In this problem, you need to derive the block-pricing scheme that maximizes profit in the case...

In this problem, you need to derive the block-pricing scheme that maximizes profit in the case of 2nd-degree price discrimination when a monopolist faces a consumer with high demand PH = 80 − QH, a consumer with low demand PL = 50 − QL, and constant marginal cost of $10. For your derivations, assume that the monopolist serves both consumer types and use TL and TH to denote the fixed fees (dollar amounts) charged to the consumers with low and high demand, respectively. Assume also zero fixed costs. a (15). Write the monopolist’s profit-maximization problem in terms of QL, QH, TL, and TH. Do not include the IR and IC constraints. You will provide them below. b (15). Write the IR constraint for the consumers with low demand. c (15). Write the IC constraint for the consumers with high demand. d (20). Write the monopolist’s profit maximization problem in terms of QL and QH. Provide the first-order conditions and the optimal values of QL, QH, TL, and TH. e (10). Calculate the implied profit, consumer surplus, and total welfare.

Expert Solution

Rahul Sunny answered 1 year ago

How do you use R to derive the parameters maximizes the log-likelihood?

Do you agree with the changes Johnson is making to the pricing scheme that set to...

Do you agree with the changes Johnson is making to the pricing scheme that set to take effect August 1st? Are they enough to turn things around? What should Johnson do now? Looking out on year, will JC Penney be a stronger or weaker brand if he stays on the current course?

california's water crisis pricing case solving problem

Derive Green’s Theorem from Sturm-Liouville Eigen Value problem. When do you need Green’s theorem in the...

Derive Green’s Theorem from Sturm-Liouville Eigen Value problem. When do you need Green’s theorem in the context of a Heat or Diffusion Equation?

This case analysis is designed to encourage you to evaluate the pricing and promotion strategies for...

This case analysis is designed to encourage you to evaluate the pricing and promotion strategies for Tesla Motors, the California based company. The company designs, manufactures, and sells electric cars and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components and markets its vehicles through Tesla stores and over the Internet. The company has 80 stores and galleries in North America, Europe, and Asia. Currently, Tesla Motors is planning to go...

This question is concerned with an extension to the flashcard problem you studied in Block 3...

This question is concerned with an extension to the flashcard problem you studied in Block 3 Part 2. In the original flashcard problem, a user can ask the program to show an entry picked randomly from a glossary. When the user presses return, the program shows the definition corresponding to that entry. The user is then given the option of seeing another entry or quitting. A sample session might run as follows: Enter s to show a flashcard and q...

The following multipart problem asks you to derive a number of characteristics of an extrasolar planetary...

The following multipart problem asks you to derive a number of characteristics of an extrasolar planetary system. Assume that the planet has been detected by Kepler with the transit method, and that the transits are periodic (as shown below, a dip in the lightcurve indicates that a planet has moved in front of the star). (a) The star has 3 times the mass of the sun (i.e., M∗ = 3.0M⊙) and the period of the transits are 2.0 Earth years...

Case Problem A Bipartisan Agenda for Change ( Need to Use R coding) In a study...

Case Problem A Bipartisan Agenda for Change ( Need to Use R coding) In a study conducted by Zogby International for the Demaocrat and Chronicile, more than 700 New Yorkrs were polled to dtermine whether the New York state government works. Respondent survyed were asked questions involving pay cuts for state legislators, restrictions on lobbyists, term limits for legislators, and whethr stat citizens should be able to put matters directly on the state ballot for a vote.The results regarding several...

Discuss what you learned from the Pricing case . Post as a main point what you...

Discuss what you learned from the Pricing case . Post as a main point what you learned from the case. Be specific in describing what you learned and how answering the questions led to your learning. CASE is below I DON'T NEED THE PROBLEM SOLVED.. JUST WHAT THE CASE MEAN It is April and you have recently been hired as the manager of Saco Atlantic Truffle Company in Springvale, Maine. You have been asked to improve profitability. The company got...

What are the “Dorfman-Steiner” conditions? Could you derive the formula?(Hint: You may need to look online...

What are the “Dorfman-Steiner” conditions? Could you derive the formula?(Hint: You may need to look online for this answer if it is not covered in class. Write down a revenue function and take derivative.)

Question