Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

3) Second Degree Price Discrimination
This question is demanding! A firm wants to price discriminate using quantities (nonlinear
pricing or 2nd degree price discrimination). It faces two demand curves where each
consumer only buys one unit of the good.
Group 1: P = 60-2Q
Group 2: P = 80-Q
Marginal cost is constant and equals MC=20
(a) Before the firm price discriminates, what are the two quantities and prices?
(4) Second Degree Price Discrimination
Further develop Question (3). The company now changes Q1 to maximize its surplus.
(a) What are the profit maximizing quantities?
(b) What was the consumer surplus for the larger quantity before price discrimination.
After price discrimination, what is the remaining consumer surplus for the larger
quantity?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91078273
  • Price:- $40

Priced at Now at $40, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question you are an economist who wants to know how risk of

Question: You are an economist who wants to know how risk of on-the-job injury affects peoples' wages. Studying construction workers (who have a substantial risk exposure), you discover that they earn very little more th ...

Question between 1992 and 2002 the university of

Question: Between 1992 and 2002, the University of California's stock market holdings underperformed market averages by $2.3 billion. Officials pointed out that the loss was unimportant because they actually grew by $20 ...

Question 1 consider the following utility function and

Question: 1. Consider the following utility function and corresponding marginal rate of substitution for consumption, C and leisure, and L: U = CL square ( just the L is square, the C is normal) and MRS = - L/2C . The co ...

Question 1 suppose demand and supply have constant

Question: 1. Suppose demand and supply have constant elasticity equal to 3. What happens to equilibruim price and quantity when the demand increases by 3% and supplu decreases by 3%? 2. Show that elasticity can be expres ...

Question 1 identify one or two most important weaknesses

Question: 1) Identify one or two most important weaknesses/ problems in mental health policy and service delivery for children and adolescents today. 2) Identify recommendations to address these weaknesses/problems. What ...

Question also during the 1990s the ratio of capital

Question: Also during the 1990s, the ratio of capital spending to GDP rose, while the personal saving rate declined almost to zero. The profit ratio did not rise very much; hence almost the entire increase in saving came ...

Question explain these questionsa compare the marginal

Question: Explain these questions a. Compare the Marginal Revenue Curve for a firm in the PC-market with the Marginal Revenue Curve for the monopolist. b. Explain in your own words why a company that creates a negative e ...

Question what happens to the employment decision if an

Question: What happens to the employment decision if an employer is a price-taker in the market for its output but faces an upward-sloping supply curve of labor, that is, it can only hire additional workers if it raises ...

Question an orange grower in florida faces a dilemma the

Question: An orange grower in Florida faces a dilemma. The weather forecast is for cold weather, and there is a 50% chance that the temperature tonight will be cold enough to freeze and destroy his entire crop, which is ...

Question - list 4 characteristics of the market system or

Question - List 4 Characteristics of the Market System or Capitalism. Define or Identify the following:- a. Invisible Hand b. Complementary goods c. Durable vs Non-durable Goods d. Laissez-faire Doctrine.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved