Price discrimination exists when a firm sells ________ goods at different prices to _______

A consumer makes purchases of an existing product X such that the marginal utility is 10 and the price is $5. The consumer also

Novosadov [1.4K]

Answer:

Increase the consumption of product Y and decrease the consumption of product X.

Explanation:

Utility-maximizing rule states that a consumer is maximizing its utility at a point where the marginal utility per dollar spent equal for both the products.

Marginal utility per dollar for Product X:

$\frac{MU_X}{P_X}=\frac{10}{5}$

= 2 utils per dollar

Marginal utility per dollar for Product Y:

$\frac{MU_Y}{P_Y}=\frac{8}{1}$

= 8 utils per dollar

Here, the utility-maximizing rule suggests that this consumer should consume more of product Y and less of product X.

4 0

2 years ago

Lamar has just gotten a new job and is attending a company party where he will meet his colleagues for the first time. His boss

a_sh-v [17]

Lamar's experience demonstrates retroactive interference.

<h3><u>Explanation:</u></h3>

When a person tries to recall some information that are older in nature and comes to know about some recent information it refers to Retroactive interference. For instance you may call the name of your grandmother with the name of your mom. There will be a retroactive interference with the two names.

This happens when you forget some tasks that are learnt in past because of the learning of new tasks. In the given example, Lamar only rememnbers the names of the people in the first group and remebers the profession of the last women met by him. His experience demonstrates retroactive interference.

3 0

1 year ago

What effect does the change in the market for cripps pink apples have on the price of the apples and on the quantity supplied an

Anika [276]

Answer:

The change in the market for Cripps is positively related with other apples.

Explanation:

The Cripps pink apples are the substitute to the other apples so there is a direct relationship between the price one commodity and the demand for its substitute commodity. Therefore, if the price of Cripps pink apples rises, then the demand for other apples will rise also because of substitute goods. Similarly, if the price fall, then the demand for other apples will also fall. Thus substitute goods encompass a positive relationship.

3 0

2 years ago

Suppose that two identical firms produce widgets and that they are the only firms in the market. Their costs are given by C1 = 6

GaryK [48]

Answer:

Consider the following calculations

Explanation:

a. π1 = P Q1 − C1 = (300 − Q1 − Q2 )Q1 − 60Q1 = 300Q1 − Q1^2 − Q1 Q2 − 60Q1

π2 = P Q2 − C2 = (300 − Q1 − Q2 )Q2 − 60Q2 = 300Q2 − Q1 Q2 − Q2^2-60Q2

Take the FOCs:

∂π/(∂Q1)= 300 − 2Q1 − Q2 = 0 ⇒ Q1 = 120 − 0.5Q2

∂π/(∂Q2)= 300 − Q1 − 2Q2 = 0 ⇒ Q2 = 120 − 0.5Q1

Q1 = 120 − 0.5[120 − 0.5Q1 ] = 60 − 0.25Q1 ⇒ Q1 = 80

Similarly ﬁnd Q2 = 80 such that π1 = π2 = 6, 400.

b. The two ﬁrms act as a monopolist, where each ﬁrm produces an equal share of total output. Demand is given by P = 300 − Q, M R = 300 − 2Q, and M C = 60. Set M C = M R toﬁnd that Q = 120 and Q1 = Q2 = 60, respectively. Therefore:

π1 = π2 = 180 × 60 − 60 × 60 = 7, 200.

c. It would be higher because they could make more money.

d. Firm 2 knows that Q1 = 60 and given the reaction function derived in part (a) ﬁrm 2 sets Q2 = 120 − 0.5 × 60 = 90. Overall, QT = 150 and P = 300 − 150 = 150. Hence:

π1 = 150 × 60 − 60 × 60 = 5, 400

π2 = 150 × 90 − 60 × 90 = 8, 100.

8 0

2 years ago

When gathering marketing intelligence, companies often use the U.S. census, which provides an in-depth look at the population sw

Tanzania [10]

Answer:

"B"

Explanation:

Market intelligence are sets of tool that can provide information about customers , competitors and other market related factors in order to increase market shares , reduce cost and improve profit

A lot of information are required and can be time consuming and costly .

To this effect an organization always look out for the best possible ways of achieving this in a cost effective way.

We have experts who are specialists in this and an organization can also make use of available data that are related to their marketing objectives.

7 0

2 years ago

Price discrimination exists when a firm sells ________ goods at different prices to ________ groups of customers

Price discrimination exists when a firm sells goods at different prices to groups of customers