Question

There are many companies that make turbans, but ManMan Headgear is famous for their distinctive blue...

There are many companies that make turbans, but ManMan Headgear is famous for their distinctive blue turbans.

The demand for ManMan turbans is given by P = 100 – 2Q

The cost of producing turbans is given by C = 4Q

4)ManMan Headgear decides that they will try some 2nd Degree Price Discrimination.

ManMan will not take any future orders until they have sold a quantity of 10.

What price will they charge for those 10 turbans?

5) After they have sold their first 10 turbans, ManMan will take orders for another 10 turbans. So this is a total of 20 units sold, but the first 10 were sold at the price you found in 6.1.

What price will they charge for these next 10 units?

6) What is ManMan's profit under this 2nd degree price discrimination?

7) What Quantity will ManMan sell in this block?

How much does it cost ManMan to produce that quantity (total cost)?

What Price will ManMan charge for the entire block?

Please show work

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In the question numbered 5.. there is no clarity on "the price you found in 6.1..

Hence question num. 4 is answered. The price charged for 10 turbans is $40.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A single firm produces widgets, with a cost function and inverse demand function as follows, C(q)...
A single firm produces widgets, with a cost function and inverse demand function as follows, C(q) = 150 + 2q P(Qd) = 10 ? 0.08Qd (a) Calculate the monopolist’s profit-maximizing price, quantity, and profit if he can charge a single price in the market (single price monopolist). (b) Suppose the firm can sell units after your answer to (a) at a lower price (2nd-degree price discrimination, timed-release). What quantity will be sold for what price in this second-tier market? Calculate...
A. First Degree Price discrimination: Honest Sanjay’s Use of First-Degree Price Discrimination Lecture #3 and Lecture...
A. First Degree Price discrimination: Honest Sanjay’s Use of First-Degree Price Discrimination Lecture #3 and Lecture PPT #2 contains information about Sanjay's Used Car. Given FC = 5 and MC = 2 without price discrimination and MC =3 with price discrimination to hire a better salesman who can find the customers’ reservation prices 1. Suppose that Sanjay moves his business to a larger city where demand is P = 20 - Q. Marginal cost conditions are the same. What price...
1. Suppose that a monopolist engages in first-degree price discrimination. Which of the following statements is...
1. Suppose that a monopolist engages in first-degree price discrimination. Which of the following statements is true? a. Consumers receives all the economic surplus. b. The economic surplus is equally distributed between the consumers and the monopolist. c. The monopolist receives all the economic surplus. d. Total surplus is not maximised ( there is a deadweight loss) e. None of these. 2. A monopolist has no fixed costs and a constant marginal cost equal to $4 per unit. Suppose that...
Suppose there are 2 types of customers. Type A have the following demand P=200-2Q and type...
Suppose there are 2 types of customers. Type A have the following demand P=200-2Q and type B have the following demand P=240 -8Q. The total cost is MC=80. The market is monopolized and the producer is considering a pricing strategy involving 3rd degree price discrimination. What prices should the monopoly charge each type of consumer and what should be the optimal output to be sold to each type of consumer?
Consider 2 tour companies, Blue Dolphin and Aloha Adventures, that are the sole providers of scuba...
Consider 2 tour companies, Blue Dolphin and Aloha Adventures, that are the sole providers of scuba diving trips off of the Hawaiian island of Ni’ihau. They are competing as Cournot duopolists. The market demand function for the market for scuba diving trips to the island is given by: ? = ??? − ?? where ? is the sum of the quantity of trips provided by the two tour companies. The cost function for Blue Dolphin is given by ?(???) =...
A monopolist faces a demand curve P= 24 – 2Q, where P is measured in dollars...
A monopolist faces a demand curve P= 24 – 2Q, where P is measured in dollars per unit and Q in thousands of units and MR=24 – 4Q. The monopolist has a constant average cost of $4 per unit and Marginal cost of $4 per unit. a. Draw the average and marginal revenue curves and the average and marginal cost curves on a graph. b. What are the monopolist’s profits-maximizing price and quantity? c. What is the resulting profit? Calculate...
(3rd Degree Price Discrimination) Consider a monopolist serving two identifiably distinct markets with no resale possible,...
(3rd Degree Price Discrimination) Consider a monopolist serving two identifiably distinct markets with no resale possible, so that the monopolist may practice third-degree price dis- crimination. Demand in market 1 is given by D1(p1) = 800 − 8p1 and demand in market 2 is given by D2(p2) = 1200 − 12p2. Marginal cost is constant, M C = 10, and there is no fixed cost. A) Find the marginal revenue curve in each market, M R1(q1) and M R2(q2). B)...
Bell Computers purchases integrated chips at ​$350350 per chip. The holding cost is ​$3737 per unit...
Bell Computers purchases integrated chips at ​$350350 per chip. The holding cost is ​$3737 per unit per​ year, the ordering cost is ​$119119 per​ order, and sales are steady at 395395 per month. The​ company's supplier, Rich Blue Chip​ Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.                                                                         Rich Blue​ Chip's Price Structure Quantity Purchased ​ Price/Unit ​ 1-99 units ​$350 ​ 100-199 units ​$325 200 or more units...
he inverse demand function faced by a monopoly is given byP=103Q. The monopolyhas a total cost...
he inverse demand function faced by a monopoly is given byP=103Q. The monopolyhas a total cost functionTC=Q2+2Q and a marginal cost function MC=2Q+2. (a) What are the monopolist’s profit maximizing price and quantity? Show these and theassociated deadweight loss on a diagram. (b) Calculate what price and quantity would prevail if this were a perfectly competitive marketwith the marginal cost curve acting as the supply curve? Show this price on your diagramfor part (a). (c) If the government imposes a...
PFS manufactures specialized athletic performance equipment that is protected by patents. These patents give PFS a...
PFS manufactures specialized athletic performance equipment that is protected by patents. These patents give PFS a monopoly position in the marketplace. The demand curve for athletic performance equipment is given by Q = 100 − P—this implies a marginal revenue curve of MR = 100 − 2Q, where Q is the monthly sales of athletic performance equipment. The average and marginal cost curves curves for PFS are: AC = Q + (2000/Q) MC = 2Q (a) Determine the monopolist’s profit-maximizing...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT