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attashe74 [19]
3 years ago
8

A monopolist's profits with price discrimination will be Select one: a. lower than if the firm charged a single, profit-maximizi

ng price b. the same as if the firm charged a single, profit-maximizing price. c. higher than if the firm charged just one price because the firm will capture more consumer surplus. d. higher than if the firm charged a single price because the costs of selling the good will be lower.
Business
1 answer:
adell [148]3 years ago
8 0

Answer:

c. higher than if the firm charged just one price because the firm will capture more consumer surplus. 

Explanation:

Price discrimination is when a producer charges different prices for the same goods or services to different customers.

For price discrimination to be successful, the producer should be able to successfully determine the willingness to pay of the different groups of consumers and charge consumers at their willingness to pay.

Price discrimination aims to reduce consumer surplus.

Consumer surplus is the difference between the willingness to pay of consumers and the price they actually pay.

An example of consumer surplus:

Assume a producer sells his pens for $ 10 dollars. If he sells 100 pens, his total revenue would be $1000. Assume there are two groups of customers based on their willingness to pay. The first group of customers have a willingness to pay of $15 And the second group have a willingness to pay of $12. Assume there are 50 people in each group. If the supplier charges the two groups at their willingness to pay, the total revenue of the supplier = ($15×50) + ($12×50) = $1350.

The total revenue is higher with price discrimination when compared with no price discrimination.

I hope my answer helps you.

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What is dismissal in business?​
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3 years ago
Television channel operating profits vary from as high as 45 to 55 percent at MTV and Nickelodeon down to 12 to 18 percent at NB
Xelga [282]

Answer:

Explanation:

MTV and cable channels can have higher operating profits largely because they have lower costs and can reach very specific demographic groups quite easily. MTV and Nickleodeon are typically not paying high and uncertain prices for their shows. They air mainly reruns of proven shows or relatively low-cost reality shows. This means that they have more cost certainty.

In addition, they have very clear target audiences where the networks do not. MTV is clearly aimed at teens and young adults while Nickleodeon is a kids' channel. Advertisers are attracted to channels with such clear demographics.

As far as Porter's five forces go, the most likely reason for the higher cable profits would have to do with brand equity and the lower propensity among buyers to substitute.

These would mean that cable channels have a lower threat of new competition and a lower threat of substitute products. It is true that it is easy for a new cable channel to be created, but it is much harder for such a channel to get the name recognition and brand equity that MTV and Nickleodeon have.

4 0
3 years ago
Lillian Fok is president of Lakefront​ Manufacturing, a producer of bicycle tires. Fok makes 1 comma 000 tires per day with the
solniwko [45]

Answer:

Labor productivity= 2.35 tires per hour of work

Explanation:

Giving the following information:

Fok makes 1,000 tires per day with the following​ resources: ​

Labor: 425 hours per day ​at $12.50 per hour.

The labor productivity is calculated based on the number of units made divided by the amounts of hours required:

Labor productivity= 1,000/425= 2.35 tires per hour of work

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Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead wa
Viefleur [7K]

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.

<h3>What does an unfavorable overhead volume variance mean?</h3>

An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the manufacturer's output was less than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.

Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company's profit will be less than expected.

To learn more about Unfavorable variance  visit the link

brainly.com/question/24064163

#SPJ4

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1 year ago
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