Question
In: Economics
2) Two types of customers make up the market for Armoyas. There are 100 type A...
2) Two types of customers make up the market for Armoyas. There are 100 type A customers, each of whom is willing to pay up to $10 for an Armoya. There are 50 type B customers, each willing to pay up to $8 for an Armoya. No customer wishes to buy more than a single Armoya. The monopolist cannot differentiate between the types of customer. The average and marginal cost of production is constant at $6/Armoya.
a) What is the selling price of the good, and how much profit does the monopolist make?
b) The monopolist is offered the opportunity to advertise Armoyas at a cost of $80. The advertisement is predicted to attract another 100 type B customers. Will the advertisement be placed? What is the selling price of the good, and how much profit does the monopolist make?
c) Suppose the advertisement attracts no new customers, but raises the price all existing customers are willing to pay by $1. Will the advertisement be placed? What is the selling price of the good, and how much profit does the monopolist make?
Solutions
Rahul Sunny answered 6 months agoRelated Solutions
Two types of customers make up the market for Armoyas. There are 100 type A customers,...
Two types of customers make up the market for Armoyas. There
are 100 type A customers, each of whom is willing to pay up to $10
for an Armoya. There are 50 type B customers, each willing to pay
up to $8 for an Armoya. No customer wishes to buy more than a
single Armoya. The monopolist cannot differentiate between the
types of customer. The average and marginal cost of production is
constant at $6/Armoya.
a)What is the selling price...
Two types of customers make up the market for Armoyas. There are 80 type A customers,...
Two types of customers make up the market for Armoyas. There
are 80 type A customers, each of whom is willing to pay up to $10
for an Armoya. There are 40 type B customers, each willing to pay
up to $8 for an Armoya. No customer wishes to buy more than a
single Armoya. The monopolist cannot differentiate between the
types of customer. The average and marginal cost of production is
constant at $6/Armoya.
What is the selling price...
What is the make-up of customers and target market for a candy store?
What is the make-up of customers and target market for a candy
store?
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson...
A queueing system serves two types of customers. Type 1
customers arrive according to a Poisson process with a mean rate of
5 per hour. Type 2 customers arrive according to a
Poisson process at a mean rate of 3 per hour. The
system has two servers, both of which serve both types of customer.
All service times have exponential distribution with a mean of 10
minutes. Service is provided on a first-come-first-served
basis.
a. What is the probability distribution...
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson...
A queueing system serves two types of customers. Type 1
customers arrive according to a Poisson process with a mean rate of
5 per hour. Type 2 customers arrive according to a
Poisson process at a mean rate of 3 per hour. The
system has two servers, both of which serve both types of customer.
All service times have exponential distribution with a mean of 10
minutes. Service is provided on a first-come-first-served
basis.
a. What is the probability distribution...
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson...
A queueing system serves two types of customers. Type 1
customers arrive according to a Poisson process with a mean rate of
5 per hour. Type 2 customers arrive according to a
Poisson process at a mean rate of 3 per hour. The
system has two servers, both of which serve both types of customer.
All service times have exponential distribution with a mean of 10
minutes. Service is provided on a first-come-first-served
basis.
a. What is the probability distribution...
Assume that you have two types of customers in an insurance market.
Assume that you have two types of customers in an insurance
market. Both types have the same utility function U(W) = W½ where W
denotes wealth. The probability of a bad outcome is pA = ½ for type
A customers and qB = ¼ for type B customers. Assume that the level
of wealth in the bad outcome is 10000 and that the level of wealth
in the good outcome is 50000.a) Derive the optimal insurance solution assuming that the...
MAKE A POST FOR ONE OF 3 TYPES OF DIABETES PATIENTS: TYPE 1, TYPE 2, OR...
MAKE A POST FOR ONE OF 3 TYPES OF DIABETES PATIENTS: TYPE 1,
TYPE 2, OR GESTATIONAL. IN YOUR RESPONSE, FOCUS ON THE TYPE OF
PATIENT YOU ARE TREATING AND ANSWER THE FOLLOWING:
GIVE AN OVERALL EXPLANATION OF DIABETES AND IMPORTANT OVERALL
INFORMATION REGARDING THE PATHOPHYSIOLOGY OF THE ILLNESS.
WHY IS FOOT CARE SO IMPORTANT WITH DIABETIC PATIENTS AND WHAT
ARE THE RECOMMENDATIONS YOU WOULD GIVE A DIABETIC PATIENT AS A
NURSE?
WHICH TYPE DIABETIC PATIENT WILL YOU BE WRITING...
You are a profit-maximizing firm. Suppose there are two types of customers (50% of 1 type,...
You are a profit-maximizing firm. Suppose there are two
types of customers (50% of 1 type, 50% of the other) who shop in
your specialty clothing store. Consumers of type R will pay
$80 for a coat and $60 for pants.
Consumers of type S will pay $60 for a coat and
$75 for pants. Your firm faces no competition and
but it does pay for the clothing, $30 per coat and
$50 per pair of pants, i.e. MCcoat =...
You are a profit-maximizing firm. Suppose there are two types of customers (50% of 1 type,...
You are a profit-maximizing firm. Suppose there are two types of
customers (50% of 1 type, 50% of the other) who shop in your
specialty clothing store. Consumers of type R will pay $80 for a
coat and $60 for pants. Consumers of type S will pay $60 for a coat
and $75 for pants. Your firm faces no competition and but it does
pay for the clothing, $50 per coat and $30 per pair of pants, i.e.
MCcoat =...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain how biology, culture, and their interaction shape sex differences.
- Write a program that computes the tax and tip on a restaurant bill for a patron...
- clear all close all % %*******Parameter Settings******** %********************************* Fs=8192; %Sampling frequency (MATLAB's default) Ts=1/Fs; %Sampling time...
- Name a business that you believe has experienced declining costs attributable to computerization. Were variable costs...
- With C++, 1. Assume we use two linked lists that represent Set A and Set B...
- A beam of light shines on an equilateral glass prism at an angle of 45∘ to...
- This is an intro to python question. #Write a function called search_for_string() that takes two #parameters,...
ADVERTISEMENT