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attashe74 [19]
4 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]4 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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3 0
3 years ago
Cash Now Industries just hired 500 new workers to build ATMs and self-service check-out systems at its manufacturing plant in Te
Sliva [168]

Answer:

The correct option is A, insourcing

Explanation:

Insourcing refers to the processes of developing competences,skills and capabilities within the organization rather placing core functions in the hands of external firm by using employees of the company.

Even though insourcing is more expensive in short-term but it is cheaper overall than outsourcing in the long-run.

Outsouring  is contracting tasks to outside firms that are known as experts in their respective fields of human endeavors.

Benchmarking is about comparing processes within the organization with similar firms modes of operations in order to identify best practice

4 0
3 years ago
Trisha's Tasty Treats, a bakery and coffee shop, is having a grand opening on Saturday to celebrate its newest location. In addi
olga_2 [115]

Answer:

d) communicate value

Explanation:

the question was missing the options:

a) deliver value

b) forecast value

c) explain value

d) communicate value

In marketing, communicate value refers to getting your customers  (potential in this case), to believe that they are getting a good deal when they purchase your products or services. We all assign come type of value to our purchase decisions, and when we assign a higher value than its to a product, we as customers get customer surplus. The higher the value that our customers believe that our product is worth, the more they will be willing to pay for it. When customers feel that our product is not worth its price, then they will simply stop purchasing it.  

6 0
3 years ago
"Scott Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric
Assoli18 [71]

Answer:

Total costs= $75,000

Explanation:

Giving the following information:

For 10,000 units:

$40,000 for direct labor

$4,000 for electric power

Total fixed costs are $23,000

We need to determine the unitary variable cost for direct labor and electric power:

Unitary direct labor= 40,000/10,000= $4

Electric power= 4,000/10,000= $0.4 per unit

Now, for 12,000 units:

Total direct labor cost= 4*12,000= $48,000

Electric power= 0.4*12,000= $4,800

Fixed costs= 23,000

Total costs= $75,000

4 0
3 years ago
Net credit sales $120,000 Average accounts receivable 20,000 Cash collections on credit sales 100,000 What is the receivables tu
Kazeer [188]

Answer:

6:1

Explanation:

Net credit sales is $120,000

Account receivable is $20,000

Cash collection on credit sales is $100,000

.

Therefore the receivables turnover ratio can be calculated as follows

= 120,000/20,000

= 6:1

Hence receivable turnover ratio is 6:1

4 0
3 years ago
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