Suppose that individual demand for a product is given by, Ask an Expert

Economics

Suppose that individual demand for a product is given by Q_D=1000-5P. Marginal revenue is MR=200-0.4Q, and marginal cost is constant at $20.

There are no fixed costs.

a. The firm is considering a quantity discount. The first 400 units can be purchased at a price of $120, and further units can be purchased at a price of $80. How many units will the consumer buy in total?

b. Show that this second-degree price-discrimination scheme is more profitable than a single monopoly price.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91949934

Have any Question?Write your Review or question?

Related Questions in Business Economics

Liquidity ratios burts tvs has current liabilities of 258

Liquidity Ratios Burt's TVs has current liabilities of $25.8 million. Cash makes up 48 percent of the current assets and accounts receivable makes up another 28 percent of current assets. Burt's current ratio = .93 times ...

A sample of 100 randomly selected students found that the

A sample of 100 randomly selected students found that the proportion of students planning to travel home for Thanksgiving is 0.68. What is the Standard Deviation of the sampling distribution?

There are certain coins that can sometimes have the weight

There are certain coins that can sometimes have the weight that are Normally distributed with a mean of 5.207 g and a standard deviation of 0.053 g. Now, a vending machine is configured to accept those coins with weights ...

1 which of the following statements is not true about

1. Which of the following statements is not true about an excise tax? A- A unit tax is an excise tax. B- An excise tax is levied on the purchases of particular good or service. C-An excise tax is based on an individual's ...

1 you are lost on the mythy island in the summer when

1. You are lost on the Mythy Island in the summer, when tourists are two-thirds of the population. If you ask a tourist for direction the answer is correct with probability ¾; answers to repeated questions are independen ...

Some farm land is more productive than other land in the

Some farm land is more productive than other land in the sense that it can grow more food per hectare. Farmers also use fertilizer to grow food (i.e. adding fertilizer increases crop yield by 10 percent) earn more revenu ...

What is asymmetric information and how does it affect the

What is asymmetric information and how does it affect the consumer or buyer?

Do you think that the taxicab industry in large cities

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

What is the average depth of the human vaginal

What is the average depth of the human vaginal cavity?

What are the characteristics of perfect competition and

What are the characteristics of perfect competition, and does is exist in the real world?

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