Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Q1) Clever strategy firms with market power frequently use to extract consumer surplus is bundling. This involves selling two or more goods together. A good ex to think about concerns season tickets to symphony. Assume, for sake of argument, that symphony plays three concerts in season, one which is all Beethoven, one all Handel, and one modern music concert, featuring the work of Penderecki.Imagine that there are a number of consumers who might buy tickets to these concerts. In particular, imagine that there are two seats which can be sold, and four consumers who might buy them.

Consumer 1 would pay $15 to hear Beethoven, $8 to hear Handel, and $0 to hear modern music concert.
Consumer 2 would pay $8 to hear Beethoven, $3 to hear Handel, and $6 to hear modern music concert.
Consumer 3 would pay $5 to hear Beethoven, $9 to hear Handel, and $12 to hear modern music concert.
Consumer 4 would pay $3 to hear Beethoven, $3 to hear Handel, and $3 to hear modern music concert.

a. If we charge different price for each individual concert, how much would we charge for Beethoven? Handel? Modern music concert?What would be our profit in this case?

b. If instead, we sold a season ticket to all three concerts, what would be (profit maximizing) price?What would be the profit in that case?

c. Can you think of even more profitable bundling strategy?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M923152

Have any Question? 


Related Questions in Microeconomics

Discuss the security issues in addition to simple customs

Discuss the security issues (in addition to simple customs requirements) that your company must consider when transporting customers' goods across international borders. Do the markets your company usually serves make th ...

1what is the connection between economic and environmental

1. What is the connection between economic and environmental shocks (e.g. global events, wars, commodity price fluctuations) and changes in money and banking strategy? Highlight specific examples. THESE ARE THE INSTRUCTI ...

These questions are about the usa industrialization and

These questions are about the USA Industrialization and Economic Development. At least 200 words for each question! 1. What is meant by the term "development" inneo-classic economics? How might your answer to this questi ...

Microeconomicsassignment capitalism and the us economyin a

Microeconomics Assignment: Capitalism and the U.S. Economy In a command or planned economy, the government, not the market, regulates the factors of production and economic activities considered essential to the function ...

Brainy brian eco discussiondiscussion topic is the lost

Brainy Brian ECO discussion Discussion topic is The Lost Decade: Needs to be 150-250 words and one or two citations. No cover page is needed Aggregate expenditure is the total amount of spending in the economy that deter ...

Assignmentdoes your organization have a project portfolio

Assignment Does your organization have a project portfolio management process in place? Write 1100 words in APA format in response Think of a project that you have worked on. Suppose your team and any contractors associa ...

Question 1nbspgiven the following chart answer the

Question 1  Given the following chart answer the questions below, assuming that all resources and technology are fixed for this farm. Corn(bu) Soybeans(bu) 20,000 0 16,000 5000 12,000 9000 8,000 12,000 4,000 14,000 0 15, ...

Assignment global business today - the hofstede studyrefer

Assignment: Global Business Today - The Hofstede Study Refer to Hofstede model in Chapter 4 of the textbook and the Global Business Today Interaction located below, and complete this assignment. Note: You must have a Fla ...

Hospitality economic reportformat individual report limited

Hospitality Economic Report Format: individual report, limited to 1500 words - use them wisely! The task is to produce a concise yet critical report, provide recommendations and recognise limitations of what you are reco ...

Discussion questions1 firms made a come back by trimming

Discussion Questions 1) Firms made a come back by trimming costs, reducing unused capacity and increasing profits. List at least two issues in which they focus on. 2) What are the effects of nonperforming loans on a bank ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate