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navik [9.2K]
3 years ago
12

Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100,00

0 units and sell them at a price of $5.00 per unit. Suppose that at that price, the price elasticity of demand for men is -3.50, and the price elasticity of demand for women is -0.80. The monopolist is considering whether he should set discriminatory prices and asks for your advice.
Business
1 answer:
matrenka [14]3 years ago
3 0

Answer:

Monopolist can charge a higher price from women.

Explanation:

A monopolist is producing 100,000 units of a product.  

The price of the product is $5 per unit.  

The price elasticity of demand for men at this price is -3.5.

The price elasticity for women, on the other hand, is -0.8.

This means that the men have a relatively elastic demand for the product. While on the other hand, women have relatively inelastic demand. This implies that if the price is increased the demand from women will not change by a greater proportion.  

While demand from men can change to a greater proportion because of a change in price.  

In this situation, the firm can charge a higher price from women. This is an example of third-degree price discrimination.

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If these are the missing choices:
A) short-term
B) risky
C) innovative
<span>D) expansionary

My answer is C. INNOVATIVE. 

Innovative is defined as an adjective that may refer to a person who introduces new ideas that are original and creative. It may also refer to a product, service, or idea that features new methods or designs that help advance our technology unlike no other. 

Since Bill's organization expected to derive a 50% profit from products that did not exist five years ago, it is safe to assume that Bill's organization was the one to innovate and launch the product. </span>
7 0
3 years ago
7.
lina2011 [118]

Answer:

I think it would be either B or C

I can't tell between those too I'm sorry

4 0
3 years ago
Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be
solong [7]

Answer:

total payment will be $21,000.

Explanation:

The Payment at maturity will include, the Principle amount (amount borrowed) and the Interest that accrued over the period of the note payable.

<u>Total Payment Calculation :</u>

Principle amount            = $20,000

Interest ($20,000 × 5%) =    $1,000

Total Payment                =  $21,000

7 0
3 years ago
Sarah's house caught on fire. Through the prompt assistance of her neighbor Odessa, the fire was quickly extinguished. In gratit
Zepler [3.9K]

Answer:

To enforce this promise we need to analyse whether there has been any agreement or contract between Sarah and Odessa and whether the same can be enforced.

Explanation:

In Sarah's case, her offer to gratuitously pay the neighbor for assisting in the house fire is not an enforceable contract. When the neighbor rushed to help in the fire, the offer to pay $1,000 had not yet been extended. When Sarah did extend the offer to pay $1,000, there was no consideration exchanged between both parties. The consideration, putting out the fire, had already occurred without the offer or acceptance of a contract.

Consider an alternate scenario. Sarah's house was on fire, and she could not wait for the fire department. She ran to her neighbor's house, begged for help, and offered $1,000 in exchange for neighbor's assistance. After hearing Sarah's plea, the neighbor agrees to assist in extinguishing the fire. This constitutes a contract; an offer, consideration, and acceptance.

3 0
3 years ago
Boyd's Bicycle Sales and Repairs Co. offers a 6-month warranty on all new bicycle purchases. Based on history, Boyd determines t
guapka [62]

Answer:

Boyd will record Warranty Expense in the amount of $400 for the month.

Explanation:

Warraty expense is an obligation on the business because business idmliable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.

Sales = $20,000

Warranty repair = 2% of Sales

Warranty Expnese = Sales x Warranty repairs percentage

Warranty Expnese = $20,000 x 2%

Warranty Expnese = $400

4 0
3 years ago
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