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Scorpion4ik [409]
3 years ago
7

Suppose a monopoly can separate its customers into two groups. If the monopoly practices price discrimination, it will charge th

e lower price to the group with: the higher price elasticity of demand. the lower price elasticity of demand. the fewer close substitutes. The answer cannot be determined with the information given.
Business
2 answers:
max2010maxim [7]3 years ago
4 0

Answer:

the higher price elasticity of demand

Explanation:

A monopoly is when there is only one firm operating in an industry.

Price discrimination is when a producer sells the same good for different prices in different markets.

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price has greater effect on the quantity demanded.

A monopoly would charge the lower price for customers with a higher elasticity of demand because if price is high consumers would reduce the quantity demanded and the revenue of the monopoly firm would fall.

I hope my answer helps you.

Vlad [161]3 years ago
4 0

Answer:

The correct answer is letter "A": the higher price elasticity of demand.

Explanation:

Elasticity is a measure of the reaction of a variable to fluctuations in another variable. It can describe to what degree a product or service's supply or demand, varies with the price of the goods or consumer income. Elasticity is calculated by dividing the percentage change in quantity demanded with the percentage change in price.

Thus, while allocating prices, <em>a company should provide a lower price to a sector with high elasticity because that part of the market is prone to make big demand changes if the price varies abruptly.</em>

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Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecas
Wewaii [24]

Answer:

3

Explanation:

Data provided in the question:

Sales for the last four months :

8, 10, 15, and 9 units

Last four forecast of sales:

9, 11, 8 and 12 units

Now,

The mean absolute deviation (MAD) value of these forecast will be calculated as:

MAD = [ ∑|Sales - Forecast sales| ] ÷ [ Total number of forecast ]

or

MAD =  [ |8 - 9| + |10 - 11| + |15 - 8| + |9 - 12| ] ÷ 4

or

MAD = [ 1 + 1 + 7 + 3 ] ÷ 4

or

MAD = 12 ÷ 4

or

MAD = 3

4 0
3 years ago
Consider two companies in a world with no taxes that are alike except in borrowing choices. Company 1 has no debt​ financing, an
Alekssandra [29.7K]

Answer:

Company 1 = $2 per share

Company 2 = $2.50 per share

Explanation:

Given that,

EBIT for both companies = $1,000

Number of shares outstanding for company 1 = 500

Number of shares outstanding for company 2 = 300

Interest paid by company 2 = $250

EPS for company 1:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $0) ÷ 500

= $2 per share

EPS for company 2:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $250) ÷ 300

= $750 ÷ 300

= $2.50 per share

6 0
3 years ago
Minion, Inc., has no debt outstanding and a total market value of $344,400. Earnings before interest and taxes, EBIT, are projec
loris [4]

Answer:

A. $5.97

$6.99

$4.42

B. 17%

26%

Explanation:

A. If Economy conditions are normal

$49,000 / 8,200 shares = $5.97 each

If Economy expands

$49,000 * 117 / 100 = $57,330

$57,330 / 8,200 shares = $6.99 each

If Economy is in recession

$49,000 * 74 / 100 = $36,260

$36,260 / 8,200 = $4.42 each

B.

If Economy expands

$6.99 - $5.97 = $1.02

$1.02 / $5.97 * 100 = 17%

If Economy is in recession

$4.42 - $5.97 = -$1.55

-$1.55 / $5.97 = -26%

6 0
2 years ago
Pattison Corporation is a service company that measures its output by the number of customers served. The company has provided t
allsm [11]

Answer:

Pattison Corporation

Activity Variance for "Travel expenses" for May would have been closest to:

$1,500 Favorable

Explanation:

Data and Calculations:

                           Fixed Element         Variable Element per  

                              per Month              Customer Served

Revenue                                                        $5,500

Employee salaries

 and wages            $46,300                         $1,000

Travel expenses                                             $ 500

Other expenses    $32,500

The Travel Expenses Activity Variance = Actual cost minus budgeted cost

= $8,500 - $10,000

= $1,500 Favorable

Actual travel expenses = ($500 x 17)

= $8,500

Budgeted travel expenses =  ($500 x 20)

= $10,000

Pattison Corporation's activity variance for Travel Expenses for the month of May is the difference between the actual travel expenses and the budgeted travel expenses.  The budgeted expenses are based on budgeted number of customers served in May while the actual expenses are based on actual number of customers served in May.

6 0
3 years ago
Jell and dell were partners with capital balances of 600 and 800 and an income sharing ratio of 2:3. They admitted zell with a 3
wel

Answer: $900

Explanation:

The Total Capital of the company before Zell was admitted was;

= Capital balances + Goodwill

= 600 + 800 + 700

= $2,100

If they admitted Zell in with a 30% interest, this means that the $2,100 is equivalent to 70% of the company's capital.

If that is the case then Total capital is;

= 2,100/ 70%

= $3,000

Zell's contribution is;

= 30% * 3,000

= $900

4 0
3 years ago
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