Question

# answer timely for thumbs up 56 ​ A recent medical study reports new benefits of cycling....

56

​ A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls.  The demand curve would _________ and the supply curve would__________

 a. ​Shift to the right, shift to the left b. ​shift to the right, shift to the right c. ​shift to the left, shift to the left d. ​shift to the left, shift to the right

Question 65

For direct price discrimination to work

 a. ​The firm need not be able to identify the members of the low-value group b. ​The firm be able to charge the low-value customers a lower price than the higher-value customers c. ​The firm need not worry about any arbitrage since all its customers are charged the same price d. ​It needs to be too complicated for the customers to understand

Question 68

A business incurs the following costs per unit: Labor  \$125/unit; Materials \$45/unit and rent  \$250,000/month. If the firm produces 1,000,000 units a month, the total variable costs equal

 a. ​\$45Million b. ​\$1Million c. ​\$170Million d. ​\$125Million

The answer is: D). Shift to the left, shift to the right

The shift of the demand curve to the right indicates an increase in demand at whatever price because a factor, such as a consumer trend or taste, has risen for it. Conversely, a shift to the left displays a decrease in demand at whatever price because another factor, such as the number of buyers, has slumped.

The answer is: B). The firm be able to charge the low-value customers a lower price than the higher-value customers.

Direct price discrimination occurs when a firm split up consumers into identifiable groups. For example, rail discounts for OAPs. Indirect price discrimination occurs when a firm offers a menu of different choices and allows the consumer what to buy.

Vc = Labour cost + Raw material cost

Vc = \$125 + \$45

Vc = \$170 per units

#### Earn Coins

Coins can be redeemed for fabulous gifts.