Solved

Internet Service in the Local Market Is Supplied by Laura's   ⟺  \iff

Question 13

Essay

Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
= 6,500 - 100P   ⟺  \iff P = 65 - 0.01 Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
. The resulting marginal revenue function for business customers is MR(QB) = 65 - 0.02 Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
. The second type is residential customers, and residential demand
is Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
= 12,500 - 500P   ⟺  \iff P = 25 - Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
. The resulting marginal revenue function for residential customers is MR(QR) = 25 - Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
QR. Laura's marginal cost function is
MC(QB + QR) = Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
+ Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is = 6,500 - 100P \iff P = 65 - 0.01 . The resulting marginal revenue function for business customers is MR(Q<sup>B</sup>) = 65 - 0.02 . The second type is residential customers, and residential demand is = 12,500 - 500P \iff P = 25 - . The resulting marginal revenue function for residential customers is MR(Q<sup>R</sup>) = 25 - Q<sup>R</sup>. Laura's marginal cost function is MC(Q<sup>B</sup> + Q<sup>R</sup>) = + . If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?
. If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?

Correct Answer:

verifed

Verified

To maximize profits, Laura will choose t...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q11: Marge's Beauty Salon sells shampoo and conditioner.

Q16: Which of the following statements is NOT

Q32: After graduation, you start an internet-based firm

Q60: The Tire Shed is a regional chain

Q63: The authors note that advertising can make

Q67: Which of the following statements is true?<br>A)

Q68: The Happy Mountain Brewing Company sells ground

Q99: The price elasticity of demand for nursery

Q113: One Guy's Pizza advertising expenditures are $1,200

Q127: You interview with an athletic footwear manufacturer