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Hey could i ask for the solutions in order to verify my answers, thank you :) QUESTION 1 Cameron sells premium steaks at the local
Hey could i ask for the solutions in order to verify my answers, thank you :)
QUESTION 1 Cameron sells premium steaks at the local market. He has a lot of customers due to the promising taste and texture of his steaks. 1 kilogram of his premium steak costs $80.50. However, it would only cost $68.50/kilogram if a customer buys 3 kilograms of his premium steaks and $58.50/kilogram if a customer buys 5 kilograms instead. Cameron can supply 100 kilograms of premium steaks in a day, but his supply only lasts for an hour and a half. Which of the following statements is true? With this pricing scheme, Cameron is extracting all the consumer surplus. Cameron is basing his pricing scheme on the maximum amount his customer is willing to pay for his premium steak. Cameron is using Third degree price discrimination by charging different prices for different "blocks" of kilograms for his premium steaks. Cameron receives a larger revenue and profts with this pricing scheme compared to charging a single lower price for larger quantities. None of the above are true. QUESTION 2 Anna runs her own day hiking adventures. The latest exploration of a newly reconditioned mountain trail will be embarked upon next week. Based on the previous year's ticket sales, it is guaranteed to be a sell-out expedition. Anna decides to do two trips to accommodate the extra demand in the first week. However, she will have to pay a higher than usual rate for casual guides to work overtime in the first week, so she decides to charge twice the normal ticket price. Which of the following statements are true: Anna's decision to price discriminate could help lead to higher profits if she can adequately cover her costs. Anna is third degree price discriminating if she is charging more for the first two trips on the basis of customers being keen advocates of the mountain trail. Anna would be peak load pricing for the first week if she raises the price due to having higher marginal costs to run the hiking trips. Anna's decision to price discriminate will lead to a lower producer surplus.QUESTION 3 MeTube Green is a movie streaming service provided by MeTube that aims to compete with Hele. MeTube Green charges $12.99 per month for a single user subscription, or $19.99 for a family package that can be used by up to 6 people. Select the item from the list provided to make the following statements true. MeTube Green is employing in offering a family package. 1. first degree price discrimination 2. second degree price discrimination v If raising its prices will never lead to greater profits for MeTube Green , this would indicate that 3. third degree price discrimination it has been forced to adopted a strategy 4. peak load pricing If Jimbo purchases a family package, then sells access to one of the user accounts in MeTube 5. pricing power Green to Jacqueline, he is engaging in 6. arbitrage 7. inefficient 8. collusion 9. dominant 10. dominated 11. prisoner's dilemma 12. efficientQUESTION 4 Two countries are considering whether to impose tariffs on each other's imports as part of a "trade war." The increase in each country's GDP (measured in billions of dollars) for different combinations of tariffs are shown in the table. Which strategy will: a. Country 1 select? Type N for No Tariff, L for Low Tariff or H for High Tariff as your answer. b. Country 2 select? Type N for No Tariff, L for Low Tariff or H for High Tariff as your answer. Country 2 No Tariff (N) Low Tariff (L) High Tariff (H) No Tariff (N) 75, 75 20, 100 15, 140 Country Low Tariff (L) 100, 20 50, 50 20, 100 1 High Tariff (H) 140, 15 100, 20 25, 25Step by Step Solution
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