Firm campd is a monopolist both in the us market and in the, Ask an Expert

Economics

Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2.

(a) Suppose the firm is restricted to set a single price for both markets (i.e., no price discrimination). What price does the firm set? How much profit does the firm collect?

(b) Suppose the firm is able to set a different price for each market (i.e., third-degree price discrimi- nation). What prices does the firm set? How much profit does the firm collect?

(d) Compare the prices in each market with price discrimination taking into consideration the differences between the price elasticity of demand in each market at these prices. Do you think there is a relation between the price and the price elasticity of demand in each market? Why?

(e) Discuss the overall effects of price discrimination (relative no discrimination) on profit, consumer surplus, and total welfare.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91420795

Have any Question?Write your Review or question?

Related Questions in Business Economics

A survey of car rentals agencies shows that the average

A survey of car rentals agencies shows that the average cost of a car rental is 0,35 per mile. The standard deviation is .05. Using Chebyshevs theorem, find the price range for which at least 93.75 % of the data values w ...

A random sample ofnbsp77nbspeighth gradenbspstudents scores

A random sample of 77 eighth grade? students' scores on a national mathematics assessment test has a mean score of 285. This test result prompts a state school administrator to declare that the mean score for the? state' ...

How would the stock market soars and americans wealth

How would the stock market soars and Americans wealth expands significantly affect the econmony, by analyzing in the SRAS-AD diagram and determine the effects on real GDP and the General price level

With most of the worlds nations either having moved to

With most of the world's nations either having moved to market economies, does the nationalization of foreign industries and property have its place?

Assume that your business firm is a price taker and that

Assume that your business firm is a price taker and that the company sells widgets at $10 apiece. Your firm is maximizing profits. One of your engineers discovers the presence of a substitute input that enables you to cu ...

A 1000 utility bond with 14 years remaining before maturity

A $1000 utility bond with 14 years remaining before maturity can now be purchased for $760. It pays interest of $20 each 6-month period. What rate of return is earned by purchasing the bond at the current market price pl ...

If the marginal propensity to consume is equal to 030 what

If the marginal propensity to consume is equal to 0.30, what will be to total change in output (or income) that will result from an increase in government expenditure of 127.4?

In a random sample ofnbsp50nbsprefrigerators the mean

In a random sample of 50 ?refrigerators, the mean repair cost was ?$146.00 and the population standard deviation is ?$17.80. Construct a 90?% confidence interval for the population mean repair cost. Interpret the results ...

One of the authors received a credit card bill for 3167 and

One of the authors received a credit card bill for 3167 and it included a charge of 1622 that was not valid. Find the values of the absolute amd relative errors.

Elasticity questionplease show work very elementary im

Elasticity question Please show work very elementary I'm having a hard time understanding. Find e=dq/dp*p/q at profit maximizing given the following: Qd = 12 - 4p TC = 8-12q + 3q^2

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

Recent Questions

Ask Business Economics Expert