Answer:
The two optimal two part price that would be suggested to Verizon is Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Explanation:
Solution
For us fully maximize profit under two part price It should gives that amount of wireless service at which P = MC and and also charge Lump sum fee or fixed fee equals to the consumers surplus that consumer will have.
Now,
marginal cost= MC = 1 and P = 100 - 25Q.
Thus,
P = MC => 100 - 25Q = 1 => Q = 2
Then,
The Consumer surplus is the above area Price of line which is (iP = 1) and below is the curve of demand
Now,
P = 100, When Q = 0 The Consumer surplus = (1/2)*base*height
= (1/2)*(100 - 1)*2 = 99
Therefore, Fixed fee or The Lump Sum fee = 99
However, the Optimal two part pricing is denoted by:
The Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
A motorcycle or scooter would be the best option for Jim. Couple means two, so for two years, buying a very poor car would be the only option as to not go over two years of paying a loan on the car. What would cost Jim most is the fuel. A poor car will get very poor mpg, and short, stop and go, type trips is what takes the most fuel from any given vehicle. Commuting motorcycles and scooters alike can reach over one hundred miles per gallon. You can pay downward from five thousand dollars for a top of the line scooter if Jim so chooses.
I hope this helps.
Many companies make other goals a priority over profit maximization. Additionally, some aspects of running a business that meets social and environmental obligations take away from the sole focus of profit maximization.
Answer:
<u>There is a movement along a given supply curve.</u>
Explanation:
When the price of a good or service changes, consequently there are several factors that will influence demand. Some of them are the quantity demanded, which due to a price change may increase or decrease compared to the original demand. Therefore, this is a factor that will influence a movement along the demand curve.
