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vazorg [7]
3 years ago
7

When a firm practices perfect price​ discrimination, it A. charges each consumer her reservation price. B. captures all the soci

al gain. C. takes all consumer surplus from consumers. D. produces the same quantity as would be produced by a competitive market. E. All of the above are true.
Business
1 answer:
frosja888 [35]3 years ago
4 0

Answer:

Option E All the statements are correct.

Explanation:

The reason is that the company which practices perfect price discrimination is the one which is charging different to different customers. So the prcie that the firm charges the price that the customer is willing to pay. This is very common in markets the seller present a number of products and quotes a higher price and then have a healthy conversation with you and then agrees the price. Some people agree at the spot and some agree by heavy debate and forces the seller to reduce the cost otherwise the customer is going away. So this means the company is charging reservation price, takes all the consumer surplus from consumer and captures the social gain which is the maximum gain possible to extract from the person.  

Due to charging different prices to different customers the production is almost average and this constitutes to the quantity that it would had produced if it was operating in the competitive market.

So all the answer are correct here.

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7 0
2 years ago
You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announc
Arturiano [62]

Answer:

This equals $12,256.70 (230 x $50.70 + 230 x $2.59)

Explanation:

The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.

This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.

6 0
3 years ago
Read 2 more answers
Based on an annual disposable income of $40,000, calculate the average amount o money a person would save in japan; in the unite
Gekata [30.6K]

Answer:

Japan     $760

The United States     $1,600

France          $6,320

Explanation:

Total personal revenue is the disposable income less personal taxes. Employee earnings minus employee actual taxes in terms of national reports reflect net established income.

The household saving rate is specified as total saving divided by disposable income.

Household saving = Disposable income * Households saving rate

Japan:

$40,000*1.9% = $760

United States :

$40,000*4% = $1,600

France :

$40,000*15.8% = $6,320

7 0
4 years ago
Collectively, what are the interest costs and other fees for using a credit card called?. A. balance B. credit line C. finance c
Nana76 [90]
The correct answer to this question is this one: "C. Finance Charge." <span>Collectively,  the interest costs and other fees for using a credit card called the finance charge. IT has something to do with the charges after you used the credit cards.</span>
8 0
3 years ago
Read 2 more answers
2. Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize pr
finlep [7]

Answer: They are both right.

Explanation:

Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.

Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.

With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.

5 0
4 years ago
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