
A: Lumpsum tax is one of the special forms of taxation that is based on a fixed amount. It does not get…
Q: Jekxkmx
A: The elasticity of supply refers to the percentage change in the quantity supplied of a good or…
Q: What factors have contributed to entry barriers being lowered for many entrepreneurs? O a. decline…
A: In recent years, the landscape of entrepreneurship has undergone significant transformations,…
Q: equality Ind the povert The following table summarizes the income distribution for the town of…
A: Income inequality refers to the uneven distribution of income in the economy. The less equal the…
Q: 3.D.3B Suppose that u(x) is differentiable and strictly quasiconcave and that the Walrasian demand…
A: Approach to solving the question:Detailed explanation: Examples: Key references:
Q: "Explore the economic consequences of remote work trends accelerated by the COVID-19 pandemic.…
A: The issue is to investigate the financial outcomes of the sped up pattern towards remote work…
Q: The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars)…
A: Demand basically refers to the quantity of a good or service that a consumer is willing and able to…
Q: Suppose the City of Oolagah is considering building a new water treatment facility to better address…
A: The objective of this question is to calculate the Net Present Value (NPV) of a proposed water…
Q: None
A: The claim that "S1 is more inelastic than S2" implies that, in contrast to the supply curve…
Q: 8. Short-run and long-run effects of a shift in demand Suppose that the perfectly competitive tuna…
A: In this question a perfect competitive markets, the tuna industry flourishes in long term balance,…
Q: (Table: Tatiana's Production Function for Cherries) Use Table: Tatiana's Production Function for…
A: The following table shows the production function of person T- Land (hectares)Labor(L)Total…
Q: Hi dear expert Hand written solution is not allowed.
A: Percentage change in tennis balls, golf balls and bottle of Gatorade can be calculated as follows:…
Q: Price Σ 3 2 Supply Demand 40 50 60 Quantity If the price starts out at $4, what will surely happen…
A: The setting discussed is a situation concerning economic scenarios presenting supply and demand…
Q: All of the following are producers of external secondary data EXCEPT 1. government 2. trade…
A: Approach to solving the question: Detailed explanation:Libraries primarily serve as repositories for…
Q: 5. Expectations and the Phillips curve The following graph shows an economy in long-run equilibrium…
A: The Phillips curve is a graphical representation of the inverse relationship between inflation and…
Q: foreign exchange market
A: The foreign exchange market refers to the worldwide marketplace in which currencies are offered and…
Q: The National Health Service (NHS) in the UK was founded in 1948 and was the first state-run free…
A: The study of resource allocation and decision-making procedures in healthcare systems is known as…
Q: A profit-maximizing firm will OMRP W OMRP W OMRP-W OMP MR MRP
A: Marginal revenue product of labor (MRPL) measures the change in a firm's revenue due to hiring…
Q: Find a very weakly dominant strategy that is not strictly dominant. 3) c; 5) x; 7) z 4) d; 2) b; 6)…
A: A weakly dominant strategy is a concept in game theory that describes a strategy that is at least as…
Q: please give me correct answer and don't reject of this question otherwise i complain to bartelby
A: Detailed explanation:Of course! The willingness to pay for a public product at various quantities…
Q: Vipsana's Gyros House sells gyros. She incurs a fixed cost of $120 per day. Vipsana pays $60 per day…
A: All of the associated costs, including labour, fixed costs, and ingredient prices, must be taken…
Q: A monopolist's costs are given by: C(Q)=4Q2+100+ 100 and it faces the demand function: A. B. C.…
A: Business economics is concerned with navigating complex market scenarios that require significant…
Q: Consider a BERTRAND duopoly where each firm's price MUST BE IN WHOLE DOLLARS. Each firm incurs a $70…
A: For Firm 1 profit determination, the quantity that the firm will sell at the price offered and then…
Q: 3. A firm has fixed cost of $90.00 and variable costs as indicated in the table below. Complete the…
A: The fixed cost(FC) of the given firm is $90. The variable costs(TVC) at different output or total…
Q: 1. The demand function for a certain brand of CD is given by p = -0.01x2 -0.2x + 10 where p is the…
A:
Q: Price Level AD1 AD₂ AD2 Real Domestic Output, GDP Refer to the accompanying graph. What combination…
A: Aggregate demand (AD) represents or shows the total demand for final goods and services in an…
Q: Question-4 (Market) Consider a competitive industry with a large number of firms, all of which have…
A: Marginal cost is the cost of producing an additional unit of the product by the firm while average…
Q: Monopolistic Competition Consider the following graph, (graph 1) for the short run equilibrium for a…
A: A monopolistically competitive market is one where a large number of firms operate with each firm…
Step by step
Solved in 4 steps
- Price discrimination does not occur in perfectly competitive markets, such as the market for wheat. Which of the following explains why farmers do not charge different buyers different prices for wheat? O Each buyer has the same willingness to pay for wheat as every other buyer of wheat. Because wheat is a homogeneous product, any bushel of wheat must sell at the same price as every other bushel of wheat. Farmers don't use price discrimination to sell wheat because this would lead to an increase in the number of wheat farmers. This would lower profits wheat farmers would earn in the long run. The cost of using price discrimination to sell wheat would be greater than the profits that would result from price discrimination.Suppose that YouYeet is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price YouYeet must take as given is . Fill in the price and the total, marginal, and average revenue YouYeet earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Trucks) (Dollars per truck) (Dollars) (Dollars) (Dollars per truck) 0 0 – 1 2 3 The demand curve faced by YouYeet is identical to which of its other curves? Check all that apply. Supply curve Marginal revenue curve Average revenue curve Marginal cost curveAssume a perfectly competitive market. Draw the average total cost, average variable cost,marginal cost, and marginal revenue curves for a good. Determine the profit-maximizing levelof output given that the price of the good is above the minimum average variable cost butbelow the minimum average total cost. Is the profit at the chosen price point positive,zero, or negative? Shade the area representing profit. Assume a monopoly market. Draw the average total cost, marginal cost, marginal revenue,and demand curves for a good. At what price will the monopolist sell? What is theprofit-maximizing level of output at this price? Shade the area representing profit.
- enter your response here $ Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitiveLOADING... and that the market price for a crate of oranges is $10 per crate. Part 2 Fill in total revenue, average revenue, and marginal revenue in the table below. (Enter your responses as integers.) Part 3 Crates of Oranges Market Price (per crate) Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR) 0 $10 $ enter your response here $ enter your response here 3 10. 410 enter your response here here enter your response here enter your response here 2 10 enter your response here. enter your response here enter your response here 0 long dash long dash 1 10 enter your response here enter your response here enter your response here 5 10 enter your response here enter your response here enter your responseSuppose that each firm in a competitive industry has thefollowing costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm’s quantity produced. The marketdemand curve for this product is Demand: QD = 120 – P where P is the price and Q is the total quantity of the good.Currently, there are 9 firms in the market. a. What is each firm’s fixed cost? What is its variable cost?Give the equation for average total cost. b. Graph average total cost curve and the marginal cost curvefor q from 5 to 15. At what quantity is average total cost curve atits minimum? What us marginal cost and average total cost at thisquantity? c. Give the equation each firm’s supply curve. d. Give the equation for the market supply curve for the shortrun in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market inthe short run? f. In this equilibrium, how much does each firm produce?Calculate each firm’s profit or loss. Is there incentive for…Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is S Suppose that Zoomba is one of over a dozen competitive firms in the Eugene area that offers moving truck rentals. Quantity Price (Trucks) 0 QUANTITY (Hundreds of small trucks) 1 2 3 9 10 5 Average revenue curve Supply curve Marginal cost curve Marginal revenue curve B PRICE (Dollars per small truck) 8 8 8 8 a Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Total Revenue Marginal Revenue Average Revenue (Dollars per truck) (Dollars) (Dollars) (Dollars per truck) 8 0 8 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. (?)
- Suppose that the market for chicken momos is perfectly competitive with ten firms producing momos. Tasty treat is one of the ten price-takers in the market for momos. The accompanying tables show the demand schedule for momos in Dhaka and cost schedule for "Tasty Treat". DEMAND SCHEDULE Price (BDT per plate) Quantity demanded (plate per hour) 10 900 25 675 30 600 40 450 50 300 70 0 COST SCHEDULE OF TASTY TREAT Output (plate per hour) Marginal Cost (BDT per extra plate) Average Variable Cost (BDT per plate) Average total cost (BDT per plate) 40 20 25 90 50 10 10 75 60 30 20 55 70 50 23 50 80 70 35 60 90 85 50 77 a) What is the value of the shut-down price and break-even price for Tasty Treat?How did you figure that out?b) Write down the individual supply schedule of chicken momos for Tasty Treat and the industry supply schedule for chicken momos.c) Plot the market demand and supply curves for chicken momos and find the equilibrium price and…Consider the competitive market for rhenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 0 90 80 70 60 V 50 40 ATC 30 20 AVC MC D COSTS (Dollars per pound) PRICE (Dollars per pound) 100 90 80 70 60 The following graph plots the market demand curve for rhenium. 50 40 30 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. 20 100 10 10 0 0 0 5 0 15 20 30 35 40…4. Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 +1/2q^2Marginal cost: MC = q; where q is an individual firm’s quantity produced. The market demand curve for this product is Demand: Demand: QD = 120 − P, where P is the price and Q is the total quantity of the good in the market. Currently, there are 9firms in the market. In each following question, please explain how you find the answer!4.1 What is the equilibrium price and quantity for this market in the short run?
- Price and cost (dollars per pound of steak) 20.00 18.00 S=MC 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 MR D 1,000 2,000 3,000 4,000 5,000 Quantity (pounds of steaks per hour)Generally, when preferences for a good rise, demand for the good rises. If a perfectly competitive market starts in long-run in the industry and equilibrium, holding all else constant, this will result in a higher market price, which will lead to the market. This causes price to None of these 3 possible answers listed here are correct. economic losses; attracts new firms into; fall economic losses; causes some firms to leave; rise further O positive economic profits; causes some firms to leave; rise furtherBelow is the demand schedule for wholesale pallets of ice cream. Assume that the marginal cost of supplying a wholesale pallet of ice cream is a flat $40 per pallet. Price Quantity Total Revenue Total Cost Profit $100 40 $90 50 $80 60 $70 70 $60 80 $50 90 $40 100 First, complete the table above for TR, TC, and profit. If this were a competitive industry, where P=MC, what would be the price and quantity of wholesale ice cream? If ice cream were supplied instead by a profit-maximizing monopoly, what would be the price and quantity? If Ben and Jerry were to form a collusive duopoly for the production of ice cream, what would be the price and industry quantity? If Ben and Jerry split the market in d. evenly, what would be the output and profit for each of them? What if Ben were to cheat on the cartel and produce a higher output by 10 pallets: What is Ben’s resulting output…