1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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>

You might be interested in
At the end of January of the current year, the records of NewRidge Company showed the following for a particular item that sold
const2013 [10]

FIFO will result in higher pretax income and EPS.

FIFO ("first in, first out") is based on these production costs, assuming that the oldest products in a company's inventory are sold first. The LIFO (last in, first out) method assumes that the newest product in the company's inventory was sold first, and uses that cost instead.

FIFO (First In, First Out) Inventory Management evaluates inventory to reduce the likelihood of business losses when products are phased out or discontinued. LIFO (last in, first out) inventory management is suitable for non-perishable goods and uses the current price to calculate the cost of goods sold.

Learn more about FIFO at

brainly.com/question/24938626

#SPJ4

5 0
1 year ago
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset
skelet666 [1.2K]

Answer:

$13,000

Explanation:

Most property purchased during 2019 and beyond, may be expenses using Section 179 tax deductions. The limit for 2019 was $1 million and that is way more than $13,000. Section 179 is one of the few benefits that small business got from the Tax Cut and Jobs Act, and it can be really useful.

Businesses can deduct the full purchase price of qualifying equipment (used manufacturing equipment qualifies) as long as it was purchased after January 1, 2019. This is an incentive created to encourage businesses to buy more equipment and invest more.

5 0
3 years ago
Which of the following is known as a partnership agreement? articles of partnership distribution of assets shared liability the
Vlad1618 [11]
The correct answer is shared liability
5 0
3 years ago
Laura's father, Albert, gave Laura a gift of 500 shares of Liba Corporation common stock in 2017. Albert's basis for the Liba st
Vikentia [17]

Answer:

B) $3,000

Explanation:

Since Laura acquired this property (stocks) by gift, her basis for loss will be $3,000 which is equal to the fair market value at the time she received the gift. If she had made a gain with this transaction, her basis for gain would have been the $4,000 of her father's basis.

7 0
3 years ago
Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each c
masha68 [24]

Answer:

Explanation:

There are primarily two types of costs, i.e. variable costs and the fixed costs. The variable cost is the cost which changes when the level of production changes, whereas the fixed cost is the cost which remains constant whether the level of output changes or not.

The variable costs also include indirect products, indirect labor and manufacturing equipment, and the fixed costs include taxes and depreciation costs.

The period cost is that cost which is related to the selling and admin expenses plus it is not capitalized.

Whereas the product cost is a mix of direct labor, direct material and the manufacturing overhead

So, the categorization is shown below:

1. Hamburger buns in a Wendy's outlet. = variable and product cost

2. Advertising by a dental office. = Fixed and period cost

3. Apples processed and canned by Del Monte. =  variable and product cost

4. Shipping canned apples from a Del Monte plant to customers. = variable and period cost

5. Insurance on a Bausch & Lomb factory producing contact lenses. = fixed and product cost

6. Insurance on IBM's corporate headquarters.= fixed and period cost

7 0
3 years ago
Other questions:
  • Lena works as an order-taker at fast burger, a fast-food restaurant. she does not cook food, or even package the final order, bu
    15·2 answers
  • Research shows that just ________ minutes of exercise can help calm you for as long as 24 hours.
    11·1 answer
  • What would happen to the demand curve for movie tickets if the cost of making movies increased sharply? 2. What would happen to
    11·1 answer
  • An investment website can tell what devices are used to access their site. the site managers wonder whether they should enhance
    13·1 answer
  • In which case did the U.S. Supreme Court hold that the warrantless search authority normally reserved for probation and parole o
    10·1 answer
  • Good Y is a normal good. If the average income of those who buy good Y rises, the _____________ curve for good Y will shift ____
    8·1 answer
  • The type of interest earned on a deposit account that is calculated on both the principal deposit
    11·1 answer
  • What boy do you simp for in Harry Potter?
    15·2 answers
  • What courses does ojt have like eg welding, it have any more​
    10·1 answer
  • British economist David Ricardo argued that states should trade based on their _____, whereby each state produces and exports th
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!