a. 0 b. 50 c. -10 Firm A d. 25 Low Price High Price Suppose that Firm A cheats, and B does not. What is A's payoff from cheating? Firm B Low Price 0,0 -10, 50 High Price 50,-10 25, 25
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- Figure 14-9 Price $29 Po Pa P₂ P₂ Ps Q & a. (P5- P4) × Q3 b. (P5- P3) x Q3 OC. (P5- P4) × Q2 . d. (PS- P3) x Q2 * AVC ATC 6₂ Q₂ Quantity Refer to Figure 14-9. When market price is P5, which area represents a profit-maximizing firm's profits?Price a aa a Ps PA P3 P2 T P₁ Q₁ 82 (P2-P1) × Q2 (P3-P1) × Q2 (P2-P1) × Q1 (P4-P1) × Q1 S MC la AVC ATC Quantity Refer to the figure. When market price is P₁, which area represents a profit-maximizing firm's losses?You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.
- Figure 9-1 MC ATC MR Quantity Refer to Figure 9-1. What area indicates the profit-maximizing firm's total revenue? O OBGQ2 O OAEQ1 DAEF ODFQ1 Price23. The graph below depicts the demand for a sausage. This is the only company that sells this produ so it is a price maker with the MR depicted. What is the profit maximizing quantity for the firm to produce? (The firm can't shut down or exit so don't consider that as an option.) 45 ($kg) 40 35 + 30 25 ATC 15 + 10 MC MR 2 4 6 8 10 12 14 16 18 20 Q (kg) Q = 20 LO4. Alset produces electric cars, which have short range or long range. There are 100 drivers who are "Commuters" and 100 who are “Travelers." Their reservation prices are as follows: Short Range Long Range 49,000 Commuters 30,000 Travelers 40,000 95,000 Marginal cost is equal to 10,000 for cars with short and long range both. Alset knows the distribution of reservation prices but does not know the reservation prices of any individual driver. (i) Suppose that Alset sells one type of car and employs linear pricing. Which type will it sell and what will the price be. (ii) Find the optimal prices under second-degree price discrimination. (iii) Is profit higher in (i) or (ii)? Is social surplus higher in (i) or (ii)?
- PRICE (Dollars per cupcake) 4.00 3.50 1.00 2.50 2.00 1.50 1.00 0.50 0 MC D ATC MR Demand 0.5 1.0 1.5 20 25 30 35 40 QUANTITY (Thousands of cupcakes) At the profit-maximizing output and price, the shop's profit is equal to Given the profit-maximizing choice of output and price, there are Profit Maximizing Outcome Profit Loss 2 (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.$6.40 5.50 4.70 4.00 2.50 C C) $22.00. D) $25.60. E G 0 1 2 B 1 3 H L 4 MC JATC F 5 6 Demand MR I 7 8 27 Total cost at the profit-maximizing rate of output is A) $16.00. B) $18.80.Thinking at the Margin 0 1 2 3 4 5 Hours of advertising 300 350 380 400 410 415 Total number of customers If a firm finds that advertising increases the total number of customers, for how many hours should it advertise? Assume that each extra customer spends an average of $10 at the store, and an extra hour of advertising costs the firm $200.
- Answer both please otherwise we will give dounvoteIdentify atleast 2 pricing strategy being implemented by: 1. Agusan del Norte Electric Cooperative (ANECO) 2. Holcim 3. Mitsubishi 4. Pizza Hut 5. Cebuana Lhullier Support your answer.V See Hint Suppose that Juan sells burritos. The total cost of production, based on the number of burritos produced, is shown in the following table. Number of burritos Total cost ($) 1. 8) 2. 10 3) 13 4. 18 25 34 7. 45 Suppose that the price is $6. Assuming profit maximization, how many burritos will Juan sell? asopdne
