Perfect price discrimination is when a firm can charge each customer exactly what they are willing to

Question:

Perfect price discrimination is when a firm can charge each customer exactly what they are willing to pay. In this case,

a. The demand curve is very inelastic.

b. The marginal revenue is the demand curve.

c. The demand curve is very elastic.

d. The marginal cost curve is the average cost curve.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

See More Books

Question Posted: Jul 08, 2020 02:39 AM

See More Questions

"Perfect price discrimination" occurs when each consumer is charged his or her maximum price for the product. When this happens, the monopolist is able to capture the entire consumer surplus. Draw a...
What is perfect price discrimination? Is it likely to ever occur? Is perfect price discrimination economically efficient? Briefly explain.
Suppose a monopolist is able to engage in perfect first-degree price discrimination in a market. It can sell the first unit at a price of 10 Euros, the second at a price of 9 Euros, the third at a...
In 2017, Barlow moved from Chicago to Miami to start a new job, incurring costs of $1,200 to move household goods and $2,500 in temporary living expenses. Barlow was not reimbursed for any of these...
Give brief statements about the relevance of the following complexes in living systems: (a) Hemoglobin, (b) Chlorophylls, (c) Siderophores.
Total costs and unit costs. A student association has hired a musical group for a graduation party. The cost will be a fixed amount of $4,800. Required 1. Suppose 500 people attend the party. What...
What is the definition of waste as it is used in this text? LO,1
In Chapter 7, you developed a use case diagram, an activity diagram, and a system sequence diagram for the use cases Rent movies and Return movies. In Chapter 11 you developed a first-cut DCD and...
Required information [The following information applies to the questions displayed below.] On December 1, Year 1, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The...
You are the cost accountant at Poseys Pet Emporium tasked with preparing quarterly budgets that determine the cash effects of the companys sales and production-related expenditures. The company uses...
Collect a set of price quotes for no fewer than 30 airplane tickets. Examine how these price quotes change as you vary the ticketsone characteristic at a time. For instance, suppose you get a price...
The pricing model for iTunes has been to price songs individually. Instead, Spotify opted to offer unlimited song playing for a monthly fee. Would Spotifys pricing model likely yield more profit than...
In the spin-dry cycle of a modern washing machine, a wet towel with a mass of 1.50 kg is stuck to the inside surface of the perforated (to allow the water out) washing cylinder. To have decent...
Share your thoughts on the descriptions of coaching versus mentoring. Discuss which technique you personally find more helpful, incorporating your peers' example scenarios if possible. Provide...
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $380,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of...
Discuss difference between nominal interest rate and real interest rate. Explain why real interest rate is more important than the nominal interest rate using your answer to Question 1 of the...
Refer to Figure 14-1. How would an increase in the money supply move the economy in the short and long run?
1) Special Relativity. Statement: Imagine this situation: Alice stands in New York City while Bob, aboard a plane departing from Boston, directly crosses over Alice at t=0. Disregard the vertical...
The spring of modulus k = 200 N/m is compressed a distance of 300 mm and suddenly released with the system at rest. Determine the absolute velocities of both masses when the spring is unstretched....
The packaging division of a company having considered several alternative package designs for the company's new product has finally brought down their choices to two designs of which only one has to...
Congress enacted the Health Insurance Portability and Accountability Act (HIPAA) to potentially help millions of employees gain access to group health insurance. The key provision of HIPAA requires...
Since the late 1990s, more than 25 domestic steel companies have filed for bankruptcy. A combination of low prices with strong competition by foreign competitors and so-called legacy costs of unions...
This past year, Used Imported Autos sold very few cars and lost over $500,000. As a consequence, its manager is contemplating two strategies to increase its sales volume. The low-cost strategy...
Series of Compound Interest Techniques The following are several situations involving compound interest. Required: Using the appropriate table, solve each of the following: ( Click here to access the...
If Clark Kelly has recognized gain on an exchange of like-kind property held for investment use, where does Clark report the gain? First on Form 8824, then carried to Schedule D. First on Form 8824,...
An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B has a beta of 1.6. If the risk-free rate is 5% and the expected return on the market is 12%,...

Perfect price discrimination is when a firm can charge each customer exactly what they are willing to

Question:

Step by Step Answer:

b The marginal revenue is the de...View the full answer

Managerial Economics

Students also viewed these Business questions