Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Question: Your personal demand curve for a good sold by a monopolist is depicted in the following table:

1055_2.png

a. The salesperson first quotes you a price of $6, and you respond by buying 5 units. Just as you are about to leave he offers you a sixth unit for $5. Why do you accept this offer? Again, you are about to leave and he offers you a seventh unit for $4. You also take this offer, right? Why?

b. Next week you return to the monopolist and see a sign: "New pricing policy: pay a $21 admission charge and then you can buy all you want for $4 per unit." Why are you willing to pay the admission charge rather than walk away? After you pay, you buy 7 units. Why are you willing to pay $21 + $28 = $49 for 7 units this week, when last week you paid only $39 for them?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92494200
  • Price:- $15

Priced at Now at $15, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question my question would impact of demonitization on

Question: My question would impact of demonitization on rural and agrarian economy, it is said that digitization would rise, however to it implementation would be at faster pace in urban and its fringes. How would rural ...

Question you are a manager for a firm in an industry where

Question: You are a manager for a firm in an industry where prices have been flat for the past several years. The rate of inflation now rises from 2% to 4%, but the FOMC does not immediately boost the funds rate. Is this ...

Questions1 use graphs to explain the following concepts11

Questions 1 Use graphs to explain the following concepts: 1.1 Ben allocates his lunch budget between two goods, pizza and burritos. Illustrate Ben's optimal bundle on a graph with pizza on the horizontal axis. Suppose no ...

Question analyze the various factors contributing to

Question: Analyze the various factors contributing to poverty and determine which single factor plays the most significant role. Provide a specific example to support your response. Discuss how developed nations contribu ...

Question a firm in a perfectly competitive market invents a

Question: A firm in a perfectly competitive market invents a new method of production that lowers its marginal costs. What happens to its output? What happens to the price it charges? a. The firm has an employee who thre ...

A market with q 16p-2 is supplied by a monopoly with cost

A market with Q = 16*p^-2 is supplied by a monopoly with cost C(Q) = 6 + Q^2/8. Calculate the equilibrium price, output and monopoly profits. What should be the equilibrium if the market were supplied competitively by fi ...

Question suppose that an unexpectedly rapid growth in real

Question: Suppose that an unexpectedly rapid growth in real income abroad leads to a sharp increase in demand for U.S. exports. What impact will this change have on the price level, output, and employment in the short ru ...

Question what is profit management how is it different from

Question: What is profit management? How is it different from cost or loss management? How does Mises' system of dividing components of business help direct profits to efficient units? How does this relate to decision ri ...

Question given recent trends what are the near-term

Question: Given recent trends, what are the near-term prospects for the U.S. economy, and how simulative or restrictive do you expect economic policy (both monetary and fiscal) to be over (say) the next 12 months, and ho ...

Question suppose that the united states and canada each

Question: Suppose that the United States and Canada each produce only two products, televisions and food. The United States can produce 100 televisions a day, 150 pounds of food a day, or any combination in between. (For ...

  • 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