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Gre4nikov [31]
3 years ago
11

In this particular example, the optimal two-part tariff is a per-unit price of $1 and a fixed fee of $29. But notice that with t

his pricing structure, the Low-type consumer will not purchase any units of the product! Why was it optimal for the firm to set a pricing structure that intentionally shut the low-type consumer out of the market
Business
1 answer:
IRINA_888 [86]3 years ago
5 0

Answer:

The seller sets such high prices to increase his revenue. If he sets lower price, the revenue will also be less whereas high pricing will result in more revenue. Sellers sometimes set price as high as 800% above the cost. Though it discourages low type consumer but ensure high return by exploiting high paying capacity consumers. e.g. Apple (iPhone). Next it protects the seller from floating prices. Also by setting high price, sellers target high paying capacity consumers and increase their revenue manifold.

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Gloria deposited $500 into a bank account that earned 7. 5% simple interest each year. She earned $225 in interest before closin
timama [110]

The number of years in which the money is in the account is 6 years.

<h3>What is simple interest?</h3>

Simple interest denotes the amount of payment that is received or paid by a person in return for anything pledged or given a loan.

The interest computed on the principal amount for a specified duration of time and rate of interest is called simple interest.

The formula of simple interest:

\text{SI}= \text{P}\times r \times t

Where, (P) stands for principal, (r) for interest rate, and (t) is for the time period.

<u>Computation </u><u>of a number of years:</u>

According to the given information,

P=$500,

r=7.5%,

t=?

SI= $225

Now, substitute the given values in the above formula, we have:

\text{SI}= \text{P}\times r \times t\\\\\$225=\$500\times\ 7.5\%\times t\\\\t= 6 \text{Years}

Therefore, the number of years is 6 years.

To learn more about the simple interest, refer to:

brainly.com/question/2793278

5 0
2 years ago
Why is it important to invest
Svetradugi [14.3K]

it's important to invest so you can have a better life once that thing you invested in makes you money and not all of them do so keep that in mind

3 0
3 years ago
When supply increases, the supply curve
MariettaO [177]

When supply increases, the supply curve  shifts to the right.

<h3>What is the supply curve?</h3>

This is the curve that is used to show the amount of goods that the producers would be able to make available for the market at a particular price. The supply curve shifts to the right when there is an increase in supply in the economy.

Hence this answers our question by saying that When supply increases, the supply curve  shifts to the right.

Read more on supply curve here: brainly.com/question/11717727

#SPJ1

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