How much profit is the firm going to make under this scheme?

Gliberaces Fashion Accessories of Las Vegas produces gem-stone encrusted form Show more Question 1 Gliberaces Fashion Accessories of Las Vegas produces gem-stone encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 6(QLA + QSF). Demand for Gliberaces stones in the two cities is given by QLA = 70 2PLA and QSF = 50 PSF. 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? 15 21 24 12 18 Question 2 Gliberaces Fashion Accessories of Las Vegas produces gem-stone encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 6(QLA + QSF). Demand for Gliberaces stones in the two cities is given by QLA = 70 2PLA and QSF = 50 PSF. If Gliberace cannot price discriminate between the two cities and so charges the same price in each what will be that price? $33 $19 $27 $23 $25 Question 3 Gliberaces Fashion Accessories of Las Vegas produces gem-stone encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 6(QLA + QSF). Demand for Gliberaces stones in the two cities is given by QLA = 70 2PLA and QSF = 50 PSF. If Gliberace cannot price discriminate between the two cities and so charges the same price in each how much profit will the firm make? $867 $827 $538 $767 $727 Question 4 Professor writes a book. The demand for the book is P=20-Q. The fixed cost to produce the book is $10. Professor Stoian wants to sell the book as an ebook downloadable from his website. Marginal cost in this case would be zero and it costs him nothing to run his website. He wants to give students the possibility of letting them pay whatever amount they want for the ebook. Suppose all students will pay their maximum willingness to pay. How much profit professor Stoian will make? $190 $390 $200 $400 $0 Question 5 Suppose a firm faces the following demand for their product: P=100-Q. Further assume that the marginal cost to produce the product is $10 and that the fixed costs are $15. The firm is thinking of implementing the following pricing technique: sell as much as it can at a price of $40 then decrease the price to $25 and sell as much as it can. How many units in total is it going to sell under this scheme? 100 75 135 15 60 Question 6 Suppose a firm faces the following demand for their product: P=100-Q. Further assume that the marginal cost to produce the product is $10 and that the fixed costs are $15. The firm is thinking of implementing the following pricing technique: sell as much as it can at a price of $40 then decrease the price to $25 and sell as much as it can. How much profit is the firm going to make under this scheme? $1975 $2010 $1860 $1875 $2025 Question 7 Suppose a firm sells its products to identical consumers and each of them has the following demand for its product: P=40-Q. Further assume that the marginal cost to produce the product is $5. The firm is thinking of implementing the two part pricing technique: charge consumers an entrance fee and then charge $5 per each unit the consumers consume. Under this scenario what should be the entrance fee for each consumer? $35 $1225 $40 $1225.50 $612.50 Question 8 Suppose a firm sells its products to identical consumers and each of them has the following demand for its product: P=40-Q. Further assume that the marginal cost to produce the product is $5. The firm is thinking of implementing the two part pricing technique: charge consumers an entrance fee and then charge $5 per each unit the consumers consume. Under this scenario what would be the producer surplus per each customer? $40 $1225 $35 $1225.50 $612.50 Question 9 Suppose there are two firms A and B in the market and the market demand is P = 50 Q where P is the price per unit and Q is the total quantity produced by the two firms (the sum of QA and QB ). The marginal cost of producing the product is $10 for both firms and fixed costs are zero. Determine how much should firm A produce at the Cournot equilibrium. 26.66 26 22 13.33 23.33 Question 10 Suppose there are two firms A and B in the market and the market demand is P = 50 Q where P is the price per unit and Q is the total quantity produced by the two firms (the sum of QA and QB ). The marginal cost of producing the product is $10 for both firms and fixed costs are zero. Determine what would be the price if both firms would produce at the Cournot equilibrium. 22 23.33 13.33 26 26.66 Show less

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