Question

Andy Anderson is the only supplier of email updates on avalanche conditions in the mountains above...

Andy Anderson is the only supplier of email updates on avalanche conditions in the mountains above the two towns of Vanee and Keno. The marginal cost of producing these updates is zero (with zero fixed costs) and the inverse demand for these updates in Vanee is p = 52 - q and p = 11 - q in Keno. Suppose that in each of the two towns, all of the demand comes from one customer. Andy cannot identify which customer is which. To get around this, he creates two kinds of packages, one containing 52 updates and one containing 11. He allows his customers to simply buy one and only one of the kind of package that they prefer. What is the maximum price Andy could charge for the large package if he wants the Vanee customer to buy the package of 52 and the Keno customer to buy the package of 11?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Andy Anderson is the only supplier of email updates on avalanche conditions in the mountains above...
Andy Anderson is the only supplier of email updates on avalanche conditions in the mountains above the two towns of Vanee and Keno. The marginal cost of producing these updates is zero (with zero fixed costs) and the inverse demand for these updates in Vanee is p=40-q and p=13-q in Keno. Suppose that in each of the two towns, all of the demand comes from one customer. Andy cannot identify which customer is which. To get around this, he creates...
Mr. Oak is the only supplier of email updates on avalanche conditions in the mountains above...
Mr. Oak is the only supplier of email updates on avalanche conditions in the mountains above the two towns of Kanto and Hoenn. The marginal cost of producing these updates is zero (with zero fixed costs) and the inverse demand for these updates in Kanto is P= 46 - Q and P = 11 - Q in Hoenn. Suppose that in each of the two towns, all of the demand comes from one customer. Mr. Oak cannot identify which customer...
Stewie is the only supplier of Cold Hwhip in Quahog, giving him a monopoly. His only...
Stewie is the only supplier of Cold Hwhip in Quahog, giving him a monopoly. His only customer, Meg,has inverse demand given by p= 8−q and Stewie as a marginal cost of 4 for each tub of Cold Hwhip. Brian’sinverse demand is p= 20−q suppose that Stewie is out of town and can’t monitor which customer is buying his product. Instead he creates two kinds of packages, one containing 4 tubs of Cold Hwhip and one containing 16 tubs of Cold...
Stewie is the only supplier of Cold Hwhip in Quahog, giving him a monopoly. His only...
Stewie is the only supplier of Cold Hwhip in Quahog, giving him a monopoly. His only customer, Meg, has inverse demand given by p = 8 − q and Stewie as a marginal cost of 4 for each tub of Cold Hwhip. (a) Find the profit-maximizing uniform price and quantity, as well as Stewie’s profits (b) Now suppose Brian gets wind of Stewie’s Cold Hwhip and wants to buy some as well. Brian’s inverse demand is p = 20 −...
Seth owns a local business that provides email updates on surf conditions. He is the only...
Seth owns a local business that provides email updates on surf conditions. He is the only supplier of these email updates in Santa Barbara and Goleta, which gives him a monopoly in both cities. The marginal cost of producing another update is zero (and we'll ignore fixed costs). The inverse demand for these updates in Santa Barbara is p = 67 - q and the inverse demand in Goleta is p = 31 - 4q. Suppose Seth charges different uniform...
Wu owns a local business that provides email updates on surf conditions. She is the only...
Wu owns a local business that provides email updates on surf conditions. She is the only supplier of these email updates in Misty Palms and Gaoling, which gives her a monopoly in both cities. The marginal cost of producing another update is zero (and we'll ignore fixed costs). The inverse demand for these updates in Misty Palms is P = 79 - Q and the inverse demand in Gaoling is P = 42 - 4Q . Suppose Wu charges different...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The...
For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The chief executive of Alibaba Group Holdings Ltd. was working on a secret plan that would sound crazy even to many of his own colleagues 100 miles away in Hangzhou. Zhang wanted to launch a startup inside the e-commerce giant that would combine a grocery store, a restaurant, and a delivery app, using robotics and facial recognition to speed up logistics and payment. That project,...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT