If a firm supplies separable markets with price elasticities $\eta$1 and $\eta$2,it should set prices P1 and P2 so that:

A) P1$\eta$1 = P2$\eta$2. B) P1 /$\eta$1 = P2 /$\eta$2. C) P1(1 + 1/$\eta$1) = P2 (1 + 1/$\eta$2). D) P1/(1 - 1 /$\eta$1) = P2 / (1 - 1/$\eta$2). E) P1 = 1 - 1/$\eta$1 and P2 = 1 - 1/$\eta$2. A) P1$\eta$1 = P2$\eta$2. B) P1 /$\eta$1 = P2 /$\eta$2. C) P1(1 + 1/$\eta$1) = P2 (1 + 1/$\eta$2). D) P1/(1 - 1 /$\eta$1) = P2 / (1 - 1/$\eta$2). E) P1 = 1 - 1/$\eta$1 and P2 = 1 - 1/$\eta$2.

Exam 9: Managerial Use of Price Discrimination

The per-week demand for use of the Golden Gate Bridge in San Francisco is P = 13 - 0.15Q during peak traffic periods and P = 7 - 0.1Q during off-peak hours,where Q is the number of cars crossing the bridge in thousands and P is the toll in dollars.If the marginal congestion cost of using the bridge is MC = 5 + 0.2Q,what is the optimal off-peak load toll for crossing the bridge?

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(Multiple Choice)

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Question 1

Correct Answer:

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The optimal level of output and price for the profit-maximizing monopolist in the following figure would be:

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

The demand for health club services is Q = 350 - 2P and the marginal cost of providing these services is MC = 110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

The per-week demand for use of the Golden Gate Bridge in San Francisco is P = 13 - 0.15Q during peak traffic periods and P = 10 - 0.1Q during off-peak hours,where Q is the number of cars crossing the bridge in thousands and P is the toll in dollars.If the marginal congestion cost of using the bridge is MC = 5 + 0.2Q,what is the optimal peak load toll for crossing the bridge?

(Multiple Choice)

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Question 4

When a utility charges homeowners less than big industrial users,it is practicing:

(Multiple Choice)

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Question 5

A firm with production located in a poor Georgia town sells toys locally for $10 each and ships the same toys to sell in a wealthy North Carolina town for $15 each.They are not price discriminating if:

(Multiple Choice)

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Question 6

Gliberace's Fashion Accessories of Las Vegas produces gemstone-encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 5(Q_LA + Q_SF).Demand for Gliberace's stones in the two cities is given by Q_LA = 70 - 2P_LA and Q_SF = 55 - P_SF.If Gliberace price discriminates between the two cities,how many stones will it sell in Los Angeles?

(Multiple Choice)

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Question 7

The per-week demand for use of the Golden Gate Bridge in San Francisco is P = 12 - 0.15Q during peak traffic periods and P = 9 - 0.1Q during off-peak hours,where Q is the number of cars crossing the bridge in thousands and P is the toll in dollars.If the marginal congestion cost of using the bridge is MC = 5 + 0.2Q,what is the optimal peak load toll for crossing the bridge?

(Multiple Choice)

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Question 8

The per-week demand for use of the Golden Gate Bridge in San Francisco is P = 12 - 0.15Q during peak traffic periods and P = 9 - 0.1Q during off-peak hours,where Q is the number of cars crossing the bridge in thousands and P is the toll in dollars.If the marginal congestion cost of using the bridge is MC = 5 + 0.2Q,what is the optimal off-peak load toll for crossing the bridge?

(Multiple Choice)

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Question 9

If the monopolist shown in the following figure could implement a two-part tariff,the entry fee would be:

(Multiple Choice)

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Question 10

When Exxoff Oil Corporation offers discounts based on credit card records of gas quantities purchased,they are practicing:

(Multiple Choice)

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Question 11

Gliberace's Fashion Accessories of Las Vegas produces gemstone-encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 5(Q_LA + Q_SF).Demand for Gliberace's stones in the two cities is given by Q_LA = 70 - 2P_LA and Q_SF = 55 - P_SF.If Gliberace price discriminates between the two cities,what will its maximum profits be?

(Multiple Choice)

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Question 12

The demand for health club services is Q = 100 - 2P,and the marginal cost of providing these services is MC = -110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?

(Multiple Choice)

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Question 13

Price discrimination is defined as:

(Multiple Choice)

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Question 14

Gliberace's Fashion Accessories of Las Vegas produces gemstone-encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 6(Q_LA + Q_SF).Demand for Gliberace's stones in the two cities is given by Q_LA = 70 - 2P_LA and Q_SF = 50 - P_SF.If Gliberace cannot price discriminate between the two cities,and so charges the same price in each,how many stones will it sell in Los Angeles?

(Multiple Choice)

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Question 15

Women are often charged more than men for haircuts performed by the same haircutter.This is not considered price discrimination because:

(Multiple Choice)

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Question 16

If a firm supplies separable markets with price elasticities $\eta$ ₁ and $\eta$ ₂,it should set prices P₁ and P₂ so that:

(Multiple Choice)

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Question 17

When Pan United Airlines gives a $400 fare discount to persons with student IDs,they are practicing:

(Multiple Choice)

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Question 18

Cereal manufacturers' use of coupons can be partially explained by:

(Multiple Choice)

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Question 19

If the monopolist shown in the following figure could practice first-degree price discrimination,the producer surplus would be:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 27

The optimal level of output and price for the profit-maximizing monopolist in the following figure would be:

The demand for health club services is Q = 350 - 2P and the marginal cost of providing these services is MC = 110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?

When a utility charges homeowners less than big industrial users,it is practicing:

A firm with production located in a poor Georgia town sells toys locally for $10 each and ships the same toys to sell in a wealthy North Carolina town for $15 each.They are not price discriminating if:

If the monopolist shown in the following figure could implement a two-part tariff,the entry fee would be:

When Exxoff Oil Corporation offers discounts based on credit card records of gas quantities purchased,they are practicing:

The demand for health club services is Q = 100 - 2P,and the marginal cost of providing these services is MC = -110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?

Price discrimination is defined as:

Women are often charged more than men for haircuts performed by the same haircutter.This is not considered price discrimination because:

If a firm supplies separable markets with price elasticities $\eta$ ₁ and $\eta$ ₂,it should set prices P₁ and P₂ so that:

When Pan United Airlines gives a $400 fare discount to persons with student IDs,they are practicing:

Cereal manufacturers' use of coupons can be partially explained by:

If the monopolist shown in the following figure could practice first-degree price discrimination,the producer surplus would be:

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Bundling and Intrafirm Pricing

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

Exam 9: Managerial Use of Price Discrimination

The optimal level of output and price for the profit-maximizing monopolist in the following figure would be:

The demand for health club services is Q = 350 - 2P and the marginal cost of providing these services is MC = 110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?

When a utility charges homeowners less than big industrial users,it is practicing:

A firm with production located in a poor Georgia town sells toys locally for $10 each and ships the same toys to sell in a wealthy North Carolina town for $15 each.They are not price discriminating if:

If the monopolist shown in the following figure could implement a two-part tariff,the entry fee would be:

When Exxoff Oil Corporation offers discounts based on credit card records of gas quantities purchased,they are practicing:

The demand for health club services is Q = 100 - 2P,and the marginal cost of providing these services is MC = -110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?

Price discrimination is defined as:

Women are often charged more than men for haircuts performed by the same haircutter.This is not considered price discrimination because:

If a firm supplies separable markets with price elasticities η\etaη 1 and η\etaη 2,it should set prices P1 and P2 so that:

When Pan United Airlines gives a $400 fare discount to persons with student IDs,they are practicing:

Cereal manufacturers' use of coupons can be partially explained by:

If the monopolist shown in the following figure could practice first-degree price discrimination,the producer surplus would be:

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Bundling and Intrafirm Pricing

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

If a firm supplies separable markets with price elasticities $\eta$ ₁ and $\eta$ ₂,it should set prices P₁ and P₂ so that: