QUESTION 37 Y The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.40 and is 2.60 in the spring. If Luxury Resorts faces a constant marginal cost of $600 per home rental, what is the profit-maximizing peak-load price to charge in the summer? 0 $975 O $2,750 0 $1,250 O $2,100 QUESTION 39 The demand for Healthy Bars, a health snack bar, is Qd = 10 (2 x P) and Healthy Bars has a constant average cost of $3 per snack bar. If Healthy Bars wants to package their bars to create an all-or-nothing offer and puts the profit- maximizing number of bars into each package, what is the protmaximizing price to charge for the package? 0 $8 0 $20 0 $12 0 $16 2 points Save Answer QUESTION 40 If a firm is practicing third-degree price discrimination and is charging a price of $8 per unit to consumers in Group A and a price of $10 to consumers in Group B, which of the following is true? 00 00 Group A consumers have a greater price elasticity than Group B consumers. Group A consumers are less responsive to price changes than Group B consumers. Group B consumers have a greater price elasticity than Group A consumers. Group A consumers have a lower price elasticity than Group B consumers. 2 points Save