1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 20,000 Selling price per unit $ 30
xenn [34]

In order to find Net Income as per traditional income statement, we will first require to calculate cost of goods sold as below:

Beginning Merchandise Inventory................................................24000

Add: Purchases..................................................................................180000

Less: Ending Merchandise Inventory...........................................(44000)

Cost of Goods Sold............................................................................160000

Traditional Income Statement

Sales................................................................................................................600000

Less: Cost of Goods Sold..........................................................................(160000)

Gross Profit....................................................................................................440000

Less: Selling and Administrative Expenses

Variable Selling Expense.........................................................80000

Variable Admin Expense............................................................40000

Fixed Selling Expense.................................................................40000

Fixed Admin Expense...................................................................30000

Total .......................................................................................................................(190000)

Net Income.............................................................................................................250000

3 0
3 years ago
Read 2 more answers
When housing prices ________ as they did beginning in 2006 following the housing market bubble, most banks and other lenders tig
-Dominant- [34]

Answer:

"Fell" "Harder"

Explanation:

When housing prices fell as they did beginning in 2006 following the housing market bubble, most banks and other lenders tightened the requirement for borrowers, making it harder for potential home buyers to obtain mortgages.

6 0
3 years ago
At a price of $2,000 per unit, the demand for Rancho 60 mountain bikes from Peyton Bike's Inc. is 300 units, which is the number
MaRussiya [10]

<em>If the marketing managers at Peyton Bike's Inc. decide to sell each bike at a price lower than $2,000 per unit</em><em>, a shortage of bikes will be created.</em>

<h3>Why are bikes in short supply?</h3>

As a result, additional problems like plant shutdowns and disruptions as well as the unheard-of increase in bike orders during the peak of the coronavirus pandemic have added to the supply chain difficulties. The sector has never before experienced such a massive increase in demand as it has over the past two years.

learn more about<em> </em>shortage of bikes here <u>brainly.com/question/13000057</u>

#SPJ4

4 0
2 years ago
What does the size of the dividend per share of stock depend on?
docker41 [41]
The size of the dividend per share of stock depend on : The corporation's profit

Dividend per share is calculated by : Total dividend / Total shares outstanding,

Which mean that dividend per share will increase if the total dividend increases.

Meanwhile total dividend will increased if the company gains more profit
7 0
3 years ago
Read 2 more answers
When economists refer to "demand," they are speaking of:a) how much everyone wants of all products bought and sold in the nation
stellarik [79]

Answer:

d) all of the above.

Explanation:

All of the above statement correspond to different definitions of demand that economists use on a daily base.

Statement A) refers to aggregate demand, which is roughly equivalent to GDP.

Statement A.2) refers to demand schedule, which is also simply referred to as demand in the press, or in informal contexts.

Statement B) refers to an equilibrium quantity demanded, which occurs when supply and demand meet under an equilibrium price.

Statement C) refers to quantity demanded because it is not always relevant, when talking about demand, whether the good demanded is a necessity or a luxury.

3 0
3 years ago
Other questions:
  • An employee observes an outside individual putting some computer disks in her purse. the employee does not report this security
    5·1 answer
  • On September 1, Vicario, Inc., borrows $100,000 from First National Bank at 6 percent annual interest. This note is due in 90 da
    12·1 answer
  • The demand for land, labor, and capital used to produce a good depends on which of the following factors?
    10·1 answer
  • Growth of specialization in the kinds of jobs people hold __________. has slowed dramatically since the 1970s, along with the de
    15·1 answer
  • These bonds are collateralized securities with first claims in the event of bankruptcy. These bonds are not backed by any physic
    8·1 answer
  • The belief that the money supply is the most important factor in macroeconomic performance is _____.
    5·1 answer
  • Creating and distributing __________ is one of the most widespread types of cyber crime.
    7·1 answer
  • Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of thi
    13·1 answer
  • What is an example for empathy and being able to recover quickly from emotional experience?
    9·1 answer
  • A customer has just notified the brokerage firm of a change of address. How long does the broker-dealer have to provide the cust
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!