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jonny [76]
2 years ago
9

Ricky and Anita are 10 year-olds who have a lemonade stand on a busy beach and would like to practice price discrimination. They

know that they are the only sellers of lemonade on the beach and that adults have a less elastic demand for lemonade than kids so they decide to sell their lemonade for $0.25 to kids and $0.50 to adults. Will their price discrimination be successful? Why or why not?
Business
1 answer:
Alex Ar [27]2 years ago
3 0

Answer:

Yes, the price discrimination will be successful.

Explanation:

According to the definition of elasticity of demand we can conclude that adults value more the consumption of lemonade, for that reason are willing to pay a higher price than kids, which has a larger portfolio of beverage to choose.

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Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
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Answer:

3. one case of 24 sodas @ $ 18.50

Explanation:

The question requires that the hosts need to have enough to have two sodas each. The number of guests being 10, the requirement is to have 20 sodas.

Now comparing the various pack sizes available:

1. 20 sodas $ 1.50 per bottle, Total cost $ 30, per serving cost $1.50

2. 4 6 packs @ $ 5 each. Total cost $20, Per serving cost $0.83

3. 24 soda case @ $18.5. Total cost $ 18.50, Per Serving costs $ 0.77

4, 2 x 24 soda cases @ 18.50. Total Cost $ 37.00 Per serving costs $ 0.77

The per serving costs are the same in 3 & 4 above, however, since the requirement is to have 20 sodas and the overall costs as well as the per serving costs is the best in option 3, this is the preferred option.

8 0
2 years ago
If a certain market were a monopoly, then the monopolist would maximize its profit by producing 4,000 units of output. If, inste
nevsk [136]

Answer:

A

Explanation:

A monopoly is when there are two firms operating in an industry.

A duopoly is when there are two firms operating in an industry. When the two firms collude, they become a monopoly.

If a monopoly maximises profit by producing 4000 units, the colluding duopolist would also maximise profit by producing 4000 units

3 0
2 years ago
The decentralized commercial and office districts that have emerged on the fringes of metropolitan areas near such features as f
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Answer:

Edge Cities

Explanation:

  • Edge City is a small city generate in the U.s for a concentration of industry, shopping, and enjoyment on the outside of a conventional city center or city center in what was previously a social housing or rural suburb.
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  • Ridge communities designed for interchanges with freeways have a history of serious traffic problems if any of these highways remains unbuilt.
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Therefore the product warranty expense will be (10% * ($50 * 650 CDs)) = $3,250.

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Dewayne is comparing two checking accounts, one has a monthly fee of $7 and a per-check fee of $0.30, and the other has a monthl
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